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With both Sony and Nintendo closing in on the launch of their next generation gaming consoles in the retail markets, Microsoft is ramping up the production of their Xbox 360 gaming consoles to make them more accessible in the retail stores.

The company plans to continue gaining from the advantage they have by being the first one out in the market. Microsoft launched their Xbox 360 gaming console in November last year. Both Sony Playstation 3 and Nintendo Wii are scheduled to come out sometime this year.

Microsoft has raised the bottom line of its Xbox 360 sales target range for the year ending June 30 to 5.0 million to 5.5 million units from an earlier range of 4.5 million to 5.5 million.

However, increasing the production of the Xbox 360 would put extra financial burden on the company as they make a loss on every console sold in the retail market. Microsoft Chief Financial Officer Chris Liddell said in a statement: “We made a conscious decision to be very aggressive on selling Xbox 360 consoles to get as much into the installed base as we possibly could ahead of Sony’s launch.”

He added: “We’re very happy with the market momentum, but from an earnings point of view, it’s hurting us.”

This entry was posted on Wednesday, May 3rd, 2006 at 7:27 pm and is filed under Videogaming. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.