Xbox 360 sales below expectations [update 1]
by Justin Murray 
{ Dec 4th 2006 at 7:15PM }
[Update: Apparently this is a false story that has been circulating the web chain-letter style. Let's wait until the official NPD numbers come out and add them to the weekly Japanese numbers.]
It could be assumed that when Microsoft has the only game in town that is in regular supply they would do incredibly well. Apparently, that isn't the case; the Xbox 360 failed to meet sales expectations for the month of November.
According to Bloomberg, Microsoft only managed to sell 468,000 Xbox 360 units in the month of November, quite a bit short of the 700,000 expected by analysts. The expected reason for the missed analyst goal is not known. The 360 seems to be selling at the same pace as the rest of the year, which is not a good sign during the holiday season.
With the lack of a major sales boost in November for the 360 -- Black Friday more specifically -- and the declining interest in the PS3, are consumers becoming weary of the same old game with a prettier shell? This sluggish trend could prove Nintendo's strategy that next-gen is about new experiences; they are doing just fine with their sales, having outsold Microsoft worldwide just in the United States. New experiences are not possible if the focus is on more realistic graphics.
Reader Comments (Page 1 of 2)
Jay @ Dec 4th 2006 7:22PM
I don't think it has to really do with Nintendo or gamers getting tired of "shiny new graphics".
It's the price plain & simple. $ 400 for the premium unit is too much money. Until Microsoft drops the price (likely early Spring when the PS3 is in ready supply) then you'll see the sales start to pickup.
Pedro @ Dec 4th 2006 10:13PM
Here's a thought, it is fucking expensive. just like the PS3. Neither system is cheap enough for people to flock to.
XBOX users are waiting for the all important halo 3, or some other massive exclusive.
Sony fanboys won't buy one anyway, and the average gamer is only willing to buy a wii.
Storm9 @ Dec 4th 2006 8:39PM
Why do you post this, you are going to make 90% of the people on Joystick(xbox fanbots) Sad!
They cannot accept the fact that their uber 360 is not so uber at all.
Kyle @ Dec 4th 2006 8:32PM
I'm sure the Fanboys will say otherwise but there haven't been that many convincing arguments to go next gen. People have been waiting to see what PS3 and Wii will offer, so maybe now with gears of war, it'll pick up in sales.
Personally I'm still trying to catch up on all the games I couldn't afford from last gen.
cubbiechris @ Dec 4th 2006 7:25PM
$400 is too much but $250 is better for the WII? It's a gamecube! It should be cheaper also.
Kish @ Dec 4th 2006 8:49PM
I don't know if it is just price though. I agree with the poster. For a new generation, I hope for a new experience. As much as some people like to harp on the wii as gamecube 1.5, as far as I am concerned, playstation and 360 are more guilty of just being a minor upgrade than the wii.
The wii is a new system and a new experience. PS3 and 360 are...well they are computer upgrades. They aren't really new products. They are not near the leap over ps2 and xbox I would expect of a new generation.
The wii is something new, 360 and PS3 are just upgrades. (Note: this does NOT mean I don't want one. I upgrade my gaming rig regularly. Upgrades aren't bad. But in my opinion, something new is even better. Heck the only reason I upgrade in the first place is so my system can handle something new).
Duck @ Dec 4th 2006 7:29PM
It's a slightly more powerful Gamecube with an excellent, unique control scheme.
Wooster @ Dec 5th 2006 10:12PM
The link for American Sales goes to Japan's sales...
Milkshake @ Dec 4th 2006 7:30PM
I think Sony are in trouble, let look at the facts shall we
LETS GO BACK TO THE YEAR IS 2005
Nintendo said they are not in competing with 360 and PS3 for graphics but would launch a console based on Easy pick up and play for all the family gamers and non-gamers young and old
Sony bashed MS’s choice to go with the Core and the Premium systems and the lack of their limited availability during its worldwide launch and no integrated HD optical drive:
Sony: The next Gen does not start until we arrive, we will launch in spring 06
Sony’s machine will have 1080p that will output to 2 screens and will launch with our new propriety format BD drive to go along with our propriety UMD PSP disc.
They go on to say the Cell will render reality and demo CGI movies so polygon heavy that crowds of sonyfanbots have trouble expanding their chests to breathe properly, 3 die and 129 people now endure everyday live with a artificial respiratory systems.
