Microsoft Nears Xbox Equilibrium

PHOENIX -- With Xbox 360s as scarce as truffles, Microsoft(MSFT Quote) CFO Christopher Liddell has good news for game fans -- and the software giant's legions of investors: Supply and demand should be in balance in the next few months.

Speaking at the Goldman Sachs technology investment conference here, Liddell remains confident that the shortage is nearly over and the company will hit its target of 4.5 million to 5 million boxes out the door by the end of the year.

Liddell also said "he's very comfortable" with Microsoft's ambitious schedule of launching new versions of Windows and Office by the end of the year. But sounding a note of caution, he warned investors not to expect too much too soon from the parade of new products. "There won't be a huge pop (in sales)" initially, he said.

His warning seemed timely, because the market has been waiting for Microsoft's stock to break out of its relatively narrow range for years, and some analysts seem to expect a move fairly soon. ...