Microsoft: Xbox 360 Shipments 'Slightly Shy' Of Goals

As part of its investor call regarding its new warranty policy, Microsoft has said that its initial target of 12 million Xbox 360s shipped in fiscal 2007 has fallen 'slightly shy' to 11.6 million, though CFO Chris Liddell has said the company is "happy with the number." Following the company's second quarter results in January of this year, Liddell cut the company's estimates for Xbox 360 hardware from 13-15 million to 12 million for the fiscal year ending June 30th, 2007. The company had shipped 10.4 million Xbox 360s to stores by the end of 2006. "That is slightly shy," said Liddell in the call, but in the overall context of the marketplace... we're happy with that number." During the call, both Liddell and Entertainment & Devices Division president Robbie Bach, reiterated that despite the over $1 billion in charges the company would take on with the new warranty policy, the overall state of the Xbox business was strong, and that, in fact, the new policy would "strengthen the long term health of Xbox business."