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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 joemoedee on 5/23/2008 10:16:29 AM , Rating: 1
quote:
..which is simply untrue. The PS3 and especially the Wii are leading the Xbox 360 in all territories outside the U.S.


It's proof that you can twist just about any number to make it work to your advantage.

It's a marathon race. Currently, the Wii is leading. 360 is second, PS3 is gaining on them.

MS's strong places are North America and the United Kingdom.

The 360 has sold well in NA, however, the sales rate is not much better than what the original Xbox accomplished.

The questions that MS needs to focus on, to "win"...

How many PS2 or GC owners have converted to 360 owners? -- Xbox sold 24 million, give or take. PS2 looking like it will do 120 million, maybe more. Obviously some owned both, but even if EVERY PS2 owner also owned an Xbox, that's still roughly 100 million that they did not sell to, give or take.

How many did not own a 6th gen console that subsequently purchased the 360? -- I'm certain the Wii is going to own this, but they do need to attract the not "typical gamer" to reach such a lofty sales goal.

How many 360 owners were/are owners of the original Xbox? -- We know there's a fair share of MS "fanboys" out there. MS needs to keep them happy as they will be their staunchest supporters.

... For Sony to win?

Keep their current installed base eating the Sony dogfood. That is enough to "win".

Nintendo?

Obviously keep on their current pace and they'll "win". To do so, they'll have to continue to bring out the mass market games to cover the diverse userbase, but also do enough to keep the more "hardcore" gamers entertained. (Zelda, Metroid, Mario, and actual good 3rd party games) As the other two systems come down in price, I do believe you will see a slowing in Wii system sales. At that point, it will be all on the software to maintain the pace.

I do think the market can successfully support all three consoles, but feel it's going to be Wii/PS3 battling for number 1, with the 360 in third in total system sales when it's all said and done. Also a third place finish should not be considered a failure, as long as it doesn't go all Dreamcast on us. :)


"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer














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