Things just keep getting worse for the Xbox group, in addition to admitting an unacceptable rate of Xbox 360 failures, MS has also revealed that it has failed to reach its desired shipment target. MS had projected to sell 12 million units of the Xbox 360 by June 30 but instead managed the shipping of 11.6 million units. Despite this, Chris Liddell (CFO) announced that they are still happy with the slightly shy figure.

The company had said it would sell 12 million of the consoles by June 30. Instead, it has shipped a total of 11.6 million units, Chief Financial Officer Chris Liddell said on a conference call

"That is slightly shy" of its projections, Liddell said, but added "we're happy with that number."

Earlier Thursday, Microsoft said it was extending the warranty on the console to three years for certain hardware failures, a move that is prompting a $1 billion charge.