Microsoft is now winding up operations in several cities in India, as trouble seems to be brewing over the performance of its Xbox 360 console, according to a report from CNBC-TV18.
The report, which cited anonymous sources, concludes that Microsoft has withdrawn from several Tier-I cities due to lackluster sales. Its Entertainment and Devices Division has also reportedly withdrawn the marketing budget for the current fiscal.
The Xbox 360, which launched in India in September of 2006, has been facing dismal sales already due to sloppy customer support, high hardware failure, and pirated games, the report said. Games are easily available in the grey market for Rs 100, while official titles cost upwards of Rs 2,500.
Microsoft has already repeatedly refused to share its India sales numbers.
"The Microsoft Entertainment Devices Division is very much on track with its targeted business plans," a Microsoft India spokesperson told CNBC.
This comes as Microsoft's gaming division took a hit back in March of this year, as Mohit Anand, Country Manager, Microsoft Entertainment and Devices Division, put in his papers.
Ashim Mathur, Marketing Head, Entertainment and Devices Division, Microsoft India, is also slated to leave the company. However, when contacted by CNBC, he denied any such development, and Microsoft refused to comment.
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