The Xbox 360 is winning the console war, or at least it is according to Microsoft. Speaking to MCV, the vice-president of Microsoft's European Interactive Entertainment division stated that the company was generating 42% of the revenue from the current generation of console and game sales.
The announcement comes at the same time as the price-drop for the 360 SKUs in Europe, which VP Chris Lewis feels was only possible after securing a sizable hold on the market. The market revenue figures are based on sales of consoles, games, peripherals, and online services like Xbox Live, and only figure in the current generation of video games (the continued strong sales of PS2 software, for example, are not included). Worldwide, Microsoft also claims an installed user base of 17.7 million, though no word if that number accounts for red-ringed consoles.
Reader Comments (59)
Posted: Mar 10th 2008 6:12PM (Unverified) said
Lower number of units sold * high revenue on squeezing customers for everything from multiplayer to hard discs = high revenues
high revenues - high costs due to shoddy engineering = loss
Interesting how MS always mentions the software tie-in ratio, because thats another case of MS bull - its defined as new software sold / new hardware sold.
Thats a crap measure, because take a console that has a one-year lead and an install abse of 9mn - suppose they sell just 1mn new units and out of the 10mn owners, just 20% buy a new game in this month - thats 2mn games / 1mn units = ratio of 2
Now take aother new console with an install base of just 2mn, but sells 2mn new units. Suppose 50% of the 4mn owners buy one game in this month - thats an attach ratio of 2mn / 2mn = 1
Thus the second console, which is selling more new consiles, which has more games sold per user, will still have a lower atach rate - because this ratio always favours the console with a larger installed base.
Any guesses why MS (which, surprise, came out first and has a lead in install base) always uses this ratio?
high revenues - high costs due to shoddy engineering = loss
Interesting how MS always mentions the software tie-in ratio, because thats another case of MS bull - its defined as new software sold / new hardware sold.
Thats a crap measure, because take a console that has a one-year lead and an install abse of 9mn - suppose they sell just 1mn new units and out of the 10mn owners, just 20% buy a new game in this month - thats 2mn games / 1mn units = ratio of 2
Now take aother new console with an install base of just 2mn, but sells 2mn new units. Suppose 50% of the 4mn owners buy one game in this month - thats an attach ratio of 2mn / 2mn = 1
Thus the second console, which is selling more new consiles, which has more games sold per user, will still have a lower atach rate - because this ratio always favours the console with a larger installed base.
Any guesses why MS (which, surprise, came out first and has a lead in install base) always uses this ratio?
Posted: Mar 10th 2008 6:14PM (Unverified) said
There's three kinds of lies: lies, damn lies, and statistics.
This is the best generation for gaming no matter which console you have (even the PS2, DS, and PSP). Competition is keeping us all on our toes, and the consumer gets to decide which features of which consoles he likes best. You choose yours, I'll choose mine, and we'll all reap the rewards.
I do believe that the 360 bringing in more software revenue than the Wii and PS3. That much should be obvious to most people who keep up on sales numbers. However, the importance of that fact is far less obvious.
This is the best generation for gaming no matter which console you have (even the PS2, DS, and PSP). Competition is keeping us all on our toes, and the consumer gets to decide which features of which consoles he likes best. You choose yours, I'll choose mine, and we'll all reap the rewards.
I do believe that the 360 bringing in more software revenue than the Wii and PS3. That much should be obvious to most people who keep up on sales numbers. However, the importance of that fact is far less obvious.
Posted: Mar 11th 2008 6:17AM (Unverified) said
Considering the Wii is a Gamecube with a Wii Mote, MS's number is probably higher.
Posted: Mar 10th 2008 6:56PM rabidmonkeyman said
now they just need to put that revenue towards replacing old junk parts in xbox's that come in for repair, rather then just fixing the problem and hoping it doesnt happen again, im on my 4th box and im tired of this crap
Posted: Mar 10th 2008 7:11PM (Unverified) said
I sure don't regret buying a 360 2 years ago (still works like a beauty btw), over 25 great games for it already and 12 more planed for release this year alone, thanks MS.
Posted: Mar 10th 2008 7:38PM (Unverified) said
Is this like that silly story they came out with last month, that they had 360 supply problems, because it's so popular, so when the PS3 kicks it's ass (again) in NPD data later this week, they have a feeble excuse to fall back on..
Microsoft, your lies are so transparant, only 17million idiots would fall for them...
Microsoft, your lies are so transparant, only 17million idiots would fall for them...
Posted: Mar 10th 2008 10:29PM (Unverified) said
A high attach-rate, subscription fees and high peripheral cost (HDD anyone?) lead the charge. I also cannot help but wonder how many people have bought multiple machines. If anything this article only states those that own a 360 drop a fuck-load of coin on the platform. It doesn't necessarily mean the picture of growth and install base size is as "rosy". A lot of this revenue comes from existing clients, though that's not at all a bad thing. Money is money after all.
Posted: Mar 10th 2008 11:56PM R Planteer said
sigh. bottom line is every console has pluses and minuses, no matter how you spin it. just like last generation, its a matter of personal preference. And in the end, (figuratively speaking) its all three companies sipping expensive champagne laughing at us fighting over who its better to give our money to.
Posted: Mar 11th 2008 1:11PM (Unverified) said
w00t
Featured Stories
Super Joystiq Podcast 004: 38 Studios meltdown, Gravity Rush, Civilization 5: Gods & Kings, Dragon's Dogma
Posted on May 25th 2012 3:30PM