FAST FORWARD TO SPRING 06
No PS3 launch, Blue-ray production as reason, we will launch worldwide Q4 2006
THEN E3 06
Nintendo steals the show, 360 has a good showing.
Sony’s PSP UMD’s are dead and buried next to Atari’s E.T.’s cartridges
Sony after mocking MS then announces their own 2 systems, 20g, 60g then remove Europe from their world wide launch, a bit like the World Series.
Sony loosing the war in the handheld market and rightly fearing Ninty especially in Japan look at what Nintendo are doing and add botched 6 axis controller.
NOW WE ARE UP TO PAR:
The Wii is selling extremely well as expected due to the positive hype it had on the lead up to its launch and after and through clever marketing saying its not in direct competition with either of them. They have a great system this Gen as they attract families, gamers / non-gamers plus more girls, all at great price. It seems they also looked at MS but instead of just bashing them, looked at the logistics of how hard it was for a large company like Microsoft to launch the 360 worldwide. This has helped them three fold:
1. Launched with just enough consoles to have positive press when it sells out compared with the PS3
2. At the same time large enough quantities to release top IP Zelda as well and make money.
3. 3 rd party developers can forget about waiting to see if the Wii will succeed before deciding to produce games like they did with the DS, this will help the game catalogue
grow quicker than if it was just down to Nintendo
Great job Ninty all round
Sony has not got two screen output, its too expensive and there are not enough on the shelves, hardly any games have 1080p. Blue ray another failed format
Yeah the PS3 is amazing…. In that it has actually done the impossible and made the 360’s world wide launch last year look good.
Ms had a botched launch, limited amounts on shelves, not the greatest launch games, but it had the luxury of having no competition at the time, that head start was needed to get the system to where it is now and ramp up production. However it now has the best looking game ever GOW, most games look or play better on the 360 than they do on the PS3 and of the all consoles right now the 360 has best online service on the planet.
Yes it has taken a while but they like Nintendo now have momentum, and with a head start of nearly 10m sold things are looking good for them, the asking price is value for money if you want HD graphics now.
There is no reason for MS to drop the price of the 360 this side of Christmas, its selling well, has a great library of games right now and has stock on the shelves.
Sony is not a threat at the moment they only have a around 350,000 Muppets with them at the moment. PS4? At this rate with the Blue ray diode shortages it will take a longtime if ever before this Muppet show gets a new series
MS and Nintendo have got their ship in order and will win this war SONY YOU LIED TO MUCH the Emotion Chip in the PS2 sucked the only people to gain any emotion were the Shareholders a smile from ear to ear, this time however you have reaped what you sowed, VAPOURWARE.
Oh and the post well its all positvie for Nintendo, sony watch out
GhostBox @ Dec 4th 2006 10:14PM
Meh.....November was the PS3 and Wii's launch month. Who didn't expect that to disrupt 360 sales?
Then again, Black Friday was not the overall financial success that was expected either. Might have to wait until after the silly season is over before we know how 360 sales performed.
youngbuc @ Dec 4th 2006 9:54PM
i agree with the first post....microsoft needs to drop the price of the system if they want to see the sales they are expecting.
i'm ready to buy a 360 once the price drops (pretty much just for halo 3 and xbox arcade/live)
Erec @ Dec 4th 2006 7:31PM
"New experiences are not possible if the focus is on more realistic graphics."
Really? Driving through a tunnel full of 1,000 realistic zombies was pretty new to me, much moreso than pretending like I was swinging a tennis racket.
Or how about the conversation system in Mass Effect, made possibly largely by the 360's ability to offer very realistic facial animations. Stuff like that will bring emotional engagement to a completely new level.
Don't get me wrong, I enjoy the Wii, although it's gotten little play for me since it came out. I just don't buy into the idea that it's the only system whose strengths are capable of offering new experiences to gamers. The key will be what experiences developers choose to create with each systems' strengths.
Comtar @ Dec 4th 2006 9:26PM
"Microsoft only managed to sell 468,000 Xbox 360 units in the month of November, quite a bit short of the 700,000 expected by analysts. The expected reason for the missed analyst goal is not known."
