We have been hearing from a number of video game retail sources who tell us that the supply of Kinect is starting to improve throughout North America. Many box big retailers have been re-stocked with more units to sell ahead of the Black Friday sales rush. Reports confirm that Microsoft has moved over 1+ million Kinect units in the first ten days of its release.

In our own spot checks of big box retailers, we found that the stores we checked had both the Kinect add-on and Kinect console bundles back in stock. According to those we spoke with, additional Kinect inventory started to arrive late last week.

While admittedly it seems as if no one has as many Kinect units as they want, they are happy that they at least have some to sell. It seems, however, independent video game retailers are the ones who are more pinched as to the availability of Kinect product. According to several independent retailers that we spoke with, while the situation has improved and they are able to at least get some units to sell, they don’t expect to have enough to meet the demand in their stores this holiday season, and expect to lose Kinect sales to the big box retailers.

Demand for Kinect, especially in North America, is expected to remain strong this holiday season. Analysts that we have spoken with confirm that they believe Kinect for the Xbox 360 will outsell Move for the PlayStation 3; and they also expect Wii sales to be rather flat this holiday season.