Xbox sales to slow ahead of PS3 and Wii launch(?)

http://www.vnunet.com/vnunet/news/2162752/xbox-sales-slow-for-ps3-wii

Sales of Microsoft's Xbox 360 will fall towards the end of this year as gamers wait for the release of competing products from Sony and Nintendo, according to one of the principal manufacturers of the Microsoft game console.

Confidential documents seen by vnunet.com reveal that Taiwan-based Wistron, one of three primary Xbox 360 manufacturers under contract to Microsoft, expects its shipments of the console to slow in the third quarter and adversely affect revenues.

Wistron privately expressed its concerns over an Xbox 360 sales dip to financial analysts in Taipei, who have disseminated them in briefings to their clients.

The size of the potential shortfall was not disclosed, but the manufacturer still expects its overall sales revenue to rise thanks to product lines other than the Xbox.

As a storm of marketing hype builds up prior to the release of Sony's PlayStation 3 and Nintendo's Wii, consumers will begin delaying console purchases to compare the competing products.

Even committed Xbox buyers are likely to delay purchases if they believe price cuts are imminent. Sony's PS3 will be considerably more expensive than the Xbox 360, analysts say, while Nintendo claims that the Wii will be significantly cheaper.

Wistron rarely comments publicly on details of its relationships with specific clients. The company did not reply to a request for comment on its Xbox 360 sales forecasts.

Uh-oh.
 
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This article doesn't make sense. for one wistron could simply be saying this because MS has scaled back production with them, but that doesn't mean they are scaling back production every where.
 
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However, this does bring up an interesting question...In the face of Nintendo's and Sony's launch how will the X360 endure?
 
However, this does bring up an interesting question...In the face of Nintendo's and Sony's launch how will the X360 endure?
Pretty well, I'm guessing. Numbers may go down temporarily, but they will not stay there. They stand to catch quite a few people who cannot get another console.
 
It is understandable that with 2 consoles releases in just a couple of months buyers are holding off to see what they have to offer. I'd certainly be doing the same if I was in the market for a new console right now.
 
but that doesn't mean they are scaling back production every where.
No, it doesn't, but wouldn't it be logical if that was indeed the case. Hell, I thought the box had gone out of production altogether by now. MS has clearly been phasing it out for a while now, if not openly so at least in spirit. Same with developers I would say.
 
This article doesn't make sense. for one wistron could simply be saying this because MS has scaled back production with them, but that doesn't mean they are scaling back production every where.

Sounds like this is from a Securities and Exchange Commission filing for the company. By law they need to report likely risks and drop in earnings. They will normally not use such things for PR purposes because the CEOs can end up in jail or find themselves personally liable for shareholder losses for making fraudulent statements in SEC filings.

With two more next gen consoles coming on the market when there was only one before, I would think it would be logical to conclude that XB360 sales will drop compared to where they would be without any competition. So what is the big deal?
 
No, it doesn't, but wouldn't it be logical if that was indeed the case. Hell, I thought the box had gone out of production altogether by now. MS has clearly been phasing it out for a while now, if not openly so at least in spirit. Same with developers I would say.

? this is regarding Xbox 360, not the original xbox from what I can tell.
 
Meh, take this with a grain of salt imo, as far as we know, MS has warehouses of 360's waiting to be shipped given their slow summer sales.

I think 360 stands to do pretty well this holiday for sure, in the US the most PS3 will likely have available is 700k-1m over both Nov and Dec, and I'm really not convinced that Wii will be too succesful with the mainstream gamer. So I think it looks very good for 360 to pick up a ton of gamers who can't get a PS3, and are not intrerested in last-gen graphics with Wii.
 
I think 360 stands to do pretty well this holiday for sure, in the US the most PS3 will likely have available is 700k-1m over both Nov and Dec, and I'm really not convinced that Wii will be too succesful with the mainstream gamer. So I think it looks very good for 360 to pick up a ton of gamers who can't get a PS3, and are not intrerested in last-gen graphics with Wii.

