Yesterday, I noted a seeming scarcity of Xbox 360 Elite consoles at retailers.
I followed up with Microsoft to ask what the situation was on availability of the Elite and whether there was any kind of manufacturing pause.
Here's the response from John Rodman, Senior Product Manager, Xbox Global Platform:
"As anticipated, Xbox 360 Elite has been met with high demand since it launched. Our manufacturing facilities are running at full speed, and we are working very hard to satisfy the desire of every consumer who wants Xbox 360 Elite. There is a limit to the amount of consoles that can be made at any one time, and we know that consumers will snatch these up as quickly as they are made. Eventually, and as soon as possible, we will catch up with the demand."
That sounds plausible, and I'd be willing to leave the matter at that, but the Red Ring of Death issue hangs over every hardware discussion around the 360 now.
In other words, I wonder if Microsoft has throttled back shipments of the Elite until it gets all the hardware problems squared away.
What's the point of pumping a ton of consoles onto retail shelves if you know you're going to get 20-30 percent of those consoles back for repair?
That's especially true if, as mentioned yesterday, a good chunk of those returns are unrepairable.
When that unrepairable unit is a high-priced Elite, Microsoft probably ends up taking a huge loss (the cost of giving a new console to the owner, plus all the logistical costs of shipping the broken and new consoles around the country, and the autopsies and repairs that have to be done by technical staff).
I replied to my Xbox contact, asking him if the Elite was released before or after the 360 hardware problems were found and fixed.
I'm sure Microsoft can't wait to put this whole issue to bed, and the company will likely be forced to announce when it has made the switch to smaller (and presumably cooler and more reliable) 65-nanometer chips.
Those internal upgrades are not normally publicly announced -- console makers don't want early adopters to feel they've purchased inferior equipment -- but in this case the early adopters did get inferior equipment, and I think a lot of potential 360 buyers are waiting for the Falcon systems to hit before they take the plunge.
Especially if those buyers are thinking of buying the most expensive Elite systems.