Microsoft issued its first official report about their new console, the Xbox 360. Although Microsoft shipped 1.5 million units, they admitted they were not able to produce as many units as they hoped for. Microsoft's Chief Financial Officer, Chris Liddell says that Microsoft "still expects to sell 4.5 to 5.5 million units by the end of the fiscal year in June."

Analysts speculate that Microsoft will still be able to reap the benefits of launching first, despite the shortages. The analysts say that the reason they can afford the shortages is because they are the only next gen console on the market; and if Sony's PS3 were to launch today, it would eat up the demand for a next gen console. Basically, what this means is that until the PS3 launches, the 360 is the only console people are seriously interested in.