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Incredible disaster or huge success? There are two ways to view how the 360 has done when it launched recently. At a glance the problems associated with the launch seem paramount. Hardware defects such as over-heating units, lack of stock and an average launch line-up for titles might seem like big issues, but are they?

The reality is: no. Despite a lot of media hype over the problems of hardware failure and heating issues, to the extent that some are even mentioning potential lawsuits. But this is sensationalist. Traditionally console launches have hardware problems. The PlayStation 2 suffered from drive failures and the PSP had problems with its buttons and UMD tray. The over-heating problem seems to extend from a badly ventilated external power transformer and the reports are sporadic, as is usually the case. Large scale defects in such a line-up are fairly rare,especially when you consider that Microsoft plans to sell over 3 million in the next 90 days.

The same goes for the game titles and the average review scores they have been receiving. It is very rare for a blockbuster title to come out of a launch line-up, since the machines only start showing their potential about a year into their lifespan. The Xbox was slow at picking up this pace, one of the reasons why the PlayStation 2 built a huge dominance on the market (that and its early launch date), but it appears that Microsoft followed a far more aggressive course with the 360, roping in several prominent developers and publishers, including top Japanese developers. EA backs the console, especially with its sports and racing titles, which go a long way to ensuring the console's survival. Basically, while there isn't a lot that the gaming enthusiasts are getting excited about, it's early days yet. It will be interesting to see if the graphical difference will be a pull factor. Generally it's not the superior console that takes the market, but the 360 represents a huge leap between current and future generation technology - something market leader PlayStation 2 can't compete against.

But all of these could be counter-acted by the lack of supply. It's hard to believe that Microsoft under-stocked the market. Rumors have it that they actually have much more in reserve, but are intentionally under-supplying to gage the market response. It's possible the demand surprised them, but either way at least the console isn't under-selling; this can be a terminal blow for a console if it takes time to move units. "We will receive between six and 12 every week," Zellers Chateauguay branch manager Jacques Clermont told Le Soleil. In his opinion, Microsoft is doing a smart thing by creating a rarity that is attracting lots of attention to it. "This is good marketing strategy," Clermont believes. Retailers talk about steady trickles of supply in small units, so Microsoft can steadily meet demand while fostering a solid demand. In short, it seems to be taking advantage of its time, the PlayStation 3 still being well into the future.

Besides, Microsoft is losing money on every sale - $124 or 32% of the console's selling price at premium. It's a common strategy to lose money on the hardware and make it back on the games, but if the 360 didn't become a big success, it could make Microsoft fit a hefty bill. It is unlikely that an under-supply will tank it.

This doesn't bode that well for other territories, though. The UK is next with a December 2 launch, but there will only be 300,000 units at launch. Industry analysts' estimates of 300,000 Xbox 360s available at launch "were not far removed from reality", said Chris Lewis, the Microsoft executive responsible for the Xbox in Europe, in German weekly financial newspaper Euro am Sonntag.

In other words, this shortage has a trickle down effect (though 300,000 is well above a popular rumor of 50,000) and territories like South Africa are likely to get very few to start with.

The good news is that limited supplies will sell quickly, making the territory look good on Microsoft's radar. But with the local office eyeing out possible distributors for the hardware, local insiders don't expect a launch any time before end 2006. Australia has been confirmed for a March launch, but numbers weren't mentioned. The advantage of a late launch,though,will be better supply and a larger selection of games. Perhaps some price cuts will also favour us down the line.

Regardless, the 360 seems to be on solid footing, providing the supply speeds up a little and the heating problems don't become a frequent one. And there have been a lot of positive feedback about the device, with general approval of the games and hardware- especially the controller. Just don't expect to get your hands on one soon, though.