NPD Sales Results for December 2014 [Up2: Nintendo Sales Notes]

Jul 16, 2014
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I'd love to know how much money Microsoft is losing on each $349 XBO they sell.
Not much; its not a very expensive device minus the Kinect. They will be losing money as its clear their putting a lot into marketing. That is the sort of money they can make back as oppose to loss leading on the production cost itself (i.e. PS3).
 
Dec 13, 2006
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England
steverulez.co.uk
Not much; its not a very expensive device minus the Kinect. They will be losing money as its clear their putting a lot into marketing. That is the sort of money they can make back as oppose to loss leading on the production cost itself (i.e. PS3).
Loses are presumably smaller on the Vanilla $349 console vs the AC bundle as well because they have to pay Ubisoft for the games on that one.

A year from launch... minus Kinect, I think its possible they're not losing much, or at least, buying a game or two and XBL/accessories would turn a profit on that console
 
Mar 5, 2014
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I'd love to know how much money Microsoft is losing on each $349 XBO they sell.
Considering they were selling it with two games at $330 on BF, I think they are most likely making a profit on it at $350. Not as big of a profit as Sony is making at $400 obviously, but a profit still.

I am expecting an official drop to $299 at some point this year too.
Either way though, they would still make a profit at the end of the day with XBL subs + software sold....XB1 has an impressive attach rate, so they make good money that way too.
 
May 19, 2013
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I also wonder if before going for the price-drop they thought: we might as well quit if we don't go all out and at least put up a fight in our home territory.

Do they believe in riding it out this gen focusing as much as possible on the USA market which is the only place where can make any sort of stride?

2015 is going to be a very telling year for how the generation will pan out, now that both consoles will be in high gear in terms of game releases and Wii U is a non-factor.
 
Oct 17, 2013
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I also wonder if before going for the price-drop they thought: we might as well quit if we don't go all out and at least put up a fight in our home territory.

Do they believe in riding it out this gen focusing as much as possible on the USA market which is the only place where can make any sort of stride?

2015 is going to be a very telling year for how the generation will pan out, now that both consoles will be in high gear in terms of game releases and Wii U is a non-factor.
2015 will only be a telling year for the US market. Worldwide the race is already over.
 
May 24, 2012
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Oh, definitely. If this was like Classified information from the gov't, just avoiding summary posts would be totally unacceptable. "Security through obscurity is no security." Here, we're just trying to not get anyone in trouble by providing simply traceable lines between data and sources about something that some of us hobbyists care about tracking but by no means can afford the cost to do so in a comprehensive manner. :)
it's all about exposure.

vague one-time leaks lost in the white noise of a massive thread don't have nearly the same impact as easily-digestible, easily-quotable, easily-copy-and-pasted massive summaries of live data from their just-released ridiculously expensive report.

the npd group / the other big players behind this are fickle. their policies change on a whim...what might have been perfectly fine 3 years ago is now a big problem, etc.

we all know how the npd group used to voluntarily give gaf exclusive data. now look where we're at.

*shrug* i don't know, man. i'm just trying to stay on their good side

they have the power to shut things down on gaf just like they did back in 2006 when large amounts of npd leaks were just blatantly copy and pasted.

also, they were really pissed off about the gamecrate leak summaries.
 
May 19, 2013
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2015 will only be a telling year for the US market. Worldwide the race is already over.
hey now, it will be a telling year in Japan too! :p
Europe is more than settled, true. But for the USA and Japan we will get a better picture. Which one will come out on top in the USA and if the PS4 is going to seriously take off in Japan or not.

As for the rest of the world, I'd say it's pretty much settled in favour of the PS4 like in Europe. Except maybe in Brazil and perhaps China, which is looking to be more a non-factor than what one might have expected or wished.
 
Jan 23, 2007
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Lawrenceville, GA
I'd love to know how much money Microsoft is losing on each $349 XBO they sell.
Considering they were selling it with two games at $330 on BF, I think they are most likely making a profit on it at $350.
We don't know--and likely won't ever--if the hardware itself is profitable at the lowered price. But given the bundles, gift cards, etc. Microsoft themselves predicted lost revenues of over a billion dollars during the holiday.

