Microsoft boosts Xbox 360 distribution

Microsoft plans to increase its weekly distribution of the Xbox 360 gaming console by at least twofold, the company announced on Tuesday at the Game Developers Conference.

The software giant said the addition of a new manufacturing partner, Celestica, will allow it to ship "two to three times" more Xbox 360s to retailers each week. Celestica joins Wistron and Flextronics in manufacturing the system and components for Microsoft.

The announcement coincides with Microsoft's release of its new spring line of games. The company also announced additions to its downloadable digital content zone, Xbox Live Marketplace, which it says is being used by more than 85 per cent of connected Xbox users.

Microsoft suffered a shortage in Xbox 360 supplies in the US following the November launch of the device, and some frustrated would-be buyers were forced to wait for their consoles. The situation was repeated in Europe when it launched there three weeks later. The company blamed the shortage on component production issues.

Microsoft also blamed the component shortage for its revenue miss for the quarter ending 31 December 2005. During its earnings call, the company said that it had sold 1.5 million Xboxes, falling short of its prediction of 2.75 million to 3 million units sold in its first 90 days on the market.

Included in Xbox 360's new spring line of games are reinventions of classic favourites such as Lara Croft Tomb Raider and The Elder Scrolls, and Ghost Recon Advanced Warfighter, an addition to the Tom Clancy series.