• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Microsoft Earnings: 1.2 million Xbox One's shipped in Jan-Mar, 5.1M total (3.9+1.2)

Majanew

Banned
Doesn't mean that they'll easily repeat it with PS5, especially when the company is trying to get itself back on it's feet financially.

Ken Kutaragi & the rest who were behind PS1, PS2, & PS3 are gone.

Correct, but one company bitch-slapping the competition could easily become arrogant. MS witnessed PS3's reveal and they still thought it would be a good idea to be arrogant jackasses with Xbox One. And that's with taking the biggest market from Sony and not even reaching PS2-level dominance.
 

Steroyd

Member
Eh, I'm not going to guess how much advantage they've lost this early in the gen, but knowing how generations play out, the big picture isn't going to be clear for a while. Just because Sony has them beat on the first six months of sales doesn't mean that the number they've managed is not impressive compared to past launches. If you wanna paint a credible doomsday scenario for any current platform, Wii U or Vita are still right there.

But it tells us nothing, Xbox 360 shipped 1.5 million console's over a stupid long time iirc, and PS2 and Wii launches had the whole "if they shipped more they would have sold more" shadow hanging over them, which you can't say for the Xbox One at all outside of the first month.

All the Xbox One and PS4's launch tells us is how far production of console's have improved immensely from 7 years ago, hell Nintendo went out of the starting blocks fast with the WiiU ffs.
 

TomShoe

Banned
Correct, but one company bitch-slapping the competition could easily become arrogant. MS witnessed PS3's reveal and they still thought it would be a good idea to be arrogant jackasses with Xbox One. And that's with taking the biggest market from Sony and not even reaching PS2-level dominance.

People learn more from their own mistakes than from someone else's.
 
Eh that seems high. There's another cost analysis done by a tech analyst firm that suggests far far less profit for the XB1 and I think less profit for the PS4 than that too

Besides Platform holders make most of their money from software sales and services

With 2.5M+ more consoles sold PS4 is almost assuredly winning on that front WW

Like i said, I'm not sure on the numbers for profit but the fact still remains that for every Xbox sold, it makes more money than one PS4 sold.

And yes, you are absoloutely right about software & service. Software is king for sure.
 

jcm

Member
So they aren't reporting operating income by division anymore? The slides just have revenue and gross margin.
 
Regardless of how things have changed in the world, I simply don't see Sony bottoming-out as far as support for the PS4 if they completely start dominating the market come mid-late 2015.
They still have major first & second party development teams working on (sometimes multiple at a time) projects.
They have Project Morpheus.
They will have Playstation NOW.


I don't see it because in the two earlier generations when they dominated, Sony continued pushing support and development. They are still supporting the PS3 with content in its (almost) 8 years on the market even with the PS4 kicking ass.
Naturally I could be wrong, but I'm just going off of history of the brand and the confidence I have in the people running the show over there.



Yeah- and you know what? Sony took a beating, learned from it, recovered from it, and here we are.
You think those in the power positions want to make the same mistake? The majority of them aren't even the same people that were responsible for the early PS3 debacle.

Someone always makes a mistake. We thought MS will learn from Sony mistakes and they didnt. Also we dont know if the same people at sony now will be there down the round in 10 yrs. A lot can change in that amount of time.
 
5 million shipments was their goal, they surpassed that and yet people here still play it off as lower than expected.

A five million install base (ie, sold-through to consumers) was the goal, which is why you aren't likely to hear Microsoft talking number of consoles sold to customers any time soon.

This talk about them "not caring" whether the consoles are sold to retailers or through to consumers is absolutely absurd. They make money off software sales and XBL Gold subscriptions. They absolutely want those consoles in the hands of paying customers, they don't just ship them out into retail channels and stop caring what happens to them after that because they've already been paid.
 
Well for Germany I made some charts earlier today that might be helpful

This is Software placements, not hardware

13998992244_f3d6e7fbe8_o.png


Ignore Week 2 though as that's adjusted. this doesn't even account for the fact that the PS4 placements are higher in the Top 50 as well
That is a really flawed way to look at things.
 
Wait, so do we now know for sure that the PS4 outsold the Xbox One in the month of March? - despite the One releasing, and even packing in the game with bundles at a discount, its most anticipated game of 2014?

Yikes. Can only imagine how many sales EA/Respawn lost out on by not releasing on the PS4 - wait, now that I think of it, its probably not so much Respawn who looses out, as I am sure they had to be compensated by Microsoft to go exclusive. I wonder if both Microsoft and Respawn would have made out better if they hadn't made that deal....

