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Forums - Gaming - 1Up: State of the NPD: Xbox360

This is a 3 part feature, discussing the first half of 2007 for each console (in the US). Xbox360 is up next.

http://www.1up.com/do/newsStory?cId=3161579

State of the NPD: Xbox 360, The Easy Win?

Halo 3 will be big, but red rings could spoil the fun.

By Patrick Klepek, 07/26/2007
  • There was one key difference between the way Microsoft and Nintendo presented their E3 press conferences and Sony: Sony had something to prove. Microsoft and Nintendo, however, are currently guiding the next-generation gaming. Consequently, it's a little harder to poke holes in what the two are doing.

    Xbox 360, The Easy Win?


    Skipping over the obvious -- Xbox 360 is outselling PS3, Sony has catching up to do -- the best way to understand how well Xbox 360 is doing is to look towards the past. In this case, Xbox, a platform that had everything to prove. "Stick to producing operating systems," they said -- and then everyone played Halo. Xbox didn't light the world on fire (like PlayStation 2), but the machine's undeniable momentum should have helped its successor perform worlds better than it did, right? Right?

    Sales data on each machine at the same point in their respective lifespans isn't clear on whether that's true.

    Xbox 360 Month-to-Month Sales

     

  • January*: 294,000, or 58,800 per week
  • February: 228,000, or 57,000 per week
  • March*: 199,000, or 39,800 per week
  • April: 174,000, or 43,500 per week
  • May: 155,900, or 38,975 per week
  • June*: 198,400, or 39,680 per week

     

    Xbox Month-to-Month Sales

     

  • January 2003*: 166,328, or 33,265 per week
  • February 2003: 197,000, or 49,250 per week
  • March 2003*: 164,780, or 32,956 per week
  • April 2003: 128,000, or 32,000 per week
  • May 2003: 123,614, or 30, 903 per week
  • June 2003*: 166,879, or 33,375 per week

    [Why the *? The January, March and June numbers reflect a five-week total. At the end of each quarter, the numbers reflect a five-week tally (i.e. March 4 through April 7 for the March 2007 totals). Additionally, this January was also five weeks, as a result of the calendar leap year, says the NPD Group. Xbox numbers courtesy of vgcharts.com]

  • That's a lot of numbers. What's it all mean? Xbox 360 is more or less tracking at the same pace as Xbox 1, albeit with higher month-to-month sales. More importantly, the sales dips are roughly the same, suggesting Xbox 360's weakened week-to-week sales, despite falling almost every month, are more reflective of the industry's seasonal traditions, rather than a weakened acceptance of Xbox 360. On the other hand, that isn't happening with Wii, and furthermore, Xbox 1 was a brand-new console from an unproven manufacturer and was operating on word-of-mouth traction of Halo, a game that wasn't heralded as the savior of gaming media entertainment -- as was the case with Halo 2, as will be the case with Halo 3.

    Given that Xbox 360 launched a full year ahead of PlayStation 3 and Wii, why aren't more latching on? Before the competition arrived, blaming the higher price points and consumers waiting for all their next-generation choices was commonly noted. Now, we've had all the machines on the market for more than six months, yet Xbox 360 still isn't finding itself as a breakaway platform. Wii might not have the overall sales as Xbox 360, but at its current sales pace, it will easily best Microsoft. Microsoft and Sony are in the same graphics-centric gaming methodology, and current sales trends suggest it might not be the right one -- if they want to claim the first place prize, that is.

    That said, does it matter? Right now, Sony's fumbles with PS3 means competition has been a non-issue for Microsoft. Of course, that doesn't explain away all the problems they've caused themselves -- hello, Red Ring of Death. In an E3 interview with Shane Kim, 1UP asked whether the head of Microsoft Game Studios was worried about the release of Halo 3, Mass Effect and other AAA Xbox 360 releases causing a spur of red rings? He said no.

    "Well, there's no fear. There's an acknowledgment there's going to be some issues, we know this. That's why we did step up and say anybody who has these issues, we're going to take care of these problems. We have apologized, we feel very badly about this. We've apologized to customers to this and taken a billion dollar charge to the company, and we know people that some people are going to run into these problems, whether it's Halo 3 or whatever, and we're working hard to fix those issues that we know about in the hardware, but people are going to run into these issues and we're going to take care of it as fast as we possibly can at no cost to the consumer."

    Extended warranty or not, Microsoft did not enforce a recall of the hardware, which means borked Xbox 360s are still on shelves, while the newly manufactured consoles receive the whispered about internal modifications and newly manufactured machines are fixed from the get go. System moving games like Halo 3 will put pieces of questionable hardware into more consumer hands and more consumers will almost inevitably experience a red ring that will take them out of the game for several weeks. Will September 25th's impact be diminished by a rash of upset gamers who can't "Finish the Fight?"

