Update 2: According to iTWire, Microsoft has denied the Smarthouse article, which claimed that the Xbox 360 was "dead" in Australia. Mariana Cidade, PR Manager of the entertainment and devices division for Microsoft Australia, noted that over 2 million pieces of Xbox 360 software have been sold in Australia and New Zealand, which is "nearly double [the Xbox 360's] next-gen competitors combined." Also noted was the Xbox 360's attach rate of 7 games per console in Australia, hardly the kind of sales garnered by a dead console. The data comes from GFK, a market research firm, and puts something of a damper on Smarthouse's already dubious (and anonymous) claims. Find our original post after the break.
Update: Added a link to the original Smarthouse article.
According to a recent news channel survey of 10 different Australian video games retailers (with over 2000 stores spread across the continent): "The Xbox 360 is dead. We are stocking it because of our relationship with Microsoft ..." If that's not a big statement to you, just wait, we've got more. The same retailer claims that the other two consoles are succeeding due to the appeal to children/women, and Blu-ray, respectively. They think the 360 brand can't really be redeemed after the RROD, and that the value proposition offered by Microsoft did not seem equal in comparison to the competition.
Furthermore, the Australian retailers are considering dropping the console from stores entirely: "We are stocking it because of our relationship with Microsoft, however all our energy and marketing is going into the PS3 and the Nintendo Wii unless Microsoft come up with something new or additional marketing dollars,." "Halo 3 was big on the Xbox but that was about it." "They have tried discounting and value add offers and even that is not working. We are even thinking of dumping the console all together."
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Reader Comments (Page 2 of 4)
4-06-2008 @ 11:02PM
luigi said...
Speaking as an Australian who works in retail I can say that this is a load of rubbish, We still sell plenty of 360s and as with most countries (except Japan) 360 software sales are way up on all competitors.
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4-07-2008 @ 5:01AM
Nick said...
Might want to check your facts again. Wii and PS3 are beating the 360 in Europe. Same goes for Japan. If things are turning sour for MS in Australia, then there goes another market. They without doubt have a stranglehold on the US though at the moment. 10 years ago this would have been a big problem. But today the US market is beating Japan in sales and margins. And that might be enough to win out in the end, even if the rest of the world is going a different direction.
4-06-2008 @ 11:08PM
Matt said...
Yeah, this is bull unless we actually get some numbers and some info on WHO said it and WHAT stores specifically are thinking of dropping it.
*NEWS FLASH*NEWS FLASH*
Sony is closing it's doors because Wii sales are too high. "They just raped us...we couldn't take it," one un-named high level Sony executive was quoted as saying. "Raped us good and hard."
This is non-news.
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4-06-2008 @ 11:49PM
Terrence Stasse said...
No one made up anything.
Follow the link.
http://www.smarthouse.com.au/Gaming/Industry/X7T4A4P6
4-07-2008 @ 12:29AM
Matt said...
I wasn't trying to imply that YOU fabricated anything. When you read the original article, ask yourself, "WHAT retailers is he talking about, WHO made these statements (specifically) about the 360 being "dead" and why do we care what he has to say?" It just says a Melbourne retailer. Well I've worked retail. So did that make me privy to some super-secret sales numbers that no one else knew? No. And the whole second part of the story is just Sony saying "Man, we're really stoked!!"
Where are the numbers that actually show the 360 seriously suffering in Australia compared to the PS3 and Wii? If they exist, then great! There is a story! But this is just unnamed people making stupid claims about what they THINK buyers want. It's based on a SURVEY of ten retailers operate 2,000 stores. Notice it doesn't say that they actually polled all 2,000 stores. Is there a link to the actual data?
I'm not trying to bash your POST, I'm saying the STORY is bogus and half-assed. The story is just link pandering.
4-06-2008 @ 11:10PM
Xav's boyfriend said...
Xav you're such a fag.
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4-06-2008 @ 11:21PM
BillyJoe said...
Who said what?
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4-06-2008 @ 11:51PM
Xav de Matos said...
Someone should probably google how IP's work.
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4-06-2008 @ 11:52PM
cdog said...
This story is teh bollocks
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4-07-2008 @ 12:09AM
David said...
That's why New Zealanders are much cooler.
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4-07-2008 @ 12:26AM
stinger503 said...
Anybody actually look into this? The entire site seems biased. Not to mention David Richards the author, who last year made this article titled "Why The Xbox 360 Failed" with "anonymous" asian manufacturers. Shoddy website at best.
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4-07-2008 @ 1:11AM
Tony said...
Yeah, I'd kind of like to hear more about that too. A lot of places are just popping this news up, which is great, but it would be nice to see some sort of commentary on how trustworthy this is.
4-07-2008 @ 1:16AM
stinger503 said...
Also if this site is so trustworthy than why not make the new article about Microsoft drive production companies making Blu-Ray drives for the next generation of Xbox a headline?
4-07-2008 @ 12:46AM
Paul said...
Hmmm, you know now that you mention it i do see alot more advertisments for PS#'s & Wii's than i do for 360.
Whatever...I'll just buy my games brand new online for $30 less like i always do.
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4-07-2008 @ 12:51AM
Deck said...
Roflz. This is full lulz.
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4-07-2008 @ 1:03AM
MDJ2010 said...
I love my 360, I could genuinely care less whether another country is enjoying it or not. Im just off to throw another shrimp on the barby.
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4-07-2008 @ 1:11AM
Stephen said...
I wonder what the customers think, I've ran into a lot of Aussies on Xbox Live so what the hell are the retailers talking about?
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4-07-2008 @ 1:12AM
Tony said...
Personally, I don't know what to think, but at the same time as long as developers continue to find a reason to put games on it where I live I can survive. That doesn't appear to be stopping.
I don't know much about the sales charts there, so beyond that I can't really say too much myself.
Either way, I've never understood Australia's love affair with Nintendo considering how horribly their local groups their treat their customers... the prices and delays are insane, far worse than Europe ever has to deal with.
Also, I get the image. It's getting the "boot". Italy looks like a boot. Clever lol.
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4-07-2008 @ 1:57AM
bigedd5000 said...
personally i am a hardcore 360 fanboy, and i could careless if Australians like it or not!!!!!!!!!!!
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4-07-2008 @ 3:45AM
Shane said...
ok i live in aus and i can tell u one thing 360 is not dieing.
my local JB hifi has 2 times the space for 360 then ps3 or wii.
also i no many people with 360s and only 2 with ps3s sooo i dont no what people are talking about dead :S
also i always see people in the 360 area and hardly in the ps3 area, and i no because i look in both.
and some of the retailers were most likely EB and Game who have never really had much 360 stuff to start with even when it just came out hence why i never buy my games from them.
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