Well titanfall wouldn't exist if MS didn't step in and fund development.
 
They seem impressed, but the sales have slowed since then. Also that thread got really nasty at the end. Thanks!

No problem. Was the best example I could think of as posters were generally impressed by MS's numbers until like the day after when we got PS4 numbers lol

Yeah I don't think there's any way for them to hit 1 million a month anymore. I'm seeing way more stock on the shelves in the US now (virtually everywhere). Demand is definitely starting to drop off. 600-700k a month WW is still ok, but disappointing.

I think we'll hear about 8M sold through a bit later in March then when we heard 7M in April

So like the 12th versus the 6th

That is a really flawed way to look at things.

Hmm it would only really be flawed if the couple software SKUs that topped the chart for XB1 and Wii U were charting higher than the highest PS4 SKUs which they're not

If I adjusted it for the average chart position it would more highly favor PS4 and show XB1 and Wii U in a worse light
 

SnakeEyes

Banned
Microsoft's stock price is up almost 3% after hours after this earning release. I would say it is far from doom.
Considering how the majority of Microsoft's money comes from the Enterprise business, MS as a company is not doomed. It's the Xbox brand that's on shaky ground, so it'd have to be "Xbox"-something.
 

Guevara

Member
From audio conference:

Xbox One engagement levels remain high, users spending nearly 5 hours per day on Xbox One

Expect channel inventory draw down in xbox consoles in Q2, historically slower quarter for hardware
 

Mikey Jr.

Member
Hmm thuway tweeted that the PS4 is at approximately 7.5m (he said 7.4-7.6) sold to customers? How accurate is he usually?

Damn if true!

He is saying by E3, most likely 8.6 million.

Imagine if Sony could announce that at E3?

8.6 mill would be HUGE.

I'm getting offtopic. Good stuff for MS. Selling decently for sure.
 

artist

Banned
On the earnings call, they talked about the 360 and XBL earnings and skipped right over Xbox One.
360 "exceeded expectations", no such verbage for Xbone.

For Xbone, she said they'll concentrate on "adding value" (bundles? deals?) and on other markets.
 
I know but when it released xbox og still didn't get an advantage.

That's my point, it came out too late to change that generation's fate... At that point PS2 was just unreachable because of word of mouth, library etc... And remember PSX dominated the previous gen so the brand was at the top...

This time they WERE at the top, the great consumer-friendly american company, while Sony was the bad expensive japanese company in the US.

Look in 6 months what happened....
 

Toki767

Member
From audio conference:

Xbox One engagement levels remain high, users spending nearly 5 hours per day on Xbox One

Expect channel inventory draw down in xbox consoles in Q2, historically slower quarter for hardware

Is that 5 hours watching TV?
 
Like i said, I'm not sure on the numbers for profit but the fact still remains that for every Xbox sold, it makes more money than one PS4 sold.

And yes, you are absoloutely right about software & service. Software is king for sure.

Your are wrong from all the other BOM break downs we have seen .
In fact MS have said they break even at best http://www.gamesindustry.biz/articl...ll-be-break-even-or-profit-making-from-launch
And that was before price drops and giving away there biggest game of the year .
 

jcm

Member
From audio conference:

Xbox One engagement levels remain high, users spending nearly 5 hours per day on Xbox One

Expect channel inventory draw down in xbox consoles in Q2, historically slower quarter for hardware

Well, there ya go. Over shipped, bad quarter coming,
 
That BOM break down is a joke since every where else has Kinect at $75 .
MS was not making $112 per system sold before all the price cuts and free games give away .

Agreed. Like i said, it was the quickest i could find while at work, behind the security access. Even so, the fact remains. More profit per xbox sold. Now i don't know if 2.5M that Sony has over makes it a clear sony victory profit wise, it does narrow the gap for sure.

Your are wrong from all the other BOM break downs we have seen .
In fact MS have said they break even at best http://www.gamesindustry.biz/articl...ll-be-break-even-or-profit-making-from-launch
And that was before price drops and giving away there biggest game of the year .

Also: "Microsoft's Yusuf Mehdi has revealed that each sale of an Xbox One will be a break even transaction for Microsoft at the very least, suggesting that the machine is to be sold at profit from day one - a feat normally reserved for Nintendo."

I'm pretty sure selling the box at 499 gives you some profit.
 
