Microsoft suffered Xbox 360 shortage during Christmas

Consumer demand for the Microsoft Xbox 360 game console is so high that the game console maker couldn't keep up in late 2010, with shortages expected to continue through next month.

Last month's console shortage prevented Microsoft from outselling the Nintendo Wii, as the Japanese electronics company sold 2.6 million units to Microsoft's 2.5 million.

Microsoft also admitted January and February demand for the Xbox 360 will remain "tight" heading into the spring. Amazon, GameStop, and several other retailers had Xbox 360 units in stock as of Wednesday, but smaller supply could lead to shortages.

Throughout 2010, the Xbox 360 has racked up strong sales while competing with the Wii and Sony PlayStation 3 game consoles. November was the best sales month for Xbox 360 sales, as Microsoft sold 1.37 million units (344,000 per week).

Microsoft received a strong sales boost from Xbox 360 price cuts and lower-cost bundles, along with the November release of Kinect.

Microsoft new motion-sensing product offered the Xbox 360 an immediate sales boost that increased November and December sales. As many as 2.5 million Kinect units were sold within one month, but now Microsoft will have to find ways to promote the Kinect and the Xbox 360/Kinect game bundle.

The Xbox 360 was the breakthrough game console of 2010, while the PS3 and Wii tried to catch up during a year of economic growth.

This isn't the first time Microsoft has suffered supply issues with the Xbox 360 -- the company claims it is higher consumer demand -- while game industry analysts just note Microsoft is cautious during manufacturing.

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