Hmm....... no..... couldn't be two new video game systems were coming out in November would it? No.... couldn't be that?
How the hell can you NOT know the reason for the drop in sales?
MSH @ Dec 5th 2006 1:37AM
Two reasons off the top of my head for why this has happened.
1. No real reason for sales to pick up on Black Friday, as there were little to no special prices for 360's on Black Friday, which is what it is all about. If it's going to be the same price as any other day, why fight the insane crowds?
2. They've begun to reach the limit of their prospective customers who have HDTV's, which are basically required, unless you want to hook it up to a widescreen monitor. The upshot to this is that many more HDTV's are expected to be in homes by the end of this holiday season, so that potential customer base is going up. Of course, so is their competition.
I do think they would be wise to do a price drop in the coming weeks to get more units out the door during the holidays. I'm not in their marketing department, but it seems like it would make sense to eat a little more on each unit in order to get more units in homes. Software and accessories is where the money is really made anyway.
I swear, it seems like a monkey could be an analyst these days.
Eaode @ Dec 4th 2006 7:32PM
It's 2.5 gamecubes that have been miniturated, refined, gone online, got several non-gaming features, and has a brilliant new control scheme.
The DS is just a GBA with a fancy new screen.
Ian @ Dec 5th 2006 3:20PM
I completely agree with #1. Its not like the 360 isn't good enought or that it only attracts the hardcore audience, its just to damn expensive. $400 dollars doesn't seem like a lot of money to drop on a console for enthusiasts (compared to the PS3 at least), but for the average person they see $400 bucks as a heavy investment and with the last gen systems under 150 and the Wii at the "usual trend" of 200-300 for a new console its just a lot cheaper to buy a Wii. And while the 360 may be the only one you can go out and buy right now, its been a year and people know a price drop is coming. MS should have dropped the price, although they still can, at least buy 50 bucks to make the core the same price as the Wii.
Xavier Gill @ Dec 4th 2006 7:36PM
The 360 has had piss poor sales in USA:- http://forum.pcvsconsole.com/viewthread.php?tid=11067
Aran @ Dec 4th 2006 7:33PM
Someone give a star to Milkshake (4. post), he deserves it.
Joseph Tufano @ Dec 4th 2006 7:37PM
Hmm, lets think.. why xbox 360 sales havent gone up in November? BECAUSE TWO MAJOR CONSOLES JUST HIT THE MARKET! What do people expect. All these so called "analysts" are idiots. Common sense prevails. Yey.
MosquitoControl @ Dec 4th 2006 7:37PM
If they can't break one million this holiday season they're in trouble.
They should have been near 1.5.
Mario Elenes @ Dec 4th 2006 7:48PM
Wait, so you're telling me that the X360 managed to keep the same level of sales in a month before the thick of holiday sales (december > november saleswise), and when the two big competitors (for which everyone was holding their breath) hit the market, and THAT is a bad performance?
I would have been disappointed if the 360 were the only console in town and did not improve its sales, but considering the worldwide market consumed about 2 million consoles, (and this includes an impressive Wii launch), the sales numbers staying flat doesn't sound so bad.
GhostBox @ Dec 4th 2006 10:14PM
exactly Joseph Tufano
Kumar Shah @ Dec 4th 2006 8:50PM
Lol...those sale numbers are not from 2006. Thats 2002 for the original Xbox.
Same thread already posted and refuted at NeoGAF and TXB.
Stupid people, lol.
Ndric @ Dec 4th 2006 7:45PM
Woohoo, hope this forces MS to have a price drop
Kyle @ Dec 4th 2006 8:49PM
I'm sure the Fanboys will say otherwise but there haven't been that many convincing arguments to go next gen. People have been waiting to see what PS3 and Wii will offer, so maybe now with gears of war, it'll pick up in sales.
Personally I'm still trying to catch up on all the games I couldn't afford from last gen.
The biggest influence to me is there was too much life left in the last set of consoles to justify a $400 expense.
Lone Starr @ Dec 4th 2006 7:44PM
I cannot find this on Bloomberg. Someone on another forum told me this was debunked. Anyone know what's going on?
