670°

360 suffers worst quarter in 2 years

A look at the 360's sales since the September 08 price cut.

The recent sales boost Microsoft's Xbox 360 console has enjoyed since a drastic price cut in September of last year seems to have fizzled out as a result of stiff competition and the current worldwide economic recession take their toll on the once considered "recession proof" videogames industry. Microsoft reported during their fiscal year end update today, 360 sales for the 4th quarter amounted to only 1.2 million units, it's lowest quarter since 2007 when the console sold 0.7 million units for the 3 month period ending June 30th.

Microsoft's Xbox 360 console had enjoyed a sales boost versus its competition when they announced lower prices on all 3 available 360 versions in September of 2008. Prior to that, 360 sales growth had remained flat year over year in their primary, US market to NPD data which tracks sales data in the US. The price cut came in the nick of time as 360 sales trailed their closest rival, Sony's Playstation 3, by over a million consoles worldwide for the 2008 calendar year according to Sony and Microsoft's official numbers. With the price cut in effect, 360 sales and a strong holiday season enabled Microsoft's games console to finish the 2008 calendar year in a virtual tie with Sony's PS3.

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smgamers.com
darthv725389d ago

Is there any reason to not think that this time of year sales are generally down? True the 360 has sold less in this time but not to the same degree of the competition.

socomnick5389d ago

Hmm I was under the impression that the 360 was up in sales by like 25 percent last month. :/

Anon19745389d ago (Edited 5389d ago )

They kinda talk about that. Sales aren't always down this time of year, and a drop this significant would certainly seem newsworthy considering the amount of "PS3/Wii sales are poor" articles we've been subjected to as of late. This is simply telling the other side of the story, and doesn't have anything to do with Micrsoft's greater fiscal release.

How some can figure that MS's fiscal release and this article looking at 360 sales are one in the same defies logic.

Edit above: Indeed, that's the PR microsoft was spinning. May NPD numbers put them up in the US 22% for the first 5 months of the year. Clearly this wasn't the entire story.

Anon19745389d ago

Unless of course it's about PS3 and Wii slowing sales.
The article was approved, then failed. The first time it was failed because it was allegedly a dupe of MS's press release (how anyone can mistake and article about sales and MS's fiscal press release is beyond me) the second time it was failed because it was the same as the first time it failed.
This is madness...

gambare5389d ago (Edited 5389d ago )

"Hmm I was under the impression that the 360 was up in sales by like 25 percent last month. :/ "

Sales doesn't reflect earnings, you can have sales with loses.

anyway all the industry had a hard hit this year but the 360 is the cheapest console and that will be reflected in sales, but just sales.

Snake Raiser5389d ago

To be fair...all the consoles did. Then again, I think this would be a good time for Sony to cut the price for the PS3 and try to gain some momentum on MS.

Kill Crow5389d ago

spam for your pro PS3 blog site ....

El Botto5389d ago (Edited 5389d ago )

Why, yes, smart ass. In case it didnt cross your obviously brilliant mind, the 360 had a pricecut down to 199 making it the cheapest console of the three.

This pricecut was done to increase market share at the costs of lower margins. They have sacrificed their margin so to speak in an suicide move. I stated this months ago.

And yesterday this was confirmed. What was also confirmed, is that the TACTIC has FAILED. They should be having major boosts compared to PS3 and Wii. But no, they arent. This means only one thing. When the spike increased last year, they werent attracting new consumers and they werent increasing their marketshare. They were BORROWING from the future quarters (higher sales now, but lower sales in the future. Sum = zero aka known as failure.

The bottomline is that the 360 is dead. They arent gaining much despite their suicidal efforts.

Sony and Nintendo have increased their moats in the words of Buffet. And Buffet once said "throwing billions of dollars against Coca Cola, I can still not think of a way to take it down".

Well, MS is experiencing the same thing with Sony's PS3. Lmao. 9 billion in red thrown against the PS3. And the PS3 is still doing better.

