Xbox shortage hits Microsoft

Microsoft has confirmed a retail shortage of its Xbox video game console, thanks in part to the runaway success of Halo 2.

Many major US retailers are fresh out of Xbox consoles, with no indication of when they'll be back in stock.

Even Amazon.com is out of stock, while specialty games retailers only have used consoles or new ones in "bundles" that require the purchase of expensive add-ons. Bundles are also the rule for the online arm of retail giant Wal-Mart.

A Microsoft representative confirmed the shortage but would not disclose details.

"It's true that surging popularity has led to an inventory issue at retail. Alongside our partners, we are working to increase our inventory position to catch up with the consumer demand for Xbox," said a statement from Microsoft.

Microsoft posted better-than-expected Xbox hardware sales over the 2004 holiday shopping season, thanks largely to the overwhelming interest in its Halo 2 game.

Retailers reported localised shortages over the holiday season, but nothing compared to widespread sellouts of Sony's rival PlayStation 2, which suffered from slow restocking after a redesign of the hardware and a miniature Suez Crisis when a container ship full of PS2 consoles went astray near the Mediterranean.

Xbox shoppers are still likely to have an easier time, however, than those in quest of Sony's new PlayStation Portable handheld game player. The PSP goes on sale in the US on Thursday of this week and many retailers have already sold out of initial shipments through advance orders.

Such shortages are becoming de rigeur for the latest must-have gadgets. Apple was similarly affected by a lack of iPod minis, especially in the most in-demand colours, shortly after release.