Xbox hardware supplies have overtaken demand, Microsoft says

Microsoft CFO Amy Hood has told investors that there will be a "channel inventory drawdown for Xbox consoles".

An inventory drawdown is the process of reducing the amount of available inventory of a product which, as Gamasutra points out, implies that Microsoft has produced more Xbox consoles than it is currently able to sell.

Hood added that the company expects to work through some inventory” in the current quarter.

In other words, supply is outstripping demand, in which case Microsodft would halt manufacturing of Xbox consoles until demand once again overtakes available hardware supplies.

Microsoft confirmed this morning that it had sold 2m Xbox consoles in the quarter ending March 31st, 1.2m of which were Xbox Ones.

The numbers also revealed that Sony in the same period sold just shy of 3m PS4s.