Joelcool7 said:
So many people are saying that the sales figures did not include consoles refurbished by Microsoft. They say the units weren't shipped to retailers. Well I had a friend who replaced his 360 twice actually going to the store due to the early warranty. Before it became a three year RROD warranty. I also know friends who purchased extended warranties through Best Buy and FutureShop and those retail outlets replaced them, meaning the units were shipped to retailers.
Infact I only know one friend who's 360 hasn't RROD and even his red ringed once but then worked fine so who knows what happened.
I suspect Microsoft now fixes every unit that gets RROD within 3 years, but what about all the units sold before they extended the warranty. Or all the retail warranties like Best Buy and Future Shop who replace RROD units?
I myself bought a 360 Slim and got a three year BestBuy warranty on it so that if it ever breaks down I don't have to go through Microsoft.
I could try to guess but it probubly wouldn't be that close. Who knows how many units were simply bought as replacements!
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As far as replacement at the store level...I had a friend who worked as a manager for Bestbuy and a few yrs back he said many 360's were replaced under their own in-house warranty- which they did send back these units to be repaired. So they dont count as a sale, but BestBuy did make money off selling their own warranties.. Also, they did replace a few 360's to some people as a customer service issue on rare occasions. First, replacements dont count as sales! The defective product is taken and sent back RMA if possible which means basically the store will receive another 360 later from the depot to replace it once the depot receives the defective unit within manufacturer warranty.. As it was not sold but exchanged and it is registered at a POS station with a code to show RMA exchange on the store side. This is not a sale.. its giving a new product off the shelf for free (-1 console ) and taking a bad one sent back RMA and getting a replacement later ( 1) to take its place .. This is a even swap if everything is done right... If the RMA was taken under false pretenses or done incorrectly the store takes a complete loss, but this is typically because the store didnt have the paper work right or the authority to replace the merchandise in question.
Concerning replacement at the manufactuerer level: Doesnt matter if its Sony, Nintendo, or MS .. most consoles are repaired, not replaced as there is a financial loss - but not as much as total console replacement obviously. MS had increased the manufacturer warranty of the 360 to three years - something unheard of in any console warranty - because they knew they had to back a real issue with repairs done at their expense. Anyone, including the author of this post who beleives a manufacturer can legally report replacements as a "sale" and "net gain" to their bottom line doesn't undertand how absurd that actually is. A replaced console is a "loss" and hits the bottom line of any company much like "Shrink" ( theft ) does as a store level.. Eventually this hits the quarterly reports and losses are reported along side of the gains.
And even if you throw all that out and say in your pretend world that they did count as sales, you have to realize the majority of RROD 360's were never replaced, but repaired at a great loss ..as for a couple years MS paid priority shipping on as many as 15 million consoles ( a total loss ) and covered those consoles for 3years from time of sale... MS also payed alot out by increasing the number of repair facilities, hiring more personnel and utilities, taxes on land.. If this had happened to Sony it would've bankrupted them... As far as "replacements" ( done with exchange - so this isnt a sale ) I've read MS replaced around 2 million consoles as customer service PublicRelations for people who had sent their consoles in multiple times ( like 3 or more times).. so no sale there.. and again- the faulty console was still taken back by the depot in the majority of cases ..this hit MS's financial loss category which can be seen in their reports more so then.. As the last 2-3 years they have reported a profit as failures have decreased shaprly and of course with slimline 360 its been virtually non existant..
The XB 360 was around 8 million ahead anywhere before the 'peak' of these repairs and replacements hit.. if anything the whole RROD caused people to stop buying 360's which is one reason Sony was able to close the gap for awhile down to around 4.5 million .. I think the new slimline 360 is reversing that somewhat.. right now PS3's might be getting a slight boost from casual gamer sales due to 'Move' and I expect MS will get a similar boost from Kinect in Nov which would boost 360 sales more since holidays is typically their season to shine. Either way I dont either will make much difference this Gen..
If sales were actually inflated on 360 they would have one of the most "incredible attachment rates" as they are pretty far ahead of Sony in the software sold category:
PS3 source data: http://www.vgchartz.com/worldtotals.php?name=&publisher=&console=PS3&genre=&minSales=0&results=1000&sort=Total
Xbox 360 source data: http://www.vgchartz.com/worldtotals.php?name=&publisher=&console=X360&genre=&minSales=0&results=1000&sort=Total
Lets not forget how many years the XB 360 was under-reported in sales in areas like Scandinavia! Anyone who thinks any console, including the Wii can't be under-reported is fooling themselves.. it happens to all console in some markets..