+ Show (4) more repliesLast reply 5389d ago
Simon_Brezhnev5389d ago

if this was a PS3 article & even if its a duplicate it will get approved quicker then lightening

gaffyh5389d ago

You're probably right, but still this is a flamebait article, and I'd like to think that some people have more class than the fanboys that approve these articles.

Of course MS had it's worst time, we're in a recession, I'd be surprised if any company is doing better than they were last year.

iChaos Amongus5389d ago

There should be PS3 articles arriving like this very soon, surely you understand Xbox 360 is not the only console being hurt by the recession. Wii and PS3 are also and considering PS3's price...its suffering the most.

Pandemic5389d ago

Pshh, look at the approvals, it's all people who have votes of 1. -_-

indysurfn5389d ago

If the worst Microsoft has is making only 100plus million dollars in two years during the worst recession since 1929, then who is to complain!? Certainly not a actual money losing Sony fantoy, (I hate hypocrites ). Too bad Sony IS actually losing money of the big three, they are the only losers. Poor Microsoft, they said the worst is behind them (only made 3.99 billion this last quarter in profits). I guess that is enough to make Sony cry with envy. A few billion put them on junk credit watch. What is Microsoft going to do with all that cash? I know they are talking about buying Yahoo again as of Thursday evening. But that is not enough for all that cash. Wonder if they would bother buying Sony. NAH! Too easy.

mynd5389d ago (Edited 5389d ago )

I'll tell you why this article is stupid:-

"Microsoft’s Xbox 360 console had enjoyed a sales boost versus its competition when they announced lower prices on all 3 available 360 versions in September of 2008"

- Had? We dont know if it is still having a boost "versus it's competition." Sony's numbers arent out yet.

He compares it to Sonys console, then to itself pre economic meltdown.
Clever stuff, and pointless.
Wait till Sonys numbers come out and we see who has feared better this 1/4.

Willio5389d ago

I don't really understand your logic but your last statement doesnt make any sense. Sony is actually bigger than MS in the stock exchange.

5389d ago
IdleLeeSiuLung5389d ago

There is a lot of mixed signals in the data, but all things considered Xbox division (E&D) came away pretty unscathed.

I guess MS have a year on year increase in console unit sales, but not quarterly...... A positive income is more than any business can really ask for unless you are Nintendo that is raking in money even with an expected decline in profit.

Thugbot1875389d ago

Stupid article, no one is doing well.

iChaos Amongus5389d ago

I saw somebody post it not too long ago and found it very interesting, it's the Forbes Global 2000 where they show the top 2,000 corporations in the world and their Market Value or otherwords "how much they are worth as a whole if bought today".

Microsoft is the 6th most valuable corporation in the world worth 143.58 billion in value.

Nintendo is worth 41.25 billion in market value.

Here you can see Microsoft and Nintendo.
http://www.forbes.com/lists...

Sony is worth 17.12 billion in market value.
http://www.forbes.com/lists...

cherrypie5389d ago

The division is more than just Xbox 360.

AND, sales are up 35% year-over-year.

So, their's a great chance the losses are non-Xbox 360 related.

morkendo5389d ago (Edited 5389d ago )

360 sales and a strong holiday season enabled Microsoft's games console to finish the 2008 calendar year in a virtual tie with Sony's PS3.

if that statement is true "virtually TIE" with ps3 then why are all the 360 fanboys whining about ps3 going to fail or its dead like dreamcast?? IMO they both are doing poorly for now even when the holidays hit Im sure both will get hot sales after ps3 lower its price and MS will copy and compete with price cut and both slump back to weak sales after holiday.
in the meantime this just in : a cat head was stuck in mrs. crabtree furnace. details at 11

shadow27975389d ago

^ That is interesting, I'm not really surprised by Microsoft. But Nintendo is very surprising since they only deal in the videogame market. However, both the Wii and the DS are very successful right now, so I'm sure that has a lot to do with it.

