14 DAY TRIAL // Microsoft's video game console, Xbox 360, might have a slow start in the new shopping season. Microsoft intends to stabilize the process of production, in order to be able to race with its rival Sony, which will launch in the same period the Playstation 3.
The current Xbox generation sales dropped and the sales of the new console might not be as high as Microsoft expects.
The company expects revenues between 11 and 12 billion USD for the last two months of 2005. Microsoft doesn't want to sell a lot of units in December and then experience a dramatic drop in early 2006. Company officials have also said they will open a new factory in January that will ship between 4.5 and 5.5 million Xbox 360 consoles, ahead of Sony's spring 2006 Playstation 3 launch.
Video game console producers like Nintendo, Microsoft and Sony, initially lose money with every console sold, but they make that up in game title royalties. Producers get a real profit only after the hardware costs drop.