Key US videogame retailers Electronics Boutique and GameStop have both dropped their financial projections for the fourth quarter, blaming hardware shortages of the PS2 and Xbox in the crucial pre-Christmas period. GameStop dramatically illustrated the impact of the hardware shortage in its announcement of the holiday sales numbers, pointing out that in the last weekend before Christmas, the company's 1768 retail stores sold only 186 Xbox and PS2 units.

Yesterday, leading UK retail chain GAME Group also announced its figures for the Christmas period, revealing that it too was severely impacted by the PS2 hardware shortage, with like for like sales falling further than expected in the UK and Ireland.