"American Technology Research analyst P.J. McNealy estimates 300,000 to 400,000 Xbox 360s have been sold in the U.S in the last week.

Image McNealy believes Microsoft could have sold up to three times that amount, putting the company halfway to its three month target of 3 million units worldwide. "I think they would have been happy to have sold another million if they could have. They just didn't have them," he said.

Microsoft has told the retail channel top expect more supplies on a weekly basis, although further details have not been released. A company spokesperson has said that new supplies would arrive "for the weekend".

It seems even the biggest retailers are in the dark. Speaking to USA Today, Circuit City's Jim Babb said, "We knew demand would outstrip supply for some time. 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 is gearing up for its European launch this weekend, but many believe the shortages could be even worse over there. Retail supplies are said to be tiny, and many customers who have pre-ordered have been told that they may not receive their machines this side of the New Year.

Meanwhile, Microsoft says the number of faulty Xboxs is below the average for new consumer electronics products, of 3%." [more]