Ouch.
All purpose sales and sales rumors/anecdotes thread next gen+
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One has to wonder if the "Surface" brand wasn't successful, would MS even carry on the XBOX brand (division).
Yes, yes they are.
If, XB360 sales have slumped, then that means potential buyers aren’t upgrading to XB1 (fast enough, on covering the difference) or going a different route this generation (PS4/PC). So, if XB360 sales are totally dead, then essentially MS can’t hide behind the XBOX family numbers too much longer.
djskribbles
Legend
X360 sales most likely dropped, so XB1 shipments are probably down a bit YOY, which isn't terrible, but not good either... especially considering they dropped the price. By comparison, the PS4 alone sold-through more units than the XB1/X360 combined in less time.
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Yup.
PS4: 1.7 million units sold through between Jan-Feb (last reported).
XBO & X360: 1.6 million units shipped between Jan-Mar.
Silent_Buddha
Legend
Some interesting stuff. The 4% unfavorable impact of foreign currency matches the 4% decline in revenue. The same reasons why foreign current exchange rates are allowing Sony to look better YoY are going to make MS look worse, YoY. If currency were flat the division would also be flat YoY. NOTE - this isn't saying that the Xbox product line is doing well YoY, it isn't (24% decline in Xbox revenue only 4% of which is due to the impact of foreign currency).
Despite lower revenues, gross margin is up drastically (meaning profits are also up significantly). 2 things impacted this.
- Product shift to higher margin Surface 3 pro devices (direct impact)
- 27% lower Cost of Revenue of the Xbox Brand (indirect impact). Each console costs less than it did last year (higher margin), but also selling less consoles than they did last year. Which means the product mix between hardware revenue and software revenue (high margin, extremely low CoR for licensing fees) shifted more in software's favor.
So, while revenue for the Xbox brand dropped 24%, the Cost of Revenue dropped 27%. It isn't ideal for MS that revenue and unit sales are down, but the profitability of the brand is actually slightly up (revenue is down while gross margins are up). It's obviously not sustainable if they keep bleeding marketshare, but it also means they aren't in a seriously bad place yet.
Regards,
SB
In answering BRiT's prayers, MS went
Why would you expect it to be better? That was coming off a launch quarter (where they were still probably overshipping to be safe) and 360 will just naturally continue to decline so you'll get some decline there...
These posts seem a little disingenuous or else just not understanding the numbers much.
For reference of those reading, calender 1Q 2014 for Xbox=2.0 million. Calender 1Q 2015=1.6 million.
I guessing PS shipments will be about 2X that based on last year (I think they did 3.7 same quarter last year) . Why would that surprise anybody given all the posts and knowledge about how PS4 is supposedly selling 3x-4x better worldwide?
For NPD reference I have the X1 at 658k Jan-Mar. We have not gotten 360 numbers last two months, but in Jan they were 40k.
I have PS4 at 875k in NPD for the same period. To be outselling X1 fairly substantially in USA just shows where things are at right now. But anyway, say 3X that number for a WW PS4 sales guesstimate, you're ~2.7 million. Add some to that for PS3. Maybe 3.0-3.5 million shipped would be my Playstation prediction.
I would have said strong Japan sales may pick up PS4 shipments, but last year was launch and IIRC in media create PS4 is still down a bit year over year. It's just up weekly compared to recent months.
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Given that MS has shipped 1.6 million Xbox units between Jan-Mar, one can assume there was roughly 500k units floating within the retail channels during that time period. And given that MS sales more XB1s units in the US, than all the other territories combined on a monthly bases... one can assume XB1/XB360 worldwide sales (sold-through) during Jan-March was around 900k - 1.1 million units combined.
Now, when compared to PS4s 1.7 million (sold-through) units, between Jan-Feb, and the very high possibility that an additional 850k or more units sold during March worldwide... we can safely assume, PS4 sales did outpace XB1 between Jan-March by 1.4 million units (or more) worldwide.
IMHO, this does look bad...
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D
Deleted member 86764
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I don't think Microsoft ever expected these results; they were hyping between 400 million and 1 billion sales of the Xbox One before it was released. They also made comments about each new console generation causing 30% better sales than the one that preceded it. The irony is they suggested that the multimedia capabilities of the Xbox One would push the sales way beyond those of a normal console by widening their customer base.
My personal opinion, and this is coming from someone that's owned several Xboxes, is that this has been quite a disaster for Microsoft. They've constantly had to reduce the price, change the hardware, throw in games in order to complete partially with Playstation. They've essentially dropped the multimedia focus and switched completely to games.
Yes. None of that should be surprising...
It's probably around 2:1 worldwide normally.
DuckThor Evil
Legend
I d0n't think MS had much reason to overship last year. They had plenty of stock sitting on the shelves from the launch quarter, also with all the adjustments they made last year to the overall package, I'm sure they hoped the base sales level now to be higher than last year. Still I wouldn't say that those numbers are surprising or worse than expected at this point.
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PS4 £299 until Tuesday.
http://metro.co.uk/2015/04/23/ps4-price-cut-to-299-but-only-till-tuesday-5164047/
http://metro.co.uk/2015/04/23/ps4-price-cut-to-299-but-only-till-tuesday-5164047/
-ly transparent concern trolling in here, for sure. 
I understand the numbers and history of console sales quite well, but I still expected that the shipments would be larger [not direct sales to consumers, those numbers we almost never get these days from MS]. Xbone has now much larger game catalogue, the stigma of bad initial branding is wearing off and console can be purchased for AT LEAST $150 less [and it comes with free games as a bonus] than this time last year.
Even if X360 sales fell down 50%, that is IMO still bad shipment performance for Xbone.
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So basically MS have cut the hardware, reduced the physical price, and then reduced it some more with pack in deals and still their sales are decreasing. That is just plain bad news. Now that Sony are testing the waters with a £299 deal things could get really bleak for the XB1.
RancidLunchmeat
Veteran
I disagree with that completely. Almost every single update has focused on drastically improving the multimedia functionality of the Xb1. What they've stopped doing is talking about their multimedia focus and attempting to market it that way, but they've been full throttle in terms of updating its multimedia functionality. They've just changed their message after the initial disaster.
And for all this talk of doom and gloom, it's only as such when you are making comparisons to the PS4. It's doing well, on its own, in a vacuum. As long as there's no "critical mass" achieved by the PS4, it doesn't matter if they continue to outsell the Xb1 2:1 or 3:1.
Finally, I think people are overlooking the major positive for MS which is their ultimate goal in this space anyway, which is large revenue gains from Live subscriptions and transactions.
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