Microsoft Corp. MSFT.O on Friday pushed back the launch of its XBox video game console by a week and backed away from its initial shipment targets, leaving U.S. retailers and game publishers expecting about half as many units when the XBox makes its delayed debut on Nov. 15. 
The decision to delay the much-anticipated launch of the next-generation game platform from Nov. 8 to Nov. 15 was made in the past week, said Robbie Bach, Microsoft's' chief XBox officer, citing a recent review of the company's preparations. 
Microsoft still plans to ship between 1 million and 1.5 million units to retailers by the end of the calendar year, but would not provide a forecast for the first batch of shipments. 
"We've just moved on to not focusing on the day-one number," Bach said. 
The XBox represents Microsoft's push into the $20-billion video game industry, now dominated by Japan's Sony Corp. 6758.T and Nintendo Co Ltd. 7974.OS , both of which have competing 128-bit game consoles. 
Analysts scaled back forecasts for initial sales of XBox, but some praised the delay as prudent given the uncertainty surrounding consumer sales for the crucial holiday period. 
Retailers and game publishers remained upbeat about prospects for the XBox. But rivals said Microsoft made a misstep, creating an opening for the PlayStation 2 and Nintendo's upcoming GameCube. 
Analysts, retailers, and game publishers said the number of XBox consoles available on the launch day would be around 300,000 -- about half of Microsoft's initial target of between 600,000 and 800,000. 
"I'm now assuming that they'll have 300,000 (units) at launch," said Michael Wallace, a UBS Warburg analyst, who cut his forecast for the year-end to 500,000 to one million units. 
Brendan Barnicle of Pacific Crest Securities said by reducing its initial shipments, Microsoft should also cut related costs, helping its bottom line. 
"They're trying to figure out what's going to happen with consumer confidence," he said. 
Sony Corp. 6758.T , which had its own problems with shipping shortfalls when PlayStation 2 premiered last year, called Microsoft's announcement a "rookie move." 
"I'm not exactly sure what one week is going to buy them," a Sony spokeswoman said. "I think there are clear indications they're not ready for this launch." 
Peter Main, Nintendo of America executive vice president of sales and marketing, said the news was "nothing short of catastrophic" for game retailers, who began to hear of the reduced launch shipments last Friday. 
Main said many retailers have asked Nintendo for more GameCube consoles, scheduled to debut the same week as the XBox, to make up for the shortfall. 
"I'm going to push hard to steal every additional piece I can get from Japan," he said, adding that it was not clear if he could get more than the 700,000 units Nintendo has already allocated for its U.S. launch on Nov. 18. 
"We'll be able to replenish the North American market at a rate of over 100,000 units a week," Bach said. 
Microsoft plans to have 15 to 20 games available at launch for the $299 console, and 30 by the end of the year. Among the more notable titles expected at or around launch are "WWF: RAW Is WAR," "Dave Mirra Freestyle BMX 2," and "NFL Fever 2002." 
Microsoft was evaluating titles for any material that might be considered offensive in light of the attacks on New York and the Washington, Bach said, in line with steps other video game publishers have already announced. 
"Generally, what you see in the marketplace is people doing what's appropriate...and we will do the same," he said. 
In late August, Microsoft delayed the launch of the XBox in Japan to Feb. 22 of next year in order to concentrate resources and available units in North America. The software giant has said it will spend about $500 million marketing the XBox in the United States. 
The game console, one of Microsoft's only forays into hardware manufacturing, has been dogged by rumors about its availability and launch date for months. 
That concern has weighed on related stocks, such as Santa Clara, California-based NVIDIA Corp. , which closed down 1.9 percent Friday and 28.8 percent for the week. NVIDIA is making the primary graphics chip for XBox. 
Microsoft's major partners with the XBox rallied behind the company on Friday, including retailers Toys R Us Inc. and Electronics Boutique Holdings Corp. , and game publisher THQ Inc. 
"Microsoft has recognized that the road to success is more of a marathon than a sprint," said Peter Moore, president of Sega of America, which will make games for XBox. 
The video game industry had expected a banner holiday season thanks to the XBox and GameCube launches and new titles for Sony's PlayStation 2. But some analysts were ratcheting back those expectations after the attacks on New York and Washington and expectations of a U.S. recession. 
Shares in Microsoft closed down 2.1 percent at $49.71 on the Nasdaq on Friday. 
