Xbox 360 sold out on some major Web sites
Tue Dec 13, 6:47 PM ET

Microsoft Corp.'s new Xbox 360 video game console remained sold out at some major Web retailers on Tuesday and one analyst said he expected holiday shipments at the lower end of his previous forecast.

Amazon.com Inc. showed the Xbox 360 as unavailable in all configurations, except for a single machine on offer by a partner for $1,299.99. The premium Xbox package debuted in November in the United States for $400.

Retailer Best Buy Co. Inc. on its Web site said it would not accept backorders "because the Xbox 360 gaming console is available only in extremely limited quantities nationwide."

Online auction site eBay Inc. showed a number of premium Xboxes priced at around $600 each or more in late bidding.

Microsoft spokeswoman Molly O'Donnell said the company is firmly on track to hit its 90-day target, but declined to give a forecast for sales through the December holidays.

American Technology Research analyst Paul-Jon McNealy said in a research note that Microsoft Corp would be challenged to ship 1.5 million to 1.8 million Xbox 360s worldwide by the end of December.

McNealy now expects shipments to be at the lower end of his target range.

"We believe that (Microsoft) has tried to keep expectations low for retailers this holiday with the hopes of over- delivering. We believe that over-delivering is unlikely at this point," McNealy said.

The software company is aiming to sell 2.75 million to 3 million Xbox 360s in the first 90 days after its launch in late November.

McNealy said he believed Microsoft had 300,000 to 400,000 units for the launch in North America, around 300,000 for the European launch and 100,000 for Japan. He expects Microsoft to ship another 300,000 units in the next week in North America, which would put the total at about 1 million units. Additional shipments would be required at month's end to reach McNealy's 1.5 million to 1.8 million target.

The Xbox 360 made its debut in North American on November 22 and in the following weeks in Europe and Japan -- the top three video game markets. The units briskly sold out in the United States and in Europe and remain in short supply, but Japanese sales were tepid.

On the video game side, McNealy said checks of retail sales over the past week show ongoing weakness. He added that more price cuts or promotions are likely over the last 12 days of the holiday shopping season.

Video game publishers, such as Electronic Arts Inc. (Nasdaq:ERTS - news) and Activision Inc. (Nasdaq:ATVI - news) have been cutting prices or offering special discounts in an effort to move games.

The industry has been in flux as consumers save and wait for new gaming consoles such as the Xbox 360, as well as the upcoming PlayStation 3 from Sony Corp. (6758.T) and Nintendo Co. Ltd.'s (7974.OS) Revolution.

"We continue to believe that the retail environment, which has been weak, may rebound to flat, but that over-performance in sales to make up for disappointing retail sales in November and early December in North America is unlikely," McNealy said.