    Maybe Peter Moore chose the right time to bail out. Still, you can't really argue with a lineup that includes Halo 3, Mass Effect (if it makes 2007), BioShock, Blue Dragon and an episodically-enhanced Grand Theft Auto IV -- no one can argue Xbox 360 will have its best holiday yet. If rumors of a price drop come true, Sony will really need to ratchet things up in 2008. $399 or bust! Additionally, a potential SKU reshuffling could place the Xbox 360 Core SKU at $249, right in line with Wii. Nintendo would have no reason to drop their price -- it's selling too hot -- but at that point, the gauntlet to the mainstream is thrown.

    Will they bite?

  •  



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    I guess Legend/mrstickball are not around to comment.



    They went easy on the 360, typical 1up.

    They cried about new PS3 Ips yet did no such thing for the 360.



    I am though. I think people need to chill out on the 360 supposedly not meeting expectations until Halo 3 and Mass Effect hit later this year. If Halo saved the original Xbox, Halo 3 is definitely gonna give the 360 a massive boost.

    Edit: Also, to the last question in the article. The answer is a No from me. 250$ for the tard pack is not gonna boost 360 sales significantly. They need to get the premium pack down to 300 ASAP.



    Thanks to Blacksaber for the sig!

    so.... the 360 blew it's lead is that what the article is saying........




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    allstarr35 said:
    so.... the 360 blew it's lead is that what the article is saying........

    Not only that but it may be hard to recover. I agree that they should've did something sooner but then again after years of losses they want to see some sales in the black instead of the red.



    Love the product, not the company. They love your money, not you.

    -TheRealMafoo

    Yeah they messed up. It must suck to be Shane Kim and Peter Moore when they were constantly having to field questions about the hardware's failure rate even though they were both basically on the software side of things (and Shane Kim is still having to take the questions about it). I mean they did their jobs well and it should have been the people actually responsible for the fiasco who should have been on the hotseat answering those kinds of questions.

    The Xbox 360 not only has to compete with the Wii and PS3 this holiday season but also has to compete against the bad image the hardware problems have caused. It's like they're going into this holiday season to fight with one arm tied behind their back.

    Since this is an ongoing train wreck they should just bite the bullet and do an actual recall. Unfortunately they waited far too long and it's getting too close to the crucial holiday season to do that but at the very least they should take all systems off store shelves and replace them with the new hardware revision. Even if they go a month in which nobody could buy a system (and likely cost them 200,000-300,000 sales that month) they would very likely more than make that back if everyone knew that any new 360 they bought didn't have the problem. It would be the perfect time to do it to since they've been shipping very few new systems into the channel.



    Legend11 said:
    Since this is an ongoing train wreck they should just bite the bullet and do an actual recall. Unfortunately they waited far too long and it's getting too close to the crucial holiday season to do that but at the very least they should take all systems off store shelves and replace them with the new hardware revision. Even if they go a month in which nobody could buy a system (and likely cost them 200,000-300,000 sales that month) they would very likely more than make that back if everyone knew that any new 360 they bought didn't have the problem. It would be the perfect time to do it to since they've been shipping very few new systems into the channel.

    I'm sure they considered an outright recall, but there could be a variety of reasons they didn't do it. Perhaps they didn't have enough replacement units manufactured to replace all of the on shelf units. Perhaps it would have added a billion dollars to their losses. Look at how tightly they limited their warranty: 3 years *only for* RROD errors.

    I believe MS took the course of minimum loss when confronted with the probability and cost of a class action lawsuit. Money being equal, this course of action would allow them to save face and control of the situation.

    Hindsight is 20/20, we all know, but it looks like launching early cost Microsoft a lot.  Let's hope they can capitalize on it and not fall back into a distant third place as I personally expect them to end up doing.



    I could be wrong but I believe that Microsoft ensured that they would lose their lead when they didn't cut the price of the XBox 360 last year ...

    The Red-Ring of Death is a massive problem for the XBox 360 but was (somewhat) predicted from the time Microsoft entered into the console wars. As a software company, Microsoft built a reputation for releasing flawed software, ignoring problems until they grew into massive PR-Nightmares and then patching the software (while often introducing new flaws which were ignored). Fanboys and Linux supporters often mentioned this when they were commenting on the XBox and claimed that Microsoft would have a large failure rate and suggested the internet connection and hard-drive were really there to patch anything they could.

    These problems never showed up with the XBox mainly because the XBox was primarily conventional hardware that was readily available; the ammount of engineering that Microsoft would have done to produce the XBox was minimal. The XBox 360 was a far larger engineering problem for Microsoft and it could be argued that the built in culture at Microsoft prevented them from realizing it was a problem and acting appropriately.

     



    They didn't mention that Microsoft, while having "no competition", is still losing money every quarter much like the PS3. Is that normal now?



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