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Forums - Microsoft - Microsoft ups Kinect Holiday sales expectations to 5mil!

I guess MS believe they'll be able to manufacture more Kinect units in time for Christmas. All the marketing, news and pre-orders suggest Kinect will be huge this holiday season.



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Squilliam said:
reidlosdog said:
Squilliam said:
CrazyHorse said:
Squilliam said:

I wonder why they upped their predictions. Did they find additional supply? Did they get some more feedback from the market or a combination of the two? It is hard as it stands to know precisely how much they will sell and linked to this precisely how much they have to sell. However since they have better data on the former and perfect on the latter I would trust that their projection ought to be within plus or minus 20%

(does anyone know if plus is fixed yet?)

 

I wonder if the relative success of Move has made them rethink their estimates? If Sony are to be believed and have had to increase production to meet a higher than expected demand then I expect MS would be fairly happy. I don't see why they wouldn't expect a similar (and probabaly greater) success with Kinect, especially given their marketing push. I wouldn't put too much faith in pre-order numbers as an indication of sales as, like others have said, Kinect should do very well over the holidays.

I don't really see them looking to Move at all for their numbers. They already have data and that data gets better as they can see the feedback from their recent advertising moves with Ellen and Oprah etc. Remember both Brett and Pachter has Move for 5M unique users by March, they are looking at 5M within 8 weeks. Completely different sales rates.


Whoa, when you put it like that, yeah, they are pretty different. Could Kinect have sold 10 mill by March?  More?

I never looked at it like that.  This is scary.  Someone might die because they'll fight for a Kinect.  Anyone ready to buy $1000 Kinect on Ebay?  Well someone will be.

What is this going to do to Microsofts Console sales?  They are probably going to sky rocket right?

With those 2 questions, here comes the risky one, and I'm asking it cause it'll probably on everyone's minds if Kinect does well.

Will the Xbox 360 catch up to the Wii?

Console sales will definately increase. By how much? I cannot say. I guess we'll find out but I would hate to speculate ahead of time. Could they skyrocket? Could the Xbox 360 outsell the Wii? Maybe actually thats a good question. The only thing im confident in is that 2010 will be the Xbox 360s peak year thus far and this would be at minimum a 5th calendar year peak.

Will the Xbox 360 catch the Wii? Probably not. However it'll come much closer IMO and perhaps make any casual observer looking back forget how powerful the Wii was in its first few years.

Yeah, I agree with you on that.  Next year will by MS's peak year.  The ONLY way I personally believe MS will pass the Wii is if they kill 2 birds with 1 stone.  They bring in both the semi-temporary casual gamer and the permanent gamer into the equation, but as we can see from this year, the production of MS game studios has slowed down, so I doubt this.



V:  And the truth is, there is something terribly wrong with this country, isn't there? Cruelty and injustice, intolerance and oppression. And where once you had the freedom to object, to think and speak as you saw fit, you now have censors and systems of surveillance coercing your conformity and soliciting your submission. How did this happen? Who's to blame? Well certainly there are those more responsible than others, and they will be held accountable, but again truth be told, if you're looking for the guilty, you need only look into a mirror. I know why you did it. I know you were afraid. Who wouldn't be? War, terror, disease. There were a myriad of problems which conspired to corrupt your reason and rob you of your common sense. Fear got the best of you, and in your panic you turned to the now high chancellor, Adam Sutler. He promised you order, he promised you peace, and all he demanded in return was your silent, obedient consent. Last night I sought to end that silence.

Squilliam said:
CrazyHorse said:

I wonder if the relative success of Move has made them rethink their estimates? If Sony are to be believed and have had to increase production to meet a higher than expected demand then I expect MS would be fairly happy. I don't see why they wouldn't expect a similar (and probabaly greater) success with Kinect, especially given their marketing push. I wouldn't put too much faith in pre-order numbers as an indication of sales as, like others have said, Kinect should do very well over the holidays.

I don't really see them looking to Move at all for their numbers. They already have data and that data gets better as they can see the feedback from their recent advertising moves with Ellen and Oprah etc. Remember both Brett and Pachter has Move for 5M unique users by March, they are looking at 5M within 8 weeks. Completely different sales rates.

