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[a Master Ninja]

Non-Kinect units were hard to come by (supply constrained) early in the year, were they not?

Correct. The biggest cause was that demand for the 250GB w/ Kinect was much higher this Christmas than Microsoft expected.

It was supposed to be a limited edition just for the launch, with the 4GB w/ Kinect being the only permanent bundle. After the 250GB bundles sold out almost immediately Microsoft grabbed every standalone 250GB console they could produce and turned them into 250GB w/ Kinect bundles. It wasn't until recently that a steady supply of regular 250GBs hit stores again.

 

[Ash Sparrow]

What a great gen for MS, what place something ends up in is negligible at this point i think, though I think we could see a back and forth tug. Sometimes the Xbox manage to even outsell the PS2 in monthly numbers. Plus I think MS might actually be a better company fighting from behind.

 

[Sho_Nuff82]

It will definitely be a psychological victory if Sony manages to pull ahead of MS numbers wise.

Still, I think success should also be judged on how many consoles were sold at a profit and how much profit each was sold at in addition to how the console performed when compared to it's incarnations in earlier generations.

How do psychological victories work in the tech sector exactly?

Is Matrick going to stutter during his E3 2012 on-stage appearance?

 

[okenny]

What a great gen for MS, what place something ends up in is negligible at this point i think, though I think we could see a back and forth tug. Sometimes the Xbox manage to even outsell the PS2 in monthly numbers. Plus I think MS might actually be a better company fighting from behind.

Hate to admit it but MS does its best works form last place

 

[watership]

So, in Europe we have PS3 at 14.7, while 360 at 13.7. PS3 has sold well, while 360 has not.

>_>

Wow. I was completely off. My bad.

So where is the PS3 making up the losses from NA, if they're only ahead by 1 million in EU?
Is Japan's number that big?

 

[Megadragon15]

Microsoft should try to do something to keep their momentum going even if they end up in third place.

 

[Kagari]

Wow. I was completely off. My bad.

So where is the PS3 making up the losses from NA, if they're only ahead by 1 million in EU?
Is Japan's number that big?

5 million in Japan.

 

[watership]

5 million in Japan.

Thanks, it's making a little more sense now.

 

[Aselith]

Again, Microsoft said that 11.2 million Xbox 360 units were sold during FY 2008-09.

Xbox 360 Worldwide Hardware Unit Sales (Unit:Million)

Hardware Sales   Jl-Sp    Oc-Dc    Ja-Mr    Ap-Jn     FY       LTD

FY 2005/06        -        1.5      1.7      1.8      5.0      5.0

FY 2006/07        1.0      4.4      0.5      0.7      6.6      11.6    

FY 2007/08        1.8      4.3      1.3      1.3      8.7      20.3    

FY 2008/09        2.2      6.0      1.7      1.2      11.2     31.5     

FY 2009/10        2.1      5.2      1.5      1.5      10.3     41.8

FY 2010/11        2.8      6.3      2.7       -       11.8     53.6

Could someone post up the PS3 chart for comparison?

 

[szaromir]

I wonder what's operating income gonna be like in Q4. They usually post losses at that time, but this time with really cheap 360 manufacturing they could have profit despite whatever increased expenses they have?

Could someone post up the PS3 chart for comparison?

PS3 Worldwide Unit Sales (Unit:Million)

Hardware Sales   Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr     FY       LTD

FY 2006/07         -        -       1.7      1.8      3.5      3.5

FY 2007/08        0.7      1.3      4.9      2.2      9.1      12.6 

FY 2008/09        1.6      2.4      4.5      1.6      10.1     22.7 

FY 2009/10        1.1      3.2      6.5      2.2      13.0     35.7

FY 2010/11        2.4      3.5      6.3       -       12.2     47.9

Credits to Parmenides for formatting. It's one quarter behind, we should get Sony's numbers soon.

 

[jcm]

How is Kinect more important? The 360 surge in sales started with the slim release and a price drop. I think Kinect is just as important with the rebranding and awareness ,but the slim is almost never mentioned when the current sales of the 360 is applauded. I just find that strange. I suppose if Sony launched the Move around the time of the slim release the same thing would happen.

