Microsoft Corp is three to four weeks behind schedule in manufacturing its first video-game console, though the company may catch up in time to meet the planned introduction date of Nov. 8, an analyst said.
The largest software maker probably has been delayed making the Xbox because of a design flaw by motherboard maker Intel Corp, said Eric Ross, an analyst at Thomas Weisel Partners.
Motherboards hold the chips that power computers and electronic devices.
Delays are common for computer makers, and Microsoft may still meet its target of 1 million to 1.5 million units shipped in North America by Dec. 31, Ross wrote in a report. Microsoft and Intel said they are on schedule and there is no delay with the motherboard. Xbox is expected to be introduced the same week rival Nintendo Co will start selling its GameCube console. Both devices will compete with Sony Corp's PlayStation2.
"Multiple sources throughout the Xbox supply chain have confirmed that Xbox is currently delayed by as much as three to four weeks," Ross wrote. "This doesn't mean that Xbox will have a late delivery date."
Ross declined to identify his sources.
"We are still on track for Nov. 8," said James Bernard, Microsoft's spokesman for Xbox. "There is absolutely no problem with the design of Intel's motherboard." Intel spokesman Robert Manetta said the chipmaker has delivered everything on time so far.
Other chipmakers for Xbox include Nvidia Corp Electronics manufacturer Flextronics International Ltd. is assembling Xbox for Microsoft.
Any delay in putting Xbox on sale would put Microsoft at a disadvantage against GameCube. A delay could jeopardize the Redmond, Washington-based company's ability to benefit from the holiday shopping season, which generally accounts for more than half of video-game sales.
Microsoft shares fell US$1.14 to US$64.69. Shares of game-software makers rose, led by Activision Inc., which climbed US$0.97 to US$34.56.
Sony last year missed sales targets for PlayStation2 because of delays in manufacturing the device.
While Microsoft is likely to introduce Xbox as scheduled, the company may provide fewer units for the first day of sale than its target of 600,000 to 800,000, Ross said.
"They might have less units if they can't make up this delay," he said in an interview. "The execution has to be more robust in order to get the numbers out that they are talking about." Ross said he discussed his report with Microsoft officials yesterday, and they reaffirmed plans to introduce the device as scheduled.
"There's 2 1/2 months to go," he said. "They'll have enough time to make this up." Speculation about Xbox has increased as the introduction date approaches, said James Lin, an analyst who follows the game industry for Jefferies & Co. "This is pretty much the normal stuff that goes around before the launch of a new platform," he said.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source