Well you're right in that they will obviously have their own data on sales projections and may have been able to refine that data based on recent feedback. However, the only hard numbers available on how sales may perform comes from pre-order data and Move sell through. As many have already said, pre-order data may not be all that useful for casual friendly products so I see no reason why they wouldn't adjust projections based off a competitors sales. Granted the two products are not identical but they are going after the same markets (again MS will likely do much better in the area of attracting new casual owners). If Sony underestimated the demand from potential Wii owners or Wii owners who wish to 'upgrade' (as seems evident by their recent statements, backed up by the EMEAA data) then MS may have done similar and are now correcting their projections based on actually data. Only speculation of course.



CrazyHorse said:
Squilliam said:
CrazyHorse said:

I wonder if the relative success of Move has made them rethink their estimates? If Sony are to be believed and have had to increase production to meet a higher than expected demand then I expect MS would be fairly happy. I don't see why they wouldn't expect a similar (and probabaly greater) success with Kinect, especially given their marketing push. I wouldn't put too much faith in pre-order numbers as an indication of sales as, like others have said, Kinect should do very well over the holidays.

I don't really see them looking to Move at all for their numbers. They already have data and that data gets better as they can see the feedback from their recent advertising moves with Ellen and Oprah etc. Remember both Brett and Pachter has Move for 5M unique users by March, they are looking at 5M within 8 weeks. Completely different sales rates.

Well you're right in that they will obviously have their own data on sales projections and may have been able to refine that data based on recent feedback. However, the only hard numbers available on how sales may perform comes from pre-order data and Move sell through. As many have already said, pre-order data may not be all that useful for casual friendly products so I see no reason why they wouldn't adjust projections based off a competitors sales. Granted the two products are not identical but they are going after the same markets (again MS will likely do much better in the area of attracting new casual owners). If Sony underestimated the demand from potential Wii owners or Wii owners who wish to 'upgrade' (as seems evident by their recent statements, backed up by the EMEAA data) then MS may have done similar and are now correcting their projections based on actually data. Only speculation of course.

They have more data than that.

  • Phone surveys
  • Internet surveys
  • Internet traffic/search
  • Retailer traffic
  • Kinect advertisement displays in malls and the interest therein
  • internal marketing focus groups
  • beta testers analytic data on how often they use Kinect
  • etc

The main reason why I am kind of doubtful of their taking major cues from Move is that Move is on a competing console and is targeting a completely different audience. It is quite likely that both Move and Kinect could co-exist on the Xbox 360 without too much overlap. Furthermore like I said before, Moves sales rate is still quite a bit lower than their original projections.

As for Wii owners looking to upgrade, well, maybe. I can't really comment on what they want to do. Data on that is very hard to come by so therefore I will have to take Sony's word on that.





Tease.

Squilliam said:
CrazyHorse said:

Well you're right in that they will obviously have their own data on sales projections and may have been able to refine that data based on recent feedback. However, the only hard numbers available on how sales may perform comes from pre-order data and Move sell through. As many have already said, pre-order data may not be all that useful for casual friendly products so I see no reason why they wouldn't adjust projections based off a competitors sales. Granted the two products are not identical but they are going after the same markets (again MS will likely do much better in the area of attracting new casual owners). If Sony underestimated the demand from potential Wii owners or Wii owners who wish to 'upgrade' (as seems evident by their recent statements, backed up by the EMEAA data) then MS may have done similar and are now correcting their projections based on actually data. Only speculation of course.

They have more data than that.

  • Phone surveys
  • Internet surveys
  • Internet traffic/search
  • Retailer traffic
  • Kinect advertisement displays in malls and the interest therein
  • internal marketing focus groups
  • beta testers analytic data on how often they use Kinect
  • etc

The main reason why I am kind of doubtful of their taking major cues from Move is that Move is on a competing console and is targeting a completely different audience. It is quite likely that both Move and Kinect could co-exist on the Xbox 360 without too much overlap. Furthermore like I said before, Moves sales rate is still quite a bit lower than their original projections.

As for Wii owners looking to upgrade, well, maybe. I can't really comment on what they want to do. Data on that is very hard to come by so therefore I will have to take Sony's word on that.