I have to think/hope MS is going to put a little more effort into R&D for the next gen to avoid another RROD situation.

Well, the Kinect appears to have done a good job expanding their customer base outside the traditional gamer base, so it gets more attention. I don't believe the Move has done that for Sony. It has a high intro price, and isn't different enough from the Wii.

 

[mujun]

How do psychological victories work in the tech sector exactly?

Is Matrick going to stutter during his E3 2012 on-stage appearance?

Gives the talking heads something to boast about. Gives the fans ammo. Gives the gaming "press" something to talk about.

I'm sure it doesn't affect the bottom line much at all (if at all) but nobody is going to say no to moving up a place, now, are they

 

[kitzkozan]

What a great gen for MS, what place something ends up in is negligible at this point i think, though I think we could see a back and forth tug. Sometimes the Xbox manage to even outsell the PS2 in monthly numbers. Plus I think MS might actually be a better company fighting from behind.

Microsoft will need to improve Xbox live for Europe and Asia and they need to expand their game library to have an worldwide appeal. Outside of that, they finally have the Xbox brand being relevant and just need to build from there. 360 could potentially end up close to 100 million sold which is no small feat after their first underwhelming effort ( will be at 60+ by the end of the year and we can expect a price drop or two until 2013 ).

 

[Arpharmd B]

Microsoft successfully expanded their market into that casual demographic they were looking for.

Just personally speaking, I have 3 girlfriends who all have Kinects, Dance Central, Zumba Fitness, Your Shape Fitness, Kinect Sports, Yoo Star, and Michael Jackson are the big hits with them. They are all previous Wii owners, and have never owned consoles since NES/SNES as kids.

My sister too is in that list. Between the slim and Kinect MS definitely has a shot of making up that 1 million deficit they have in Europe. Asia is a lost cause for them, has been for quite some time.

Asia is the sole reason Sony is catching up, but like I said, if MS can get some momentum in Europe, just enough to close the gap, then there is a chance that Sony will still never catch up.

Again, not that it matters. Nintendo is in first, Sony and MS are tied for second. You might as well look at it like that, a 3 million difference in installed base is negligable all things considered. However, if and when Sony does catch up/surpass, heads will roll and it will be a big pyschological victory for Sony. The only way I see MS holding them off is if Kinect is an ok success in Europe, they continue the momentum with price cuts, Gears of War, and Forza in Europe.

I also think that Kinect is going to have a monster holiday in the West, especially if Nintendo holds off releasing Cafe until 2012, that will be easy pickings for MS, and could actually increase their lead over Sony by years end.

 

[REMEMBER CITADEL]

However, if and when Sony does catch up/surpass, heads will roll and it will be a big pyschological victory for Sony.

What, you mean in Microsoft? No, not at all. They could easily tip the scales in their favor if that was what they considered imperative at this stage. They clearly don't, as they haven't had a price drop since 2008, they priced Kinect so it was comfortably profitable from the get go (so much so that even their retail and publishing partners sent off some warnings) and they stopped securing exclusives the way they used to at the start of the generation, even at the face of Sony paying more and more for exclusive content.

For Microsoft, it's all obviously about making money now. You can expect them to become more aggressive again when the next generation starts (and they'll be in a good position for spending, with all the money they're making at the moment).

 

[Sydle]

Microsoft successfully expanded their market into that casual demographic they were looking for.

Just personally speaking, I have 3 girlfriends who all have Kinects, Dance Central, Zumba Fitness, Your Shape Fitness, Kinect Sports, Yoo Star, and Michael Jackson are the big hits with them. They are all previous Wii owners, and have never owned consoles since NES/SNES as kids.

My sister too is in that list. Between the slim and Kinect MS definitely has a shot of making up that 1 million deficit they have in Europe. Asia is a lost cause for them, has been for quite some time.

Asia is the sole reason Sony is catching up, but like I said, if MS can get some momentum in Europe, just enough to close the gap, then there is a chance that Sony will still never catch up.

