Mixed reports on Xbox sales

Richard Branson sold in the UK

Sales of Microsoft's games console Xbox are mixed across Europe, Japan and the US, according to reports.

Investment banking firm SoundView Technology Group has released a report stating that Microsoft is unlikely to meet its current sales targets for the Xbox, after weaker-than-expected sales in Japan and Europe.

The Xbox will have to challenge Sony's Playstation 2

But Microsoft has said it is happy with sales of the machine and that weekly replenishments of stock are ensuring that strong demand for the video game system is met.

"We are very pleased with the success of Xbox in Europe to date," said Sandy Duncan, Vice President, Xbox Europe.

"We're happy with the strength of Xbox sales... we're off to an incredibly strong start in Europe and gamers are obviously liking what they see."

'Great'

"We're more than pleased with the success of Xbox so far," said Toys R Us Divisional Director of Merchandise, Richard Barry.

"Sales have been great, especially considering it's March and not November.

"There has been a high software and accessories attach rate, which is also very encouraging."

Scott Dodkins, Senior VP, Activision Europe, said: "Sales of our launch titles Tony Hawk's Pro Skater 3 and Wreckless: The Yakuza Missions have exceeded our expectations, and we're looking forward to upcoming releases like Spiderman: The Movie."

According to statistical data from market researcher NPD Techworld, a total of 4.35 million Xboxes have been shipped across the world, mostly in America.

Microsoft has said it hopes to sell 4.5 to 6 million systems within the year.

'Hampered'

Although the machine has been an unequivocal success in the US, there are reports of slow sales in Europe and Japan.

"We believe a number of factors have hampered Xbox run rate in the March quarter," wrote SoundView analyst Mark Specker.

"We are looking for improved supply in the US market, acceleration from seasonally slow January and February months, as well as momentum from the E3 game expo this May," he said.

John Riccitiello, president of Electronic Arts, the world's biggest software firm, is reported to have said: "Microsoft has had its teeth kicked in, in both Europe and Japan."