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Microsoft made too many Xbox Ones

by William Schwartz

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Microsoft’s recent company conference call has shed light on the Xbox One sales figures that were released earlier this month. According to company CFO Amy Hood, Microsoft is in the process of channeling inventory drawdown for the Xbox One.

If you’re not into business lingo, that means they are looking to get rid of excess inventory. Hood confirmed that 5 million Xbox One units had been shipped to retailers, but more importantly, the company financials indicate that they sold 1.2 million Xbox One consoles in the first quarter.

This could explain why we’ve been seeing so many deals on the Xbox One hardware as of late. Microsoft simply miscalculated the demand for the device, and will likely need to curb manufacturing of the console. Despite this excess supply, Microsoft remains adamant that the Xbox One is selling better than the Xbox 360 did at launch. It’s just not selling better than Sony’s PlayStation 4, which led us to recently ask “When will Microsoft drop the price of the Xbox One?

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