Huge Christmas software volume will likely keep them in positive margin, but the opportunity costs of their strategy are immense. Even with Live fees and game licenses and other ecosystem gains, they'll probably be clawing back the lost revenue of the past two months for the next couple of years.
 

A Human Becoming

More than a Member
Feb 4, 2007
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A 58% drop? 7th gen is going out fast.
Eh, seems pretty normal, especially considering how long last gen was. DS dropped about that much from 2010 -> 2011. Xbox plummeted in 2006 after 360 released: we're talking <10k each month from August to October. I don't have exact numbers for the holiday season, but my guess is <200k for both months. It was >600k the previous year.
 
Feb 23, 2007
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Not much; its not a very expensive device minus the Kinect. They will be losing money as its clear their putting a lot into marketing. That is the sort of money they can make back as oppose to loss leading on the production cost itself (i.e. PS3).
I thought it was more expensive than PS4, even without Kinect. Some of the early BOM estimates seemed to indicate as such anyways. It was only a short 6 months ago that they released the sku at $399, and I'm not sure they were profitable with that sku at that point in time. Has MS made any statements about profitability on hardware since launch?
 
Feb 16, 2010
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Mars
A 58% drop? 7th gen is going out fast.
Compared to last gen, yes it absolutely is.

But last time Guitar Hero almost single handedly gave the PS2 another year of life in the US market.

We also had the MS and Sony releases in different years... that also helped extrend the transition.

But yeah, been a quick move this time, even in territories that have historically been slow to move to new boxes.
 
Mar 27, 2007
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Georgia
Eh, seems pretty normal, especially considering how long last gen was. DS dropped about that much from 2010 -> 2011. Xbox plummeted in 2006 after 360 released: we're talking <10k each month from August to October. I don't have exact numbers for the holiday season, but my guess is <200k for both months. It was >600k the previous year.
In the case of the Xbox, MS stopped making them pretty much as soon as they started making the 360.
 

marc^o^

Nintendo's Pro Bono PR Firm
Feb 17, 2005
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Btw, did we ever get updated LTDs for the "Wii" titles on Wii U? Like Party, Fit U, and Sports Club? Kind of curious how they all sold (I assume pretty badly).
Updated numbers for MK Wii and NSMB would also be interesting, knowing both were among top 30/40 best selling games on amazon in 2014. Pretty crazy legs.
 
May 24, 2012
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Eh, seems pretty normal, especially considering how long last gen was. DS dropped about that much from 2010 -> 2011. Xbox plummeted in 2006 after 360 released: we're talking <10k each month from August to October. I don't have exact numbers for the holiday season, but my guess is <200k for both months. It was >600k the previous year.
the original xbox only sold 4k in november 2006 and 5k in december 2006.

it was absolutely, positively, dead.

microsoft completely abandoned original xbox retail once the 360 was out.
 
Jul 27, 2014
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How is any of this a surprise? The console cost less than the competitors platform and they were practically giving bundles away. More consoles sold within a short time frame usually means more games sold. Doesn't it?
350 is giving something away now? But more to the point, much like the 360 the Xbone has a higher attach rate than the PS4. It had that higher attach rate before the bundles too.
 
May 24, 2012
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Unless you can prove it, prior to November for Xbox, I don't buy it. When sales show PS4 versions of multiplat's in the NPD thread's were higher.
the xbox one has had a consistently higher cumulative retail tie ratio than the ps4 every single npd month from its launch back in november 2013 through december 2014.

the retail tie ratio as of december 2014 was 3.88 for xbox one and 3.68 for ps4.
 

A Human Becoming

More than a Member
Feb 4, 2007
18,587
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the original xbox only sold 4k in november 2006 and 5k in december 2006.

it was absolutely, positively, dead.

microsoft completely abandoned original xbox retail once the 360 was out.
Yep. That's a system going out fast. If my numbers are right it sold about the same amount in 2006 as the Vita did last year. Now doesn't that tell you something...