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More analysts cool on Xbox sales

Financial analysts covering the electronics manufacturing industry echoed doubts Tuesday that Microsoft will hit current sales targets for its Xbox video game console. Chris Whitmore of Deutsche Banc Alex Brown and Paul Fox of Banc of America Securities wrote in reports that they expect Microsoft to fall short of the 4.5 million to 6 million Xbox units it has said it expects to ship during the company's 2002 fiscal year, which ends June 30. That would mean lower revenue for Flextronics, which has the contract to assemble the Xbox at plants in Mexico and Hungary. Mark Specker, an analyst for investment bank SoundView Technology Group, voiced similar concerns late last month, saying he expected Microsoft to ship 4.35 million Xbox units for the year, after a troubled launch in Japan and tepid sales in Europe. Reuters contributed to this report.

Financial analysts covering the electronics manufacturing industry echoed doubts Tuesday that Microsoft will hit current sales targets for its Xbox video game console. Chris Whitmore of Deutsche Banc Alex Brown and Paul Fox of Banc of America Securities wrote in reports that they expect Microsoft to fall short of the 4.5 million to 6 million Xbox units it has said it expects to ship during the company's 2002 fiscal year, which ends June 30. That would mean lower revenue for Flextronics, which has the contract to assemble the Xbox at plants in Mexico and Hungary.

Mark Specker, an analyst for investment bank SoundView Technology Group, voiced similar concerns late last month, saying he expected Microsoft to ship 4.35 million Xbox units for the year, after a troubled launch in Japan and tepid sales in Europe.

Reuters contributed to this report.