BIGGEN @ Dec 4th 2006 7:44PM
#9
so did you determine this from your extensive knowledge of console sales and predictions? how would they be in trouble? can you put any facts behind "oooooh dey in twouble!!!" hahaha dumb fuck.
brett @ Dec 4th 2006 8:54PM
> New experiences are not possible if the focus is on more realistic graphics.
Just might be the worst sentence ever posted. Anywhere.
DiscoGodfather @ Dec 4th 2006 7:44PM
MS should have dropped the price on the X360 just before the Wii and PS3 launches. It would have cost them a pretty penny, but I personally know quite a few people keen on the X360 who are waiting around for the price drop. They could easily be seduced by abundant and cheap Wiis if MS doesn't act soon.
Kumar Shah @ Dec 4th 2006 8:50PM
Same thread from NeoGAF:
http://www.neogaf.com/forum/showthread.php?t=132004&highlight=360+sales
Lets get back to posting some credible news now.
Kumar Shah @ Dec 4th 2006 8:50PM
Another NeoGAF thread where it was posted:
http://www.neogaf.com/forum/showthread.php?t=132004&highlight=360+sales
aegies @ Dec 4th 2006 8:52PM
the 360 has been selling between 220-247 thousand a month most of the year. 470,000 is quite a bit more than usual.
ngs @ Dec 4th 2006 7:51PM
http://www.google.com/trends?q=Wii+%7C+%22Nintendo+Revolution%22%2C+%22Xbox+360%22+%7C+Xbox360%2C+PS3+%7C+%22Playstation+3%22&ctab=1&geo=all&date=2006-11
ophirv @ Dec 4th 2006 9:00PM
WOW ...
joystiq just made a big mistake .
look at the date at the original article http://play.tm/story/880
They should stop searching google news !!!
nijah @ Dec 4th 2006 7:48PM
@Milkshake
http://www.rif.org/
KidInsomnia @ Dec 4th 2006 9:05PM
It has been debunked. It's from an article detailing the vagaries of the 2002 Xbox November, in which the console sold that exact amount.
"Kent Brockman, Springfield News. DO YOUR RESEARCH!"
:D
Marty @ Dec 4th 2006 10:08PM
Sales lagged in November, the month where PS3 and Wii launched, and they don't know why? These analysts... I don't get them. Obviously people bought the new systems, and didn't want to spend more money on an Xbox for the month. Where can I get my analyst badge now?
buttlover @ Dec 4th 2006 7:55PM
what the hell, i just heard a report recently that the 360 outsold the wii and ps3 sales put together? Everyone i know that doesnt have one is getting one this christmas. And yes the wii is extremely expensive considering you dont get a dvd player and the graphics are 5 years old.
Louis S. @ Dec 4th 2006 7:56PM
:0
http://www.google.com/trends?q=boobs%2C+wii&ctab=1&geo=all&date=2006-11
Nate @ Dec 4th 2006 7:56PM
I've had my 360 for over a year now, and I have to say the whole "the games are just the same with a prettier shell" argument couldn't be further from the truth.
There are definitely some geniuinely fun, new experiences, and IMO, it's becoming one of the top consoles in recent memory (just for how much fun I've had with it). Xbox Live (Private chat in different games, playing online, universal features), Live Arcade (Geometry Wars, Marble Blast, Lumines), exciting AAA games (Gears, Oblivion, CoD2, GRAW, Viva Pinata), etc. etc.
All of those games have made me say "Wow!"....with the 360, it's not just about pretty graphics, there is some great gameplay behind these games. The XBLA is a nice diversion, but for some like myself, I could spend hours on a game at the XBLA. Chatting and connecting with buddies has never been easier with Live. Everything is just so seamless, and the games are amazing....I'm not sure how anyone could pass up a 360. It's just a great console.
Sonic_Extreme @ Dec 4th 2006 9:12PM
If you look at the November sales for xbox in 01,02,03,04 they average around 470k. With 01 launch being the best one. In 05 I dont count it as 360 launched. So for them to estimate 700k? What are they smoking. Keeping pace at 470k and with 2 new heavy hitters I think is good. If you look at december sales for xbox for 01,02,03,04 they average 1mil. So for dec 06 they should hit 900k to 1 Mil. If they have made enough to sell. As for a comparison of the months after the first year 360 averages 200k while xbox only average maybe 140k. But PS2 seems to always sell. Lets Hope PS3 can do equal or be better than PS2 on montly to monthly comparisons. Thx XavierGill for the link. http://forum.pcvsconsole.com/viewthread.php?tid=11067
pimp_jester @ Dec 4th 2006 8:04PM
Of course Nintendo isn't having problems with their sales, which major console release in recent memory hasn't sold out of its stock?