Again, not that it matters. Nintendo is in first, Sony and MS are tied for second. You might as well look at it like that, a 3 million difference in installed base is negligable all things considered. However, if and when Sony does catch up/surpass, heads will roll and it will be a big pyschological victory for Sony. The only way I see MS holding them off is if Kinect is an ok success in Europe, they continue the momentum with price cuts, Gears of War, and Forza in Europe.

I also think that Kinect is going to have a monster holiday in the West, especially if Nintendo holds off releasing Cafe until 2012, that will be easy pickings for MS, and could actually increase their lead over Sony by years end.

No heads at Microsoft will roll. You don't get rid of the people who helped grow the install base 125% generation over generation, increased LIVE memberships many times over, increased LIVE revenue to more than a billion dollars, increased third-party developer support to match/exceed competitors, released the fastest selling consumer device ever, etc. Only select members of GAF who are mentally challenged will see this generation as any kind of failure for Microsoft if Sony inches them out based on install base.

 

[REMEMBER CITADEL]

You don't get rid of the people who helped grow the install base 125% generation over generation, increased LIVE memberships many times over, increased LIVE revenue to more than a billion dollars, increased third-party developer support to match/exceed competitors, released the fastest selling consumer device ever, etc.

Yeah, this reminded me that I'd forgotten to mention they also increased the Gold subscription fee when many people thought they'd be forced to drop it altogether because of free PSN.

 

[FateBreaker]

Also, a $225m profit for Entertainment and Devices Division (66% increase YoY)

http://www.microsoft.com/investor/E...s/PressReleaseAndWebcast/FY11/Q3/default.aspx

The first quarter was something around 400m, and the second was nearly 700m, so they are really doing outstanding this year.

 

[marc^o^]

Microsoft stock went down by almost 5% today. Among the reasons is Xbox sales bringing down profit margins. Do you know what they mean by that?

http://www.msnbc.msn.com/id/42805796/ns/business-eye_on_the_economy/

 

[REMEMBER CITADEL]

Microsoft stock went down by almost 5% today. Among the reasons is Xbox sales bringing down profit margins. Do you know what they mean by that?

http://www.msnbc.msn.com/id/42805796/ns/business-eye_on_the_economy/

I have no idea. Xbox 360 sales have grown considerably (this was their second best non-holiday quarter, beaten only by the one in which they launched slim) and hardware itself is profitable - even more so now that Kinect bundles make up the most of hardware sales. E&D division income has also grown YoY.

 

[ShapeGSX]

Microsoft stock went down by almost 5% today. Among the reasons is Xbox sales bringing down profit margins. Do you know what they mean by that?

http://www.msnbc.msn.com/id/42805796/ns/business-eye_on_the_economy/

That's stupid. Software has a higher profit margin than hardware. Obviously XBox is going to have a lower profit margin. They are two different businesses. Would they rather that the nearly $2B in revenue from the XBox wasn't there at all?

 

[Lagspike_exe]

Microsoft stock went down by almost 5% today. Among the reasons is Xbox sales bringing down profit margins. Do you know what they mean by that?

http://www.msnbc.msn.com/id/42805796/ns/business-eye_on_the_economy/

You need to invest much more money into Xbox business than in Windows business to achieve the same profit.

 

[Opus Angelorum]

You know when PSN is down when a 'Microsoft fiscal year results' thread turns into a 'Sony is almost there!' cheerleading contest.

They need some hope.

 

[Walshicus]

Just personally speaking, I have 3 girlfriends.

Nice.

 

[-Pyromaniac-]

They need some hope.

saying "they" makes it sound like you're referring to them as fucking plebs of society lol

 

[REMEMBER CITADEL]

saying "they" makes it sound like you're referring to them as fucking plebs of society lol

Well, it would be wrong to treat them as cattle.

 

[-Pyromaniac-]

Well, it would be wrong to treat them as cattle.

ah yes, really emphasises the generosity of those on the wonderful pedestal. Maybe one day "they" will be invited to join them, for they need hope.

 

[REMEMBER CITADEL]

ah yes, really emphasises the generosity of those on the wonderful pedestal. Maybe one day "they" will be invited to join them, for they need hope.

Sure. When they die.