I think your leaving out the hardcore Nintendo gamers and possibly mainstream gamers coming early because the value it provides (1. Low cost console). It could get ugly...the X360 message gets drowned out or their provide a unique message in the middle.
 
I think your leaving out the hardcore Nintendo gamers and possibly mainstream gamers coming early because the value it provides (1. Low cost console). It could get ugly...the X360 message gets drowned out or their provide a unique message in the middle.

But the GC is a lowcost console that will have most of the big name games this holiday like Metroid and Zelda. We'll see, I think it may take off with new/casual gamers who wouldn't otherwise be buying this holiday, but the more conventional guys are still gonna need their nextgen fix.

It could get pretty ugly if MS's game library doesn't pull through this holiday, and the games are subpar, but it's looking promising right now.
 
Leading up to the launch of the PS3 and Wii I expect the sales of the 360 to take a decent drop, when Xmas roles around they will take a gain and then after that they'll start going pretty well.

Basically MS doesnt have the consoles power to draw everyone to the 360 just because it came out early. Early adapters and Xbox fans picked it up while others just simply waited till the PS3 and Wii come out and then size up and pick from there.

I personally think MS launching the 360 early was a waste, the 360 would have been better served from further refinement and a better launch than coming out early.
 
? this is regarding Xbox 360, not the original xbox from what I can tell.

It should be, as far as I can remember, Xbox production stopped quite a while ago. I believe there was a MS releases saying that they'll switch over to the next-gen and only sells its warehouse stock.
 
They sure don't want to have too many 'old' 360 models in stock too. Remeber they're switching to V2 of the cpu pretty soon...
 
Pretty well, I'm guessing. Numbers may go down temporarily, but they will not stay there. They stand to catch quite a few people who cannot get another console.
Yeah, the 360 is teh doomed!!!

Sure there will be a drop around launch and it will depend a bit on how many Wiis and PS3s will be provided, but I am quite sure close to christmas with a limited amountof Wiis and PS3s the 360 will have great sales...
So you are basically saying that there will be a significant amount of people going out, originally intending to buy a PS3 and then bringing home a 360?
Or that a significant amount of people are going to "upgrade" their buying decision? (i.e. planning for a Wii, not getting one, bringing home a 360)

I honestly don't believe it can ever work this way. How many people bought a PSP (edit: or a GBA) because the DS was sold out (or not available yet)? I know Peter Moore would answer "10 million", but that's his job.
 
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I just thought about this a few days ago ... I think sales for the 360 will slow considerably in the few months before the Wii and PS3 have launched, but then there is good potential to catch up on those months during the Christmas season. However, this does of course partly depend on how much the Wii and PS3 influence the desire for a 360. If people start to think that the Wii or PS3 are the thing to have, and the 360 isn't, then sales could slow. But if people think the difference is negligible, and the price difference more than make up for it, then sales of the 360 may be (very) healthy during the Christmas season.
 
? this is regarding Xbox 360, not the original xbox from what I can tell.
It is?
Oh, well, just feel free to disregard everything I said in my post then! :D Sorry, I thought it was about the original black plastic clunker.

If it's about the 360, then I'd agree with your (rather obvious, really) observation that a reduction in production at one site does not neccessarily entail a reduction at all of them...
 
So you are basically saying that there will be a significant amount of people going out, originally intending to buy a PS3 and then bringing home a 360?
Or that a significant amount of people are going to "upgrade" their buying decision? (i.e. planning for a Wii, not getting one, bringing home a 360)

I honestly don't believe it can ever work this way. How many people bought a PSP (edit: or a GBA) because the DS was sold out (or not available yet)? I know Peter Moore would answer "10 million", but that's his job.

Well, christmas season, if you can't the one gift you get the other. Well actually whether the PS3 or wii would be there or not, the 360 should sell well because of the holidays. But sure a lot of interested gamers just waiting to see what all the next consoles are waiting to see what they are about before getting one, and if it is a pain to get hold of one or think it is not worth the trouble or whatever might get what is available instead...
 
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