Shops across the United States opened their doors at midnight to capitalise on excitement generated by the release of the Xbox 360 games console.

The launch marks Microsoft’s latest attempt to make inroads into the lucrative games industry dominated by Sony and Nintendo.

Retailers were struggling to keep up with demand and by 2pm GMT, Wal-Mart’s online store had sold out of all Xbox packages. Amazon.com had also sold out, but a spokesman said customers who have pre-ordered will receive their consoles soon.

Microsoft said it is producing Xboxes as fast as it can, but it has conceded that an ambitious plan to launch the console worldwide within a few weeks will limit the stocks available in each country. The console will be available in Europe from December 2, and in Japan eight days later.

Manufacturers often stagger major releases over several months so that they can build up a stockpile, but such is the global demand for this new generation of games console that Microsoft opted to release it worldwide before Christmas. This may aklso allow the American tech giant to get a jump on its rivals - the much-delayed launch of Sony's PS3 is expected next year.

"The supply problems are there in as much as the demand is unbelievable," said Peter Moore, a corporate vice president in charge of marketing for the Xbox. He denied that the company had encountered production problems and dismissed the suggestion that production had been deliberately limited to intensify interest. "None of those are true whatsoever," he said.

For die-hard gamers, the console’s selling point is its high-definition graphics and powerful processor, but the device also has the ability to play music, display photos and show DVDs. An American reviewer described it as "a stylish, powerful improvement over the previous model that largely fulfils the company’s promise of making a next-generation game system that can serve as an entertainment hub."

Retailers taking advance orders for the UK version are charging about £285 for the basic console and £350 for the higher-specification model, which comes with a detachable hard drive and a wireless controller.

Games enthusiasts who can’t wait for the UK launch date could attempt to buy the Xbox through the so-called grey market of foreign websites that will ship to the UK. Thousands of customers used this method to obtain the PlayStation Portable earlier this year, despite warnings that their warranty would be invalid and they would have little legal protection if their console failed to arrive.

However, the PSP was launched in Japan months before it arrived in British stores, whereas the gap between the US and UK launch of the Xbox 360 is just two weeks. With many American websites unable to guarantee delivery within that time period, most British consumers will probably wait for the official launch.

Microsoft has been a latecomer to the games console market. The original Xbox was launched in 2001, by which time Sony and Nintendo products were well established, but this time round the American company has stolen a march on its rivals.

Even so, a recent survey by the research company XTN Data suggested that the Xbox will face strong competition. Of the 1,000 people surveyed, 32 per cent intended to buy the PS3, while 27 per cent planned to opt for the Xbox 360. Microsoft will be hoping that some of the sceptics will be unwilling to wait for the Sony product – the company aims to sell 3 million Xbox 360s in the next three months.

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