Just to add that 3% increase has nothing to do with the Xbox division.

That is not completely true. Consumer product revenue beat market expectations by a lot, but that also includes Surface tablets which are doing a lot better than expected. Xbox 360 is also higher than expected. Considering Nokia acquisition tomorrow consumer device performance is increasingly important to investors.
 

Jomjom

Banned
Agreed. Like i said, it was the quickest i could find while at work, behind the security access. Even so, the fact remains. More profit per xbox sold. Now i don't know if 2.5M that Sony has over makes it a clear sony victory profit wise, it does narrow the gap for sure.

Theres no fact about who's making more profit per box sold. Nobody knows how much either company makes or loses per console sold. The only real fact is that there's no way there's any profit being made on hardware once you take into account R&D, marketing, packaging and shipping, discount to retailers, and BOM.

That is not completely true. Consumer product revenue beat market expectations by a lot, but that also includes Surface tablets which are doing a lot better than expected. Xbox 360 is also higher than expected. Considering Nokia acquisition tomorrow consumer device performance is increasingly important to investors.

I should have said Xbox One. The 360 is definitely making them money.
 

Biker19

Banned
Well it's not a good look for the Xbox division after all the talk about wanting to sell it. When it's already at the point where a price drop needs to happen to maintain the momentum they do have, it does nothing but enforce the shareholder's argument that the Xbox division does nothing but lose money.

Agreed. While their investors may keep Xbox One around this generation (by most likely spinning the division off), I think we can most likely say that they'll cancel R&D production for the 4th Xbox console. They're not gonna tolerate more big losses of the Xbox brand for the third generation in a row.
 
So XB1 has sold 4.2 million in comparison to PS4's 7 million.

If I were MS alarm bells would be ringing all over the place. Titanfall was not the system seller they thought it would be.
 

Steroyd

Member
PS2 had a whole year to sell where Xbox didn't exist; Even the Gamecube wasn't available, they had no competition so they jump-started that generation...

Question, why does the Dreamcast never exist when we talk about that generation?

every goddamn time, you're not the only one btw.
 
What's the Microsoft version of "Nintendoomed"? Micro-screwed?

Microsoft's stock price is up almost 3% after hours after this earning release. I would say it is far from doom.

5wq9Tze.jpg


...of course they are not doomed; neither is Nintendo. I was referring to the stock reply many people give when a bad earnings report or negative story is released. It's not doom, but it is a bad trend. It shows market share moving in the same direction as the sixth generation, when everyone had a PS2 and a few people had an XBox or GameCube as a second console. If that persists, then XBox One may have trouble getting ports, which would be a big problem for them as they don't have much in the way of exclusives. So it's on MS to read the tea leaves and reverse the trends. We'll see their plan at E3.
 

Majanew

Banned
Agreed. While their investors may keep Xbox One around this generation, I think we can most likely say that they'll cancel R&D for the 4th Xbox console. They're not gonna tolerate more big losses of the Xbox brand for the third generation in a row.

lol, you wish. Keep dreaming, dreamer.
 
A five million install base (ie, sold-through to consumers) was the goal, which is why you aren't likely to hear Microsoft talking number of consoles sold to customers any time soon.

This talk about them "not caring" whether the consoles are sold to retailers or through to consumers is absolutely absurd. They make money off software sales and XBL Gold subscriptions. They absolutely want those consoles in the hands of paying customers, they don't just ship them out into retail channels and stop caring what happens to them after that because they've already been paid.

No one has ever talked about sell through to consumers before Sony started this past holiday season, whether it be Sony, Microsoft, or Nintendo. The only figure we traditionally get from them is this shipment figure during quarterly reports. Anyone who has followed Sales-Age for more than a year knows this. This isn't some trickery by Microsoft, it's been standard practice in the game industry for decades now.

But no, the sales/shipments are in no way bad. If you go into older GAF threads about shipments actually you will see that no one here ever thought they'd reach this milestone before April by the way:

http://www.neogaf.com/forum/showthread.php?t=681101&highlight=xbox+one+5+million

Just sayin.
 
Just to clarify for everyone, there are no hard numbers for what MS has sold through to consumers

Most popular guesstimate is 4.2M though but could be as high as 4.6M/4.7M imo

Question, why does the Dreamcast never exist when we talk about that generation?

every goddamn time, you're not the only one btw.

Was the Dreamcast an accessory for the Saturn?
 
Top Bottom