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Microsoft Earnings: 1.2 million Xbox One's shipped in Jan-Mar, 5.1M total (3.9+1.2)
- Thread starter bob page
- Start date
Thanks Abdiel
Always love hearing retail info
No problem guys. I'd post those same inventory charts again, but after all the concerns the first time I put them up, I'm trying to cover myself more effectively. Haha
But, yeah. I'm not saying the PS4 is moving at light speed velocity, it's not selling out in 1-2 day periods anymore. It *is* still selling out at almost every store within a week, typically. The X1 generally makes 2-3 weeks to clear smaller shipment numbers, and never really empties out. It wouldn't surprise me if Sony had diverted a LOT of stock for the March/April push. It's been selling consistently well since mid-March, with very little delay on resupply.
I just see MS in a difficult spot regarding these numbers... Eating those discounts at the various retailers, on top of bundling in their biggest publicity game thus far... There's no way they can go back to full price here in the US. Some consumers that were completely unaware would buy it, but c'mon, we live in the age of price matching apps and smart phones. Finding out the console was $50 less with the game included, most consumers are not going to be willing to pay the full cost again.
SwiftDeath
Member
What's interesting to me is that the XB1 seems to be back up to $499 at most stores now
http://www.bestbuy.com/site/microso..._clickid=5093ec62-e5e1-4ae9-1264-000057759ef7
http://www.toysrus.com/product/inde...ice=c&camp=PLAPPC-_-PID18041589&KPID=18041589
http://www.target.com/p/xbox-one-co...sku=15220458&gclid=CL2is8HE-r0CFQqEfgod614A1g
http://xbox.microsoftstore.com/stor...itsem_Microsoft US_google_PLA - Xbox Consoles
http://www.tigerdirect.com/applicat...kwCjCV1-CjCE&gclid=CJruocPE-r0CFQlafgodZHYAEg
So as you said it will really curtail demand with all those deals in March for $450 for the same thing
Clearly MS made an offer to retailers to price reduce to try and improve their numbers
I can only imagine what they'll sell in April as PS4 is going to likely decrease too but I can't fathom how much XB1 goes down
DoubleTake
Member
Hmm...thats very good to know Thanks Abidel!
Im calling it now, PS4 will outsell the X1 by ~100,000 in April.
I guess it depends on where the talking point lies. Some people think that MS can catch Sony. I don't see that as a realistic possibility. Anything can happen but I don't see it. Then there are other people who merely think that MS can pick their sales up. Sometimes they all get lumped together.
ZehDon
Member
I feel that this has been overlooked:
They don't usually break it down like this. In fact, they've been using the Android Licencing revenue to mask the extensive loses of the Xbox brand for quite a while. This break down would suggest that they're no longer looking to mask Xbox loses - which, to me, would suggest they're not expecting any loses to report. So, if they're rolling out the information like this, I think an official price cut is off the books, at least for this year. Xbox simply cannot survive another generation of on-going loses - the major shareholders won't let it.Has Microsoft previously broken out Android licensing from the rest of the devices division?
jhmtehgamr20xx
Banned
110K XBO April NPD, calling it now.
I have never heard of a system increasing its price in any gen but this one.
Agreed. I remember Sony doing the same thing with PS3 back in 2007. They discontinued the 20 GB PS3 models while lowering the 60 GB models by $100. Then when the 80 GB models came, they raised their price right back to $600 while discontinuing the 60 GB models. Turns out that the 60 GB models were a clearance price drop.
Difference is, is that Smartphones, Tablets, etc. weren't as big back in 2006-2007 like from 2010 to today.
Sony did it with PS3. See my reply to Abdiel above.
Yeah, it'll be interesting to see how it goes. I've heard from other stores that people come in, see it at that price again, and literally scoff. "It was so and so price all last month!"
I know people have said that MS and Sony don't make major decisions on 'winning' a month's NPD, etc... But I have to wonder if that's true. Winning a month's numbers can reflect a change in momentum, or if testing a new strategy, the success of that strategy. MS poured millions into advertising TF since E3 last year, banking on it capturing the hearts and mindshare of (in particular) American audiences... And to sweeten the pot, they bundled the game in for free with pretty much every X1 sold last month. Then retailers, almost every major retailer, both online and B&M, had it discounted even further. Was it Wal Mart or Target that was even throwing in a free year of live on top of that? Keep in mind, those prepaid cards for a Year of Live, etc are direct money to MS, there's no profit on those. And in the end, Sony still won, and not by a tiny margin, 3x more than my anticipated 20k spread. Sony effectively shut them down, and all they did was... what? Provide more stock to the US? What kind of narrative does that put to the US market?
I don't know about 100k. This month is almost over, and I don't want to make claims of it blowing it out of the water by that much... It's been consistently in stock, and selling well, better than the X1, but I try not to go hyperbolic about it.
Don't forget surface and stuff is also in there. But its very unclear to me how those devices are actually doing. I assume like crap but I have no idea.
Original Xbox actually did at the end of its life, but it was because it included Forza.
According to what non-bullshit source?
DoubleTake
Member
Yea I got ya, im forgetting that the PS4 will also see a drop...I amend my prediction.
PS4 by 60 to 75 thousand in April. If the price cuts and bundled Titanfall still had the X1 trailing by 60,000 in March I see no way the discrepancy doesnt remain that large or grow slightly for April.
$494 million in revenue for this quarter is all we have.
SwiftDeath
Member
It's speculation by analysts
Article on it
http://www.gamesindustry.biz/articl...osses-hidden-by-patent-royalties-says-analyst
From Rick Sherlund, the man with a stick up his ass regarding Microsoft and electronics.
