Analysts claim Microsoft's Xbox games console has flopped around the world.
They say it has come a poor second to its arch-rival, Sony's Playstation 2.
Analysts say sales have been so poor that it may force a cut in price of the €480 Xbox. It's more than €160 more expensive than Sony's rival console.
The Xbox was launched last month with a huge marketing drive.
According to the Independent, reports from Japan, Europe and the US suggest the Xbox has failed to capture the imagination of the gaming public.
A Microsoft spokesman has told the paper there is "strong demand" in Europe but admits there have been no stock shortages.
The Xbox is the company's first move into the highly competitive games hardware market which is dominated by Sony.
It is initially expected to lose billions of pounds on subsidies for the console to pay for its manufacture and marketing and to encourage games companies to write games for it, reports The Independent.
A report by an analyst at Deutsche Bank, says: "While Xbox had been projected to struggle because of inadequate software and poor brand recognition, the setback is worse than imagined."