UK Industry Estimates $146 Million Loss From Console Shortages

Industry analysts in the UK are claiming shortages of the Xbox and the PlayStation 2 could cost the industry up to £75 million ($146m). The calculations, quoted by UK trade paper MCV, estimate that since November 8th, around 455,000 potential console sales will have been lost due to a lack of stock, which would have resulted in revenue of £45.5 million ($88.2m) alone. If the usual UK attach rate of two new games for every new console bought are taken into account, then this adds a further £27.3 million ($52.9m) in lost revenue. Retailers, publishers and developers are all understandably furious at the situation, which has improved little since shortages began to be reported in November. Not all blame is being placed entirely with Microsoft and Sony though, with many publishers admitting that everyone has underestimated the buoyancy of the market – with many stores failing to stock enough of high profile titles, with Burnout 3 and Star Wars: Battlefront being mentioned specifically. Even so, most agree that Europe – now the largest single market for video games in the world – continues to be treated poorly when it comes to stock allocation.