Microsoft Corp, which turned to video games to boost revenue as personal-computer sales slowed, sold fewer Xbox machines than expected in November, at the start of the holiday shopping season, an analyst said.
Microsoft sold 468,000 Xbox consoles in the US last month, Banc of America Securities Inc analyst Bob Austrian said, citing market researcher NPD Group Inc. That's 33 percent less than the 700,000 Austrian had forecast.
The world's largest software maker has struggled to gain video-game sales against rival Sony Corp, whose PlayStation2 has outsold the Xbox by 10 to one. The start of the holiday season suggests that Microsoft's sales from Xbox will be about US$700 million this quarter.
"Industry growth rates, for both consoles and video games, may be slowing, or at least, seasonally weaker than expected," Austrian said.
Microsoft spokeswoman Molly O'Donnell said the NPD report doesn't accurately reflect all of the company's sales because it excludes those at Wal-Mart Stores Inc, the largest US retail chain.
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