Microsoft's Xbox chief Peter Moore has provided updated guidance for hardware shipments of the Xbox 360, saying that the firm is bringing a new factory online with a view to shipping up to 5.5 million consoles by June 30th.
That 4.5-5.5 million by June target was an original target. The 'revised' target was a case of ignoring the question 'will you meet the 3 million in 90 days target' when asked (Balmer I think) and focussing on the original longer term goal.
By accounts (what little we have) the shortages are production issues. These are unfortunate but 'unavoidable' in that you can't prepare for them. Same happened with PS2. You have a system and forecast how quickly you can produce it and plan accordingly, but if you come a cropper to gremlins it's nowt but tough luck. The only way MS can be fairly cricisted is if they can increase production (in an economically viable fashion) but aren't doing so.
You come across very biased based on your terminology. You may not mean to be doing this.
The correct term isn't "lower demand". That infers stores and customers aren't desiring this product or that shipments are exceeding demand. Neither are true.
Perhaps what you are saying is that "shipping volume issues" may be a problem with manufacturing.
We'll only get a true barometer of what demand is when shipments exceed it.