Yes all that data will be used to provide projections but it is only based on estimates and opinions where as Move data is actual sell through data, after all people can and do change their minds after focus groups and opinion polls ect. Sony will have used all the methods you outline to provide their own projections for Move which appears to have underestimated demand and so MS may feel their projections were also cautious. Not sure that the sales rates are too relevant in this case as Move has, and will continue to sell, more than enough units to provide useful data to similar products. To clarify, I'm aware their will be differences in target audiences but there is also enough overlap to make the units somewhat comparable. MS most likely haven't taken major cues from Move but I'd be a little surprised if it hasn't affected there forecasts at all.



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CrazyHorse said:
Squilliam said:
CrazyHorse said:

Well you're right in that they will obviously have their own data on sales projections and may have been able to refine that data based on recent feedback. However, the only hard numbers available on how sales may perform comes from pre-order data and Move sell through. As many have already said, pre-order data may not be all that useful for casual friendly products so I see no reason why they wouldn't adjust projections based off a competitors sales. Granted the two products are not identical but they are going after the same markets (again MS will likely do much better in the area of attracting new casual owners). If Sony underestimated the demand from potential Wii owners or Wii owners who wish to 'upgrade' (as seems evident by their recent statements, backed up by the EMEAA data) then MS may have done similar and are now correcting their projections based on actually data. Only speculation of course.

They have more data than that.

  • Phone surveys
  • Internet surveys
  • Internet traffic/search
  • Retailer traffic
  • Kinect advertisement displays in malls and the interest therein
  • internal marketing focus groups
  • beta testers analytic data on how often they use Kinect
  • etc

The main reason why I am kind of doubtful of their taking major cues from Move is that Move is on a competing console and is targeting a completely different audience. It is quite likely that both Move and Kinect could co-exist on the Xbox 360 without too much overlap. Furthermore like I said before, Moves sales rate is still quite a bit lower than their original projections.

As for Wii owners looking to upgrade, well, maybe. I can't really comment on what they want to do. Data on that is very hard to come by so therefore I will have to take Sony's word on that.



Yes all that data will be used to provide projections but it is only based on estimates and opinions where as Move data is actual sell through data, after all people can and do change their minds after focus groups and opinion polls ect. Sony will have used all the methods you outline to provide their own projections for Move which appears to have underestimated demand and so MS may feel their projections were also cautious. Not sure that the sales rates are too relevant in this case as Move has, and will continue to sell, more than enough units to provide useful data to similar products. To clarify, I'm aware their will be differences in target audiences but there is also enough overlap to make the units somewhat comparable. MS most likely haven't taken major cues from Move but I'd be a little surprised if it hasn't affected there forecasts at all.

You may be right but I cannot say that at this point theres anything to prove either way. Im doubtful theres going to be a MS executive standing up and saying that due to Move sales exceeding projections they upped their own forecasts.



Tease.

Well, call me a fool if you like, but executive selling their stock in the company is NEVER a good sign.

http://www.reuters.com/article/idUSTRE6A501K20101106 - Ballmer selling off 12% share in MS.

http://www.gurufocus.com/news.php?id=111611 - Lots of other execs. doing the same thing lately.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

megaman79 said:

Well, call me a fool if you like, but executive selling their stock in the company is NEVER a good sign.

http://www.reuters.com/article/idUSTRE6A501K20101106 - Ballmer selling off 12% share in MS.

http://www.gurufocus.com/news.php?id=111611 - Lots of other execs. doing the same thing lately.


The headline is quite misleading,



Nsanity said:
megaman79 said:

Well, call me a fool if you like, but executive selling their stock in the company is NEVER a good sign.

http://www.reuters.com/article/idUSTRE6A501K20101106 - Ballmer selling off 12% share in MS.

http://www.gurufocus.com/news.php?id=111611 - Lots of other execs. doing the same thing lately.


The headline is quite misleading,


Have I done something wrong?



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

megaman79 said:
Nsanity said:
megaman79 said:

Well, call me a fool if you like, but executive selling their stock in the company is NEVER a good sign.

http://www.reuters.com/article/idUSTRE6A501K20101106 - Ballmer selling off 12% share in MS.

http://www.gurufocus.com/news.php?id=111611 - Lots of other execs. doing the same thing lately.


The headline is quite misleading,


Have I done something wrong?


I'm talking about the article headline in general.