Looks like Robbie Bach was right. Remember when we reported a few weeks back that Halo 3 pre-orders had topped 4 million at GameStop? It looks like analysts are paying close attention to that number and are now saying that Halo 3 is shaping up to do some very nice business for Microsoft. While this isn't exactly a shock, we didn't realize just how nice that business is expected to be. GameSpot reports that Goldman-Sachs expects Halo 3 to reach $170 million in sales during its first week of availability, with more than 4.2 million copies shipped to retail. Given Goldman-Sachs estimate that there will be 13.2 million Xbox 360s sold by September, that's 1 copy of Halo 3 for every 3 Xbox 360s in the world. Furthermore, the group notes that the $170 million estimate may be as much as $50 million too low, depending on the actual Xbox 360 install base. Finally, if these estimates prove true, Halo 3 could very likely propel the Xbox into its first profitable quarter ever (it just so happens that Halo 3 debuts right at the end of Microsoft's first fiscal quarter for 2008). After nearly 6 years in the red, we imagine the Xbox Division has a mighty big circle around September 25 on the office calendar.
[Via GameStooge]
Reader Comments (Page 1 of 1)
5-25-2007 @ 11:49AM
Tony said...
If 4 million were pre-ordered just at Gamestop, isn't 4.2 million shipped to retailers going to be awfully low...?
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5-25-2007 @ 12:07PM
Jeff said...
I though the phrase was "'out of' the black". Is that a mistake or am I misinformed.
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5-25-2007 @ 12:18PM
Justin U said...
Hope that ring around September 25th isn't red...
I Joke because I love.
Can't wait any longer. College is going to SUCK with Halo 3 there.
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5-25-2007 @ 12:19PM
0ldb0y said...
"Into the black" is correct. Convention in accounting is that positive numbers are in black ink, and negative numbers (losses) are in red.
Notice that Rings of Death are also red. Mayhaps the Xbox division hitting profitability, suddenly all Xbox360s suddenly stop malfunctioning? Mayhaps not.
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5-25-2007 @ 12:24PM
Toph said...
Considering Halo 2 made $120 in one night, the most expensive copy was $60..oh, yeah..Microsoft will be making BUKU bucks come September 25th!
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5-25-2007 @ 12:25PM
Toph said...
..That was $120 MILLION...
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5-25-2007 @ 12:29PM
George said...
The phrase is "out of the RED", or "into the black". Red is a deficit, black is a gain.
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5-25-2007 @ 12:39PM
DjDATZ said...
The post is correct...the division has been at a loss for the past 6 years (in the red) and now it might finally become profitable (go into the black).
HALO 3 and Xbox 360 FTW BITCHES!!!
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5-25-2007 @ 12:51PM
Grindstone said...
Admittedly, I am a liberal arts major and therefore, not that good at math. But tell me this, 4.2 million preorders multiplied by $60 does not equal $170 million, does it? ($252 million) And also, I'd say that at least 20 - 25% didn't preorder the $60 version. Perhaps he is deducting manufacturing costs, distrubiution, and the retailer's cut. Still, that's not what is implied in the article -- total sales.
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5-25-2007 @ 12:55PM
Jonah Falcon said...
Microsoft: All your base are now belong to us.
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5-25-2007 @ 12:59PM
Jeff said...
Grindstone, you say 'the 60 dollar version' like it's the more expensive of the two. (three, actually) I could be misunderstanding you but that is the impression I'm getting. So in that case, I need to make clear the 60 dollar version is the cheapest, followed by the 70 and 130 dollar versions. Also, those 4 million are only from Gamestop. There are many more places that sell and offer preorders. Don't forget, some people don't preorder. There will be more sales than preorders.
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5-25-2007 @ 1:00PM
Jeff said...
oh.... I just realized I rad his numbers in reverse. Thought he was doubting the high sales claim. ignore me**
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5-25-2007 @ 1:34PM
Spitkicker said...
Of course it will...it's Halo freaking 3!!!!
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5-25-2007 @ 2:33PM
0ldb0y said...
@Grindstone:
I think "$170 million in sales during its first week" and "4.2 million copies shipped to retail" are two independent clauses, and would have been less confusing had they been separated into two sentences.
$170mm is an estimate of first week sales.
4.2mm units is the quantity being provided at launch.
No calculation relationship between the two.
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5-25-2007 @ 3:24PM
James said...
Wait, so Gamestop alone sold 4 million preorders, but they're only shipping 4.2 million in the initial batch? Who's getting screwed out of a game, then?
Not that it much matters to me -- until they make age-restricted servers (which they all should be, since the game is M-rated), they're not getting my money.
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5-25-2007 @ 4:13PM
Sammy D Kat said...
I will be staying home with a bad case of the flu on Sept. 25. In fact, I may be out for the whole week.
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5-25-2007 @ 11:51PM
kevin said...
Well I for one and I know many others will be getting it because of the online multiplayer... I mean thats a crap load of people who are gonna be on live playing this... I am probably like a million other people who have played Halo at a friends house a couple times for the multiplayer but thats it... it is fun and just imagining the swarm online when part 3 comes out tickles me!
Halo is the must have game for 360 as is gears so obviously this is a system mover...
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