Print 111 comment(s) - last by Clauzii.. on May 26 at 11:41 AM

Microsoft resets finish line to 100 million after winning the 10 million unit dash

According to the latest NPD console sales numbers, Microsoft holds the lead in terms of total current-generation console sales in the U.S. with 10 million Xbox 360 sold. Microsoft touted this number as being particularly significant as it believes the first to this milestone wins the generation overall.

“This year will be the largest in the history of the video game industry, with Xbox 360 leading the charge in the U.S. and abroad,” said Don Mattrick, senior vice president of the Interactive Entertainment Business in the Entertainment and Devices Division at Microsoft. “History has shown us that the first company to reach 10 million in console sales wins the generation battle. We are uniquely positioned to set a new benchmark for the industry.”

More than 19 million Xbox 360 consoles have sold worldwide – a number already eclipsed by the Nintendo Wii on the global scale with 25 million total units sold. The Wii with 8.8 million in the U.S. is also rapidly gaining on Xbox 360 and is selling at a quicker pace, despite having launched a year after Microsoft’s console. The PlayStation 3 has sold 4.1 million in the U.S., with a total of more than 12 million worldwide.

One area that the Xbox 360 is the undisputed leader in is the online space, where there are currently more than 12 million Xbox Live subscribers.

“Perhaps more important is the Xbox 360 worldwide online base – 12 million Xbox Live gamers is the largest community in the connected console games sector, which represents the greatest growth opportunity in the console market and where Microsoft has been the leader for two generations,” commented Billy Pidgeon, research manager at IDC.

With the 10 million mark under its belt, Microsoft appears to now be resetting the finish line at 100 million. Microsoft Games Studios corporate VP Shane Kim said in a Wired|Game|Life interview that the console war will finally be decided “When somebody's well on their way to reaching 100 million units.”

Microsoft may have a problem reaching the 100 million mark ahead of its competitors if the Japanese market isn’t buying the Xbox 360, where the console has yet to sell 1 million units. “Well, we've always known that we weren't going to win in Japan, right?,” Kim replied. “And I think we can build a very good business, an exciting business with a pretty big installed base with success in places like North America and Europe. Even though you may not think it's big numbers, we're actually strong in Latin America as well. Canada's been a big market for us as well. So there are ways to get the scale.”

“Now, if you don't get 10 million units in Japan, can you get to 100 million units overall? I'd love to get 90 million units and have that problem. That's what we're really trying to focus on,” Kim added. “I think it's way too early to declare a winner.”

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RE: Yeah right
By rudy on 5/22/2008 11:02:01 PM , Rating: 4
none of this matters all 3 companies are already profitable in a short time. There will be no loser the gaming market is just that huge now. The real question is when will more companies realize that there is probably still more room and jump into the market. It is amazing to think that in past console wars at least 1 always got beat down to the point you almost never heard about it but after years these 3 are still selling like crazy and becoming something you can find on almost every block. And I imagine they will all do great through out their life since none are stuck in a money losing position.

RE: Yeah right
By Mitch101 on 5/23/2008 12:43:53 AM , Rating: 4
I agree cant we be happy there are 3 game console companies. There are hardly 3 sound card producers, video card companies, processor companies, etc any more.

I kind of feel each one of the consoles serves a certain demographic instead of being an end all be all specific winner. To each thier own and Game On.

RE: Yeah right
By StevoLincolnite on 5/23/2008 1:19:07 AM , Rating: 3
There are 3 CPU Companies in the x86 arena, Intel, AMD and Via.
There are also 4 Graphics card company's for the Desktop, they are Matrox, nVidia, ATI/AMD and S3, with Intel soon to jump on board the Discreet Graphics card market.

Sound Card Producers are:
Creative, C-Media, Via and Realtek.

I kind of feel each one of the consoles serves a certain demographic instead of being an end all be all specific winner. To each thier own and Game On.

I agree, I have all 3 consoles, but because of my mature age, I find myself playing on the Xbox 360 rather than the Wii more often than not, unless I have friends over.
So far, the games I have on the 360 are GTA IV, Naruto: Rise of the Ninja, Assassins Creed, Gears of War, Halo 3, Turok, Perfect Dark Zero, CoD4 and a few others, where as the Wii I have party games like Mario Kart, Wii Sports, and the PS3 is just a great HTPC, but I will be picking up games like Final Fantasy for it in the future.

The thing is, the Wii is selling rather quickly, the PS3 is gaining momentum, and the Xbox 360 has a larger game attachment rate than the other consoles.

Personally it's a win/win situation for the consumers, as we get more choice, and thats always a good thing, and because of the fierce competition between the company's they are constantly adding firmware updates to enable new features, something that never happened in the previous generations.

RE: Yeah right
By TheOneStorm on 5/23/2008 8:18:40 AM , Rating: 2
Don't forget Razer sound cards... :)

RE: Yeah right
By Rouke on 5/23/2008 10:00:02 AM , Rating: 3
I don't agree with you concerning Hardware producing:

AMD & Intel are indeed CPU companies. But Via can't be taken seriously anymore. Take IBM instead (all consoles have one) Supercomputers as well.

And in the Graphics Arena contemplating power and market-ratio: Intel is the biggest allready: office on-chip units.
Matrox & S3 chips can't be taken seriously there either.

concerning your story on the console race I think your partilly right..

"We are going to continue to work with them to make sure they understand the reality of the Internet.  A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis

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