Xbox 360 buyers stand in line for hours
No one waited longer for Microsoft's hot new Xbox 360 video game console outside the Fifth Avenue Best
Buy store in New York than Peter Gonzalez. Gonzalez, 19, a College of Staten Island student, got in line at
7:30 p.m. — on Sunday. Nearly 29 hours later, when sales started at 12:01 a.m. Tuesday, he walked away
with his prize: the $399 version. "I needed to be here ... to be the first in line," says Gonzalez. Across the
nation, consumers faced sometimes freezing temperatures to snag the much-awaited gizmo. And shortages
were as bad as predicted, driving up prices on auction and other websites. EBay sellers sought more than
$1,000 for the $399 version, with hard drive (the version without the drive retails for $299). The auction site
said about 1,800 Xbox 360s overall were sold between midnight and noon Pacific time Tuesday. Retailers
including Best Buy and Target sold out. No. 1 retailer Wal-Mart said it had some consoles in some stores.
"It's hit and miss as to which ones have it," said spokeswoman Karen Burk. Best Buy expects more consoles
before Christmas. Target didn't know when it might have more. Microsoft has said it expects to sell 2.75
million to 3 million in the first 90 days worldwide. Tuesday, it said it expects to replenish stores week by week.
All the hoopla did little for Microsoft stock; shares closed at $27.91, down 25 cents. For many consumers,
the gadget's release was a family event. In Reno, every member of the Neimeyer family waited in line outside
a Wal-Mart soNiklas Neimeyer, 16, could get one. His grandmother scored the No. 11 spot about noon on
Monday. She was relieved at 3 p.m. by Neimeyer's father. At 6 p.m., mom Anita Marquez-Neimeyer arrived for
her shift. "I pointed out to my son, I said, 'You better remember this.' " Near Cincinnati, the Elam brothers
pooled money. Aaron, 12, contributed earnings from his newspaper route. Kyle, 17, and Chris, 20, chipped in
savings. Alex, 10, emptied his piggy bank.Kyle and Chris camped out at Best Buy in nearby Florence, Ky.,
where they bought two consoles. Soon after opening, the store sold out of all 60 units.
Xbox does second round of 360s
Those who missed out on the early Xbox 360 mania may get a second chance this week to find the new
game system in stores. Meanwhile, among those who managed to purchase the first systems, a small
percentage already are shipping them back to Microsoft for repairs. Major retailers such as Wal-Mart and
Best Buy ran out within hours of last Tuesday's launch. "We knew demand would outstrip supply for some
time," says Circuit City's Jim Babb. "I have been told we'll get additional supplies, so I can only advise
customers keep checking back with stores and on the website.” Microsoft's Molly O'Donnell says the
company has "a weekly replenishment strategy." The first follow-up shipment "is on the way, and it should
be on retailers' shelves by the end of the week or for the weekend." Microsoft won't say how many of the
$300-and-up systems were available at launch. American Technology Research analyst P.J. McNealy
estimates 300,000 to 400,000 have been sold. The company expects to ship as many as 3 million
worldwide within three months; the 360 launches in Europe Friday and Japan Dec. 10. While Microsoft
benefits from the buzz created by quick sellouts, McNealy says, "I think they would have been happy to have
sold another million if they could have. They just didn't have them." Meanwhile, Microsoft is acting quickly
to address early reports of crashes and glitches. "We are doing everything we can to take care of gamers
who are having problems," says O'Donnell, who says the rate of complaints is below the 3% to 5%
expected with new electronics products. (Those with problems should call 1-800-4MY-XBOX.) Online
message boards have reflected a number of technical issues, including hardware failure (indicated by
three red lights on the power button), freezing games, scratched discs and overheated power supplies.
"As soon as the actual game play starts, it locks up," says owner Clayton Leasure, 26, of Knoxville, Tenn.
He called the support line and was sent a prepaid box to use to ship his console back. "They have been
helpful and prompt, so I can't ask for much more," he says. Not all customers are satisfied. "The level of
incompetence I have had to deal with is unbelievable," says Brian Smith, 48, of Owasso, Okla., who is
trying to get a new power supply. "I can't describe how disappointed I've been." Still, Richard Doherty of
tech consulting firm Envisioneering Group gives Microsoft an "A" grade for the launch so far. "It could be
an A plus if they pull through Christmas with this just being misuse or a misconception," Doherty says.
"Do you want to wait six more months for an A plus? Not the gamers I saw in line on Tuesday."
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