
Microsoft
announced at the beginning of this year that it had reduced its shipment goal for the fiscal year to 12 million units, down from 13-15 million units. Speaking to gamesindustry.biz about the
new 360 warranty,
Peter Moore has confirmed that Microsoft has missed the target of 12 million units. The company has sold roughly 11.6 million units, missing its goal by 400,000 units. Despite this, Moore states that Microsoft feels "really good" about the state of the Xbox. In particular, he emphasizes Microsoft's holiday lineup, and notes that it will be featured heavily at E3 next week.
Reader Comments (Page 1 of 2)
7-06-2007 @ 2:42PM
Joshua said...
I'm sure that good feeling comes from knowing that Halo 3 is going to sell systems. The new warranty helps those on the fence a bit as well.
I doubt they are going to release the new 65nm system but I'm sure there are still a lot of folks waiting for that to happen. I wish they would release it prior to Halo 3. I'm just ready to buy another unit and I'm not planning on an purchase until they switch.
Also, I take it that the Chat board accessory will hit the news again come E3? I would hope that that accessory wouldn't be considered a big deal but I'm sure to them it is.
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7-06-2007 @ 2:42PM
Intentless said...
I don't think missing a goal by .4 is all that big a deal...
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7-06-2007 @ 2:46PM
Vargas said...
I think these missed target goals are a clear sign MS is overpriced. They will not be able to significantly expand their market share further without cutting the price. $400 bucks is still a lot of money for an entertainment device. If they match the rumored Sony drop of $100 bucks and drop the Core combined with the stellar fall software line up I think MS will soon be annoucing they are exceeding targets not missing them. A $300 dollar premium system and $380 dollar Elite would defintely move some kits, especially with the new warrenty.
If MS got really aggressive and matched Nintendo at $250 for the premium they might be able to knock out Sony completely. Don't see that happening though with a $1Billion dollar write down for the new warrenty.
Words to live by from the great John Wooden "If you don't have time to do it right the first time when will you have time to do it again" Or money to do it again in MS case.
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7-06-2007 @ 2:55PM
Bravo6 said...
The HW issues definitely hurt them lately.
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7-06-2007 @ 2:56PM
Joshua said...
It's a big deal when you are trying to make profit goals on a product that has just recently started to actually make a profit.
You can only bleed cash for so long. They need to hit those goals not only for profit but also for the investors.
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7-06-2007 @ 2:57PM
Scott said...
Drop the prices by $100 across the board and watch the 360 purchases soar with the combination of the Fall line-up.
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7-06-2007 @ 3:05PM
Who Flang Poo said...
I honestly think Microsoft will do fine just having the 3 year warrenty, this is because people wil feel more secure about their 360s and plus look at the fricken holiday line up, and Halo 3 the biggest fricken game ever, but if they really wanted to pound the snot of of the Gaystation 3 they could have price drops a month before Halo 3 hits stores then 360 will be killin Wii n Gaystation 3 by a lot.
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7-06-2007 @ 3:09PM
Who Flang Poo said...
I honestly think Microsoft will do fine just having the 3
year
warrenty, this is because people wil feel more secure about their
360s and plus look at their fricken holiday line up, and Halo 3 the
biggest fricken game ever, but if they really wanted to pound the
snot of of the Gaystation 3 they could have price drops a month
before Halo 3 hits stores then 360 will be killin Wii n Gaystation 3
by a lot.
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7-06-2007 @ 3:13PM
Who Flang Poo said...
Srry for the double post.
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7-06-2007 @ 3:23PM
DjDATZ said...
I dont think it matters that much...
I'm with the people here...drop the 360 price a month or a little bit more before Halo 3 is realeased, bundle in a/some good games, and you will see the 360 take off. And if for that price you can match the Wii's price with the premium...you're Gold. (Pun intended)
C'mon MS, take a couple more hits for us, and you WILL be rewarded.
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7-06-2007 @ 3:24PM
JohnMatZ said...
Intentless wrote I don't think missing a goal by .4 is all that big a deal...
a minimum of 280 Million dollars (console + 5 games) in revenue is a huge deal. It would have made that 1.15 billion dollar charge off less of a hit.
I know they took the charge so that they can show Fiscal 2008 profitable on paper but I do hope they iron out the Hardware problems completely.