That's fucking brilliant. Where's that from, GameTrailers' expected sales list or something?!
TheRealTalker
Banned
It is a parody of GT's PS2 chart
One analyst. If the Xbox was losing 2 Billion plus then the Xbox division would not be making profit after they moved the patent licenses to a different division.
Especially with games like MLB 14: The Show & the exclusivity marketing of Watch Dogs for PS4 next month?
Microsoft's just making it more easier to push more people towards Sony & PS4 at this point in the U.S. People who recognize that the price tag for Xbox One has jumped back up to $500 are gonna hesitate buying it.
SwiftDeath
Member
I simply sourced it.
Or the Devices division could now be profitable when before it wasn't?
I don't necessarily believe that but the OG Xbox and launch of the 360 would've been huge money pits at the time
this is just amazing....
Who knows, next month has some big games coming out, MLB the Show for PS4 (which I know a few people waiting to snag their PS4s with that game), Bound by Flame, Transistor, and Watch Dogs hitting with the PS4 getting all the advertising and again superior Multi-plats means even if there's a slight drop for April, I can see it picking up again in May.
Has Microsoft previously broken out Android licensing from the rest of the devices division?
None of those are Android. Those are their new segments.
infiniteheteroskdasticity
Member
The countries they're not in are tier 2+ for a reason - Xbox is a 1.5 country brand and they know it. I wouldn't count on more than 200k lost sales there combined (this is being very optimistic).
That said it is selling well enough to be relevant but I still think both it and the PS4 are being flattered by several factors. One is the length of the last generation and the pent up demand for something new. The second is these new consoles are historically cheap on a inflation adjusted basis. The final thing is the fact that online preorders as well as sales are a lot easier than they were back in 2006. On the whole I think both the PS2 and the Wii had more impressive launch sales given the state of the console markets when they launched.
Fox Mulder
Member
there still has to be a real drop coming. No way in hell they ride $499 into the holidays.
they wanted to win the month in sales and didn't. No reason to lose money until they want to do a real drop. If you weren't pushed off the fence with deals like $450 with titanfall or forza and 12/mo Live, you weren't going to buy one soon anyways.
What's even more troubling, is if they lower the price to $450, no one will fall for it, because most consumers have already seen the $450 price tag all last month by retailers.
They're now gonna have to drop the price by $100 if they want to continue to be relevant. AND bundle a game on top of that.
It seems all of your points are focused on the core gamer, and this is why - in my opinion - MS can still do very well with the broader market.
Bundling Titanfall is not the same as selling the XO for $399. It alienates the potential buyers who don't care about Titanfall. Don't underestimate the initial impact of a lower price either.
Importing the XO...again, is very different to having the console officially available where you are. Don't expect your average user to bother importing.
First party studios? Again, not a concern for the broad user. This is a core gamer concern, and I seriously doubt that every person who buys a console is a core gamer. And lets be reasonable - both systems have some good games right now.
The Gold paywall... Yep, I think it sux too. Not so much the MP side, just the app side. But is this a big factor in purchase decisions with the broader user base...?
Again, the systems - right now - are not available on the same terms. Price, availability - these are the two variables which favor one system right now.
MS provided their estimates for next quarter. 1.2 - 1.3 million between 360 and Bone
Edit: This is wrong. I misremembered something I read.
Has Microsoft previously broken out Android licensing from the rest of the devices division?
They have been like that for at least 2 or 3 quarters. And yes, patent licensing is housed within Devices and Consumer licensing, away from all things Xbox. So in short, that analyst that laid claim that those patent licenses were making up for Xbox and other losses, was full of dog doodoo.
Dragonborn
Member
Isn't that pretty terrible? Would it still be tracking above the 360
ethomaz
Banned
Really? Where? This is really low... 360 alone in the third quarter did 1.8m.
It seems they are probably expecting to sell maybe 1,000,000 or so next quarter and 200,000 to 300,000 360s. Not too great of numbers I don't think.
Syphon Filter
Member
Its still $450,i think they will leave it like that till the price cut at e3.
Whoops, thought I read it in am Ars article, but I was mistaken. I think I misremembered the expected hardware revenue for next quarter.
BruceLeeRoy
Banned
Yeah they want the awareness of a public price cut at the end of upcoming games
shinra-bansho
Member
This is an unusually long earnings release thread... is there anything particularly good to read in the last 10 pages.
SwiftDeath
Member
Hmm where?
Or are you using Titanfall/Forzas pack in as a $50 price cut?
ethomaz
Banned
Fine
I just found this expectation from MS too low.theprodigy
Member
oh, I'm sure the Nintendo one will be double this length
(how much will Nintendo's huge overshipment of Wii Us to Japan last quarter effect their shipments for this quarter? stay tuned)
Mass Effect
Member
Thanks. Always interesting to read your posts.
So do you know if the price going back up has affected sales yet?
googleplex
Member
This is hilarious.
Well, the store in Manchester NH is currently averaging shipments of PS4s between 30-50 per week, selling 25-50 each week (so either almost sold out, or sold out), the Nashua NH store gets shipments of 30-40 with average sales of 20-30 per week.
XB1 is getting 40-50 ever 3-4 weeks in those stores, average 8-10 per week, each store. During the peak of the XB1 TF sales, those stores were at 15-19 per week. Take that how you will.
And look at all the '4.2M then' posts already. Ridiculous!
RealityPales
Member
So those unsold XBO's are just piling up each week? Yikes.