Xbox 360 sales down compared to last year - Microsoft profits up
By Dave Parrack
The Entertainment and Devices Division of Microsoft has made a much needed profit over the past year, but how much of that was down to the performance of the Xbox 360 is unclear, as sales are actually on the way down.
Most of the reports and opinion pieces on the latest figures to emerge from Microsoft HQ have been positive about the results, claiming the Xbox 360 has helped the E&D division to a healthy profit, and claiming that the release of Halo 3 is the main reason.
Thankfully, Information Week looked a bit closer at the figures, and have been one of the few to realise that sales of the Xbox 360 are actually down on the same period this year than last.
They report that in the quarter up to December 31st, which includes the vitally important holiday season, Microsoft sold just 4.3 million Xbox consoles compared to 4.4 million during the same period in 2006. It’s not much of a drop, being about 2.3%, but enough of one to be a worry for the head honchos at Microsoft.
Sales of the console improved dramatically before and up to the September release of Halo 3, but unfortunately, once all of the fanboys had bought their new machine, and copy of the much anticipated game, sales promptly fell back down to the previous levels.
The E&D division of Microsoft is responsible for products such as the Zune as well as the Xbox 360, managed a modest 3% revenue increase to $3.1 billion in the second quarter.
So it seems as Sony start to experience a build up of momentum due to new models, and an improved range of games becoming available, Microsoft are seeing a tailing off of demand for the Xbox 360.
Expect either a price cut, or a new aggressive marketing campaign very soon. If Microsoft don’t do something promptly, the whole Xbox 360 venture could have a red ring of death all to itself.
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January 27th, 2008
Fanboys? Nice bit of journalism there. I would have thought that part of the definition of a fanboy would be the type who would be there for the midnight launch of a console, not one who bought a 360 last September. But then again, Blorge is not really a credible site.
January 27th, 2008
A Halo fanboy would be one who bought an Xbox 360 just to play that one game on, hence the appropriate use of the word in my view.
January 28th, 2008
So you’re classing all people who bought a 360 in September as fanboys? That’s a bit presumptious. What about the people who have held off from buying either system, and then bought a 360 for Halo 3 plus all the other AAA titles? Are they just Halo fanboys also?
January 28th, 2008
Interesting bit about Sales dropping off for the Xbox console. But I do not think Xbox has much to worry about since they can stop making games and I’d have enough to play till Dec 2008. But the comment about PS3 is deceptive: “build up of momentum due to new models, and an improved range of games becoming available.” Yeah…..riiiight. They’re only moving because of the price cut. Good luck on the first PS3 hit game…Market has changed, too. PS3 not only has to make a great game but one with a lot of replay value (360 has Xbox Live). There’s PSN but Xbox Live is more structured and you really cant compare the 2.
January 28th, 2008
“So it seems as Sony start to experience a build up of momentum due to new models, and an improved range of games becoming available, Microsoft are seeing a tailing off of demand for the Xbox 360.”
Do you just make this stuff up? The PS3 is dead last in NPD numbers every month. 360 is still outselling PS3 almost 2:1 even after the PS3’s price drop and only a 50 dollar difference between the 360 pro and PS3 40 gig.
How does that translate to Sony’s build up of momentum? I think we have a case of a fanboy calling other people fanboy’s here.
January 29th, 2008
This sites usual reporting standard:
Xbox = BAD!
PS3 + GOOD!
Leave it up to the reader to filter the BS because the authors don’t bother.
January 29th, 2008
microsoft sold 9 millions xbox 360 the first year
microsoft sold 6 millions xbox 360 the second year
the number literally turn over lol
its clear the xbox 360 has reached their peak and the sales are going down
January 29th, 2008
The mod is a baby who cant handle a bit of crit.
You know you are.
This site needs some DNS work.
Bye.
January 30th, 2008
The one thing that no one seems to be looking at is the long term sales of each console. Everyone keeps saying how the 360 is peaking and will soon be dead. Why doesn’t anyone compare the sales of ps3’s to 360’s and Wii’s at an adjusted rate due to their time on the market. Any and all products will eventually reach market saturation. Then all thats left is to look forward to the next product to dazzle the mass of fanboy’s on either side. Just because sales of 360’s are going down doesn’t mean that the console isn’t making gobs of money in software etc.