 

[jcm]

...I have 3 girlfriends...

Arpharmd B
I have just one testicle
(Today, 02:05 PM)
Reply | Quote

That's an impressive ball:lady ratio.

 

[zomgbbqftw]

Where did you get 25m gamers with gold from?

Last info we got said "about half" of xbox live users have gold accounts, and there aren't anywhere near 50m xbox live users. (More like 35m right now)

I thought it was half of all owners, my mistake. Even so, 17m XBL subscribers paying $15 per quarter is a large amount of revenue which make the EDD total revenue look too small.

 

[Kasumi1970]

Microsoft stock went down by almost 5% today. Among the reasons is Xbox sales bringing down profit margins. Do you know what they mean by that?

http://www.msnbc.msn.com/id/42805796/ns/business-eye_on_the_economy/

i was reading they don't say anything about xbox sales.......they said PC sales are down.
where did you get the Xbox sales bringing down profit margins? I only saw them talking about pc....did you read the article

 

[szaromir]

Did other companies (EA/Acti/THQ/Sony etc) release their financial report? April is almost over and I only remember Nintendo's and MS's report.

 

[zomgbbqftw]

Sony's is out May 15th.

 

[jcm]

Sony's is out May 15th.

It was delayed to the 26th to assess the impact of the earthquake/tsunami.

 

[szaromir]

Sony's is out May 15th.

EA's is on May 4th. So everyone's kinda late this quarter, but OK.

 

[Shao Kahn Brewing a Stew]

It was delayed to the 26th to assess the impact of the earthquake/tsunami and coincide with PSN relaunch.

Fixed

 

[REMEMBER CITADEL]

i was reading they don't say anything about xbox sales.......they said PC sales are down.
where did you get the Xbox sales bringing down profit margins? I only saw them talking about pc....did you read the article

This is all it says about Xbox:

But investors were concerned with lower personal computer sales nagging at Windows, Xbox sales bringing down profit margins and losses in its online business.

It's near the top, I also missed it the first time around.

 

[Pooya]

May 3 THQ
May 4 EA
May 6 Capcom
May 9 Activision
May 12 Konami, Ubisoft
May 13 Square-Enix
May 26 Sony

 

[OldJadedGamer]

What are the guesses for the next price drop? Weird there hasn't been one since 2008.

 

[charlequin]

I never realized OG Xbox was such a moneysink for Microsoft. What exactly about it tanked?

Similar to PS3, actually: they took an immense loss on each unit sold ($100+ at launch, getting higher as they dropped the price) and couldn't make up for it with software.

I think over the course of the generation the PS3 will break even as an ecosystem

Nope. Not even remotely feasible. There is no conceivable scenario in which the PS3 generates enough profit to break even on the PS3 from here out to the end of the generation.

and probably be profitable as a project for Sony because they have very heavy interests in Blu-ray disc manufacturing and they sell like 3-4m Blu-ray players a year

Sony-branded players don't really factor in since if HD-DVD had won they'd be selling HD-DVD players instead. The only factor that was meaningfully affected by the PS3 was the patent royalties that Sony would earn from other manufacturers only if BluRay was the victor, and again, there is no scenario in which those come anywhere close to making up for losses of $6 billion, much less the further intangible loss of going from a profitable first-place to a money-hemorrhaging also-ran.

Man, the differences are so minute between the 360 and PS3 at this point, I'm surprised people care. Why is the number 2 spot so important when the sales figures are so close?

It's not. This is the sequel to the similarly irrelevant Xbox/GameCube featherweight battle at the end of last generation.

 

[donny2112]

What are the guesses for the next price drop?

May - Wii
June-August - 360
August-September - PS3

$50 cut for each, probably. Maybe a $20 cut on the arcade for 360.

Similar to PS3, actually: they took an immense loss on each unit sold ($100+ at launch, getting higher as they dropped the price) and couldn't make up for it with software.

Just an interesting FYI, but PS3 has almost caught up with the original Xbox in software sold, launch-aligned in the U.S. (~130m for each with Xbox slightly ahead). Of course by this point in the original Xbox's life, 360 was already out.