This seems like a pointless argument at this point. How long did it take before one could find a 360 at any of the major stores? It's a matter of supply and demand, everyone wants the Wii and PS3 right now, since they're the new item to buy, hence they've sold out. The 360 is no longer that cool new toy, but still (if the 8 million number sticking in my head is right) has no less than 8 times the user base compared to the other two systems, because of the extra year of sales. Sony and Nintendo have to play catch-up, and until these consoles aren't selling out before any average Joe can get their hands on one, it's stupid to try and say that people are getting tired of the "same old game with a prettier shell", with regards to the 360.
Wait a year, when all three consoles are available to everyone, and then see how the sales stack up. That'll really reveal the staying power of these consoles.
Grant @ Dec 4th 2006 8:09PM
LOL @ 20.
apparently boobs still dominate in india and pakistan.
Rami @ Dec 4th 2006 8:09PM
This story is very suspicious. According to www.Nexgenwars.com the 360 has sold over 400k in the last week! Story's probably the work of some Sony fanboys...
Matt @ Dec 4th 2006 9:15PM
It would seem that consumers are holding out hopes for a Wii or PS3 for Christmas. This could be the reason why they have yet to turn, in desperation, to the Xbox 360.
Sean D. @ Dec 4th 2006 8:16PM
It's only the 5th, how can one predict what the holiday sales are going to be this early in the month? I won't even start to consider going Christmas shopping for at least another two weeks.
Scott Krueger @ Dec 4th 2006 8:20PM
Mario Elenes
The Numbers are bad Because the PS2 is still selling the Same amount as the 360.
All those PS2 Users will eventually buy a PS3 (When Price is in the Range they want to afford).
The 360 is just as expensive when you get all the Extras you need to actually use it, and the Backwards compatibility is absolutely awful. Over 1 year later and I still have to keep my Original XBox because not all my games are Backwards Compatible, I wanted to sell my original Xbox and could probably get a $100 or so, but Microsoft Dropped the ball on Backwards Compatibility.
Also, from what I heard the Next XBox Microsoft is going to do the Chip themselves, I guess my 360 games won't be compatible with that system either. Do yourself a Favor and Don't buy into the Microsoft Marketing Wagon.
socrates @ Dec 4th 2006 8:31PM
Aran - You're joking....right?!?
Not only was it generally incoherent, rife with misspellings, and the unforgivable use of the word "Ninty"...but it was entirely offtopic!
I'm going to hope you were kidding.
Anyways, report's a lie, I'm sure the 360 will have done very well in November. If 100,000 people manage to crash Amazon.com on the hopes of catching a discounted 360, then a fair number of those folks are going to pick one up. It was really a brilliant marketing trick - I had myself thinking "what if I could get a $100 360! What a deal!" A great way to talk yourself into thinking that you could use one. But then I remembered that I don't.
MaX PL @ Dec 4th 2006 8:33PM
scott krueger, go buy yourself a PS3 and stfu.
your arguement of ps2 users all getting ps3 is non-sense.
ps2 sold for dvd, games, hype. all of ps2s hype games, such as grand theft auto, final fantasy, resident evil, etc. are all being developed on other consoles. their exclusives are all but gone.
demand for high definition drives is far from the demand that was present for DVD. why? because consumers first need HDTVs.
hype? the only thing playstation has going for it is the sony branding. the playstation image is far less powerful than it was 6 years ago.
your backwards compatibility arguement for xbox is just as stupid. the only bc game i ever see anyone play is Halo 2. no one cares for old games when they have next generation titles at hand.
Milkshake @ Dec 4th 2006 8:46PM
@27
Thats my mistake I though I was posting my comment on an earlier topic on joystiq
Online demand for 360 surpasses PS3 ... Wii beats both
http://www.joystiq.com/2006/12/04/online-demand-for-360-surpasses-ps3-wii-beats-both/
But after spell checking the story I pasted it back in the wrong topic MY BAD.