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7-06-2007 @ 3:24PM
DjDATZ said...
Plus with them not being able to keep up with Elite demand in June, I think that hurt a bit, drop that price while the demand is still high, and the POS3 doesn't stand a chance.
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7-06-2007 @ 3:26PM
Tony said...
I definitely know a decent amount of people who are scared off due to the hardware issues. The warranty will help, but most important MS seems to be giving the impression that they've been fixing this in the newest units. We'll see how that goes.
I think it's really important to note that to a LOT of people -- despite things like Gears of War -- this system doesn't have an obvious killer app yet. It's gotten up to almost 12,000,000 without Halo 3 and GTA IV, which I don't think is much to scoff at.
What it really needs is something as ridiculously accessible as Wii Sports, because at this point it seems like the Wii is seen less as a multi-title system to a LOT of people, but instead as a device to play things like Wii Sports. It really speaks of the power of the game, I'd say.
360 doesn't really have anything like that. Clearly there's more family oriented games, but something like Viva Pinata is barely comparable and certainly more complex.
Personally, I think they should drop the core entirely, move the Premium down to that price and stuff in a game people would actually want.
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7-06-2007 @ 3:35PM
Joshua said...
I don't see my Wii as something to play Wii Sports on. I see it as something to play games from my childhood on.
And since that is about the only enjoyment I have with it I also see me trying to sell it currently.
They do need to market to people that aren't FPS fans or 'hardcore' or however you want to look at action game fans. They have more to gain by picking up the casual crowd than they do in Japan.
The problem is the casual crowd isn't going to buy a system at the current price. Offer a core for about $250 and you might see it happen.
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7-06-2007 @ 3:37PM
PS3FANBOYTROLL said...
...
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7-06-2007 @ 3:42PM
aZTEKv2 said...
In the mindset of investors and Microsoft, I would imagine that 400k is a significant loss considering their goal was readjusted to a more reasonable target. I'm sure jobs were at stake, etc etc but in order to maintain a competitive edge Moore has to release an optimistic statement to keep the ball rolling.
The commitment of extending the warranty to 3 years makes the price drop announcement less likely to occur, although as many have mentioned a price drop is a great incentive to those still contemplating on which system to purchase. Perhaps not a $100 price drop but a $50 sounds reasonable and justifiable for the core & premium SKU's. The Elite is still selling very well, selling at an avg of $490.00 +SH on eBay. The demand is definitely still there.
As great titles keep arriving (Eternal Sonata, GTA.IV, H3, just to name a few) the $charts will definitely see an increase.
The whole topic of Wii,PS3,360 pricing has been covered backwards and forwards but would like to add an experience I recently had.
I just purchased a Wii and the $250 tag is very misleading... after purchasing I realized that if I wanted to play Mario Party 8, Wii Sports, those type of games I needed to purchase additional controllers. @ $40 each = $120 + a classic controller to play the Virtual Console Games ($20) + an additional nunchuck for some games ($20) = $400 already spent on hardware.
*Also purchased a $15 HD cable to crisper images.
The Wii is a party game IMO and see those purchases as justifiable to get the full benefit of the system. So in closing, if the system were to drop to the nice $250 range for the core, when Mommy Mary goes to buy that Wii and sees its sold out, the 360 in stock for comfort :-p
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7-06-2007 @ 3:43PM
Richard said...
take into account, if you think the 360 is overpriced, the apple tv is 300 bucks but it doesn't do half as much stuff as the 360.
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7-06-2007 @ 4:15PM
Who Flang Poo said...
Wow, im surprised the Sony defence force hasn't invaded this post yet with their bullshit and cry baby comments.
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7-06-2007 @ 4:23PM
Murrytmds said...
Sure they missed their target goal by .4 million.. when you dont consider that a couple million of those units 'sold' were returned as defective and then subsequently replaced with new units. at least 3 of that 11.6 mill are from me -_-
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7-06-2007 @ 4:24PM
Mark said...
http://www.vgchartz.com/ has them a 10 million. Who should I trust?
And as far as $400 is a lot... Own a home and a car and then $400 seems like nothing. At least once a year I spend over $400 on one of my cars in a single shot. That's not including payments, gas and insurance. The house is the same, but with a zero on the end.
$400 once every 4-5 years for entertainment is nothing in comparison.
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