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Paris Hilton holds an Xbox 360 goody bag  (Source: MSN Entertainment)
Xbox 360 price drop spurs hardware sales prior to Halo 3 launch

NPD Group released last week its video game sales data for the month of August. To no one’s surprise, the month once again belonged to Nintendo. The Wii and the DS continued to be top sellers, with Nintendo’s home console holding top spot at 403,600 units and the portable selling 383,000 units. 

The big change for August was Microsoft’s surge that put the Xbox 360 past the PS2 and PSP. During the month, the Xbox 360 sold 276,000 units – a considerable jump from July’s 170,000.

Sales of the Xbox 360 were clearly boosted by a price cut of the console enacted by Microsoft on August 8. Retail prices were cut by as much as $50, making the Premium console $349, the Elite at $449 and the Core at $279.

Gamers looking to buy into the Xbox 360’s impressive fall line-up may have found the price drop reason enough to pick up Microsoft’s machine. Madden NFL 08 for Xbox 360, which released mid-August, became the top selling game for the month with 896,600 units, beating the second best-selling PS2 version by over 250,000. 

The anticipated release of Halo 3 is another driver of Xbox 360 sales. Microsoft’s marketing machine is firing in all cylinders, devoting millions of dollars into cross-promotions to reach non-traditional gaming channels. As a first, 7-11 convenience stores are taking pre-orders for Halo 3 and will be selling the game at 12:01 A.M. on September 25. While at 7-11, gamers may also purchase Game Fuel, a limited-time Mountain Dew drink branded with Master Chief.

Sony’s hardware made up the latter half of NPD Groups sales list. The PlayStation 2 remained Sony’s top seller with 202,000 sold. The PSP, even only a month shy of release of the slimmer, lighter hardware managed to move 151,200 units. The PlayStation 3 maintained a second month of six-digit sales, with 130,600 sold.

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By slickr on 9/19/2007 11:06:10 PM , Rating: 2
You would think that Sony and Microsoft learned something from the years of selling consoles but they heaven't. What sells consoles is not the hardware in it, its the games what sells them. Ofcourse movie playability and few extra functions aren't bad but are not that essential.
Consoles are looking to get into the PC field as much as possible but forgeting that they are originally designed for playing games. For example even though the WII is only for games and has no powerful graphic chip it still outsells the competition. People like cheap gaming console they can play games on. If they wanted to watch movies, download content, surf the internet and create own profiles they would just use their PC.
This is where Sony failed most, beacose of their market domination with the PS and PS2 they forgot the roots of the gaming console. But the company that started all this is actually Microsoft, in an effort to gain more market share they pumped up the graphics and processing power of theit Xbox360 and added more functionality for it. Sony like blinded people took the bait and went for expensive feature rich and powerful console rather than just making a better gaming console.
They may have realised by now or may have not but its certain that they are looking to making more games their own console only.

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
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