Microsoft Scales Back Xbox Shipments

Microsoft Corp. expects to ship 3.5 million to 4 million Xbox video consoles by the end of June, a drastic scaling back of previous expectations of 4.5 million to 6 million units, Chief Financial Officer John Connors said.

The revised expectations stem from weak sales in Japan and Europe of the new gaming machine, which is taking on Sony Corp.’s PlayStation 2 and Nintendo Co.’s GameCube.

Microsoft also said it is cutting the price of the Xbox in Europe by 38% and in Britain by 34% to shore up sagging sales.