Xbox design fault set to hit launch

A flaw in Microsoft's Xbox games console looks set to leave retailers facing a supply shortfall on the launch date of 8 November.

The problem is believed to lie in the machine's Intel motherboard, and manufacturing has already been delayed by three weeks.

According to the Financial Times, Wall Street broker Thomas Weisel Partners said the problem hasn't been fixed yet, although there is probably enough slack in the manufacturing schedule to ensure that a shortage of consoles won't be too acute.

Microsoft aims to ship between one and 1.5 million Xboxes over the Christmas and New Year period, with $500m earmarked to market the product at launch.