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Xbox One Shipments Haven't Been Reduced, Suppliers Claim (MSFT)

Xbox One Shipments Haven't Been Reduced, Suppliers Claim MSFT
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Xbox One suppliers are dismissing rumors that Xbox One shipments have been reduced due to the poor yield rates of two key supplies.

According to DigiTimes, the Kinect camera module should not cause Microsoft (NASDAQ: MSFT) to deliver fewer Xbox One consoles this fall.

Newmax, the unconfirmed supplier of the camera module, claimed that its yield rates are in line with the company's original planning. The firm did not say that it is supplying any of the parts for Xbox One, but it provided millions of camera modules for the original Kinect on Xbox 360.

Related: Microsoft's Xbox One Offers 'More Exciting Exclusive Games' Than Sony's PlayStation 4

Meanwhile, Lite-On IT (the unconfirmed supplier of the new console's Blu-ray drive) would not specifically say anything about Xbox One. However, the company told DigiTimes that it remained optimistic about its gaming business.

As Benzinga noted in its previous coverage of the possible Xbox One shipment turmoil, it is highly unlikely that something as traditional as a disc drive -- even a Blu-ray drive -- would cause a shipping issue. Sony (NYSE: SNE), the grandfather of the Blu-ray format, has been using the drive in game consoles since PlayStation 3 was released in 2006.

When Xbox One begins shipping worldwide this November, Microsoft is estimated to send between seven and nine million units to retail. They will not all arrive at once, but the company is expected to deliver ongoing shipments through Christmas.

Sony is planning to do the same. Rumors have claimed that the Japanese tech giant will ship anywhere from 10 million units to 16 million units before the end of the year.

The company has been known to miss expectations, however, so the number of actual units shipped could be much lower.

PlayStation 4 is scheduled to be released in North America on November 15. The console will arrive in Europe two weeks later on November 29, and is expected to be released in Japan in December.

Microsoft has not yet announced the release date for Xbox One.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ

Posted-In: Blu-ray Digitimes Kinect Lite-On IT MicrosoftNews Rumors Tech Best of Benzinga


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