PS3 In Stock; Possible Sign of Weaker Demand

A report from American Technology Research said on Monday that 58 percent of the 150 stores that it surveyed had Sony's next generation game system in stock, while only 3 percent had the Wii, Paul McNealy of American Technology research said.

"Our channel checks yesterday of 150 retail stores, from boutiques to big-box retailers, showed that 87 stores had PS3 consoles in stock, while only five had Wiis in stock," Paul McNealy of American Technology research said.

New video-game consoles are usually in low-supply during the first few months after the product is released, as avid gamers rush to buy the new system. Microsoft, which introduced its latest Xbox 360 in late 2005, saw low inventories well into January.

McNealy believes that PS3 inventory quantities were similar to a week ago, typically low single-digits.

The Japanese electronics manufacturer reported that it had sold 2 million of its advanced game-systems as of the end of last week. This was weeks short of its goal of 2 million by year's end. Sony claimed the PS3 reached the 2 million mark faster than the PS or the PS2.

When asked if he believes demand is slowing, Todd Mitchell, an analyst with Kaufman Brothers' equities group says he doesn't "think it says anything, except Sony is filling the channel."

A Sony representative was not immediately available for comment.