Did you also happen to notice that both Sony's sales and assets are higher than Microsoft's (though profits are much lower)? Perhaps that's only surprising to me. Now that I think about it, Sony does have a lot of products. But I still find that surprising for some reason.

IdleLeeSiuLung5389d ago (Edited 5389d ago )

Did you also notice that the profit margin at MS overall is extremely high relative to any company on that list.

I'm also surprised at the actual market value of Sony being relatively small, but assume it is due to large debt considering the large amount of assets.

Immortal Kaim5389d ago

LOL Darkride, you're really predictable. Looking forward to the same reports about Sony's and Nintendo's quarters ;)

king dong35389d ago

leave it out

we know you're a sony fanboy on some crusade to make things better for you beloved sony, but ffs when writing a slanted fanboy blog atleast get some facts right.

npd has just shown that the 360 was the only console to increase it's year over year. and recently in the UK, the worlds second biggest gaming market, the 360 has outsold the wii for the last six months.

truely, you are pathetic, and your blog is just another waste of time cheerleading piece of sh!t especially wrote for blogs4fanboys.

Syronicus5389d ago

Especially considering that the 360 has some great games to offer and is also the cheapest console on the market and it still can't sell like the Wii. You would think that in time of recession a console as cheap as the 360 would be selling well or at least better than this. I'm not saying it is selling horribly but it is not selling like the Wii and yet it is the cheapest of the two.

dcbronco5388d ago

Though the Sony fanboys will disagree with this, the funny thing is that just two years ago, Sony's market cap was much higher than Nintendo's. And the fanboys don't even realize that while they say Microsoft is having problems, the reality is that Sony has lost over half it's value. Also they miss the fact that the Xbox's division was actually profitable for the year. Sony's games division wasn't. And neither was Sony as a company.

+ Show (16) more repliesLast reply 5388d ago
ultimolu5389d ago

Can someone provide a link which shows this is a duplicate?

meepmoopmeep5389d ago (Edited 5389d ago )

i dunno, the other one was reporting the fiscal year.
this one is an article of that.

it's not necessarily a duplicate, but an article of a recent story.
it doesn't really bring anything new though.

Ju5389d ago

Just go check who reported this duplicate already. LOL

I did not murder him5389d ago (Edited 5389d ago )

Who approved is more interesting.

ultimolu5389d ago (Edited 5389d ago )

Lol and the disagrees. Really, it's not my fault that this is happening. o_o

And...

http://www.gamasutra.com/ph...

Goodbye.

II Necroplasm II5389d ago

Now ultimoludpu, show Sony's PS3 profit report.

ukilnme5388d ago

@ II Necroplasm II

You know she won't post those. Much like morganfell she will tuck her tail between her legs and disappear when they know they don't have a leg to stand on.

+ Show (4) more repliesLast reply 5388d ago
mint royale5389d ago

MS sells less during the slowest part of the year. Last year saw more of a price cut boost during this period and a recession hence the slowest quarter in sales for 2 years. This cannot be turned into a MS is doomed article becuase SOny and Nintendo will post equally poor sales. Its just the state of the industry right now. Infact as it is 2008 could turn out to be the peak year for this generation of consoles. Heres hoping that things pick up this christmas and 2010.

iChaos Amongus5389d ago

Yea the industry as a whole is doing much worse than it was a year ago, but things should be picking back up with the next year and this holiday season.

gaffyh5389d ago (Edited 5389d ago )

Pricecut came in August last year, so it;'s data will not be included in last year's financial results, but this years' instead.

Edit:

I know I'll probably get disagrees, but it's the truth.

green5389d ago

We are in the middle of a recession so shipping 100,000 less than last year while reducing losses is even more or a victory than a loss.If any one thinks that Microsoft shipping 100,000 less consoles is bad, then i wonder what they will say when Sony and Nintendo report theirs.

iChaos Amongus5389d ago

Hard times, people just aren't willing to buy as much with the economy in such a bad recession.

Show all comments (87)
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