Xbox 360 (Xbox 360) > Articles
bids
33
33
Xbox 360 (Xbox 360)
Microsoft claim 42% of all next-gen revenue
Microsoft claim 42% of all next-gen revenue
MCVUK - March 10, 2008
Submitted by Mushashi (5) at 7:32AM PST on March 10, 2008
360 has taken almost half of ‘life-to-date’ next-gen revenues, says firm; 17.7 million worldwide installed base confirmed
Microsoft has staked its claim as the market leader in the console space with two bold claims this morning – not least that it has taken over 40 per cent of ‘life-to-date’ revenue across hardware, games and peripherals sales.
In addition, the firm has confirmed a whopping 17.7 million global installed base of the console.
Discussion - Submit a comment
bids
1Just_Ben posted on Xbox 360 (Xbox 360) at 3:43AM PST on March 12, 2008. RE: Microsoft claim 42% of all next-gen revenue@Stitch,
If you go do a finance audience the earning is more interesting than revenue. The share holder are not that much interested in revenue, they only interested how much you make out of it. And MS is doing that since October. September (Halo) was the last month they used software sales as argument. I would argue, they loose in sales volume against the Wii since then.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
2vGInfidel posted on Xbox 360 (Xbox 360) at 3:41AM PST on March 12, 2008. RE: Microsoft claim 42% of all next-gen revenue@Laoldar,
thats pretty much what i said in the couple of posts prior to that last one where i went a bit off my point. microsoft is for building up its brand and part of that is matching sony to some extent and not giving it the huge marker share it had last generation but yes at the end of the day it purely comes down to profit.[ Oracle ] [ Level 22 ] [ Rank: 150 ]bids
0Stitch posted on Xbox 360 (Xbox 360) at 3:03AM PST on March 12, 2008. RE: Microsoft claim 42% of all next-gen revenue@Just_Ben,
I'm going to go on a limb and say owning 8 Wii games puts you on the high end of games/customer. I must agree, most people I know who own a Wii only got it for Wii Sports. These people don't play video games otherwise. They haven't even considered getting more games for the Wii as they don't really think of it the way gamers traditionally do (as a platform for playing many games).
The revenue issue probably depends on the audience of the news story. If it is for business / finance audience, then revenue is the obvious metric to be looking at. Additionally, if you are going to combine the demand of consoles, peripherals, and games, revenue would be the way to combine all three into a single metric.[ Speaker ] [ Level 18 ] [ Rank: 518 ]bids
1Just_Ben posted on Xbox 360 (Xbox 360) at 2:57AM PST on March 12, 2008. RE: Microsoft claim 42% of all next-gen revenue@GoblinMerchant,
So what games to get NOT nintendo published? I mean, where are the great third party games that somebody should buy? No more Heroes, Zack and Wiki, Resident Evil and Guitar Hero are the only one I know off, and all of them got decent sales for their kind of games. I can't hear the "Wii owner buy no games" myth anymore. It is not enough that MS talks about revenue? Why do you think they do it? Or they only talk about third party sales? Because in total Wii software is outselling them, thats why. I own 8 wii games in total, thats a hell lot for a year, I think, considering that I also play PC. Sorry, but the "Wii software doesn't sell" is something I can't hear anymore. Just ask Capcom what they think, or why they put Monster Hunter on the Wii. Yes the Wii has a casual audience, but the PS2 had also a casual audience and NO one would say that the platform had bad software sales.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
2Laoldar posted on Xbox 360 (Xbox 360) at 5:32PM PST on March 11, 2008. RE: Microsoft claim 42% of all next-gen revenue@vGInfidel,
Success isn't a relative measure.
It doesn't matter one bit how the 360 is doing compared to the PS3...it matters how their revenue is doing overall. The fact that the 360 is outselling the PS3 is more of a commentary on the poor sales of the PS3 rather than a compliment to the 360.
Microsoft needs to make money. It doesn't matter if they outsell the PS3 4:1...unless they get a god consistent profit going (we'll have to see how the next few fiscal quarters go), it doesn't matter.
Like any publically traded company, Microsoft's sights are set solely on profit...it doesn't matter whether they're in first place or last place, as long as their huge console gamble finally pays off (and at this rate it'll still take them many years to break even).[ Oracle ] [ Level 21 ] [ Rank: 182 ]bids
1vGInfidel posted on Xbox 360 (Xbox 360) at 5:23PM PST on March 11, 2008. RE: Microsoft claim 42% of all next-gen revenue@Bobuido,
im fairly sure that people like you who have brought over a dozen games are in the minority on the wii. attatch rate is around 3.5-4 IIRC and its sold about 20million give or take so lets say a rough estimate of 80million as a software total (remember 10million of this at least is wii sports/play). The 360 has sold 17.7million to date and has an attatch rate around 7.5-8 so lets say a rough estimate for software total of 140million. thats not bad going even if it has had a years head start.
dont forget that MS failed miserably last gen with the ps2 outselling the xbox 6:1, if the 360 can get on the same level then thats a huge leap in just one generation and MS will be very happy with that. MS doesnt see Nintendo as its main competition anymore since its catering for a completely different market (though one MS would like a share in) its targets are firmly set on Sony.
from your posts its blatantly obvious that you own a Wii and have some level of fanboyism towards it, same as you can probably tell i own a 360 and support it as i believe its the best console. we just have different points of view which makes discussion and putting spin on the figures great :)[ Oracle ] [ Level 22 ] [ Rank: 150 ]bids
1Bobuido posted on Xbox 360 (Xbox 360) at 4:58PM PST on March 11, 2008. RE: Microsoft claim 42% of all next-gen revenueIf one console is out selling another by a considerable factor, then surely attach rate isn't such a problem? i.e. the software totals matter, not the attach rate. I have just over a dozen titles and I bought my Wii about a year ago. I also have a big list lined up to buy / check out
e.g.
Mario Kart, Smash Bros, Galaxy, Super Paper Mario, Worms, Sega SS Tennis, Metroid, No more heroes, Heroes 2, SW:TFU (long way off I know :)
Then there's about a dozen games I (re)purchased through VC
So I wouldn't worry about Nintendo software sales. While many will only buy a few games or perhaps none at all. The Wii software will still do very well. It helps people like me prop up the one game wonders. :)
Sure all MS cares about is profit but it can't do much for your reputation when a less powerful machine wipes the floor with your billion $$$ hardware budgets and marketing campaigns. I'm also of the belief the PS3 will sneak past the 360. That won't help bolster Microsoft's reputation either.
If we are talking profits, Nintendo has been making profits from day one on it's hardware. Very nice profits. Hell they're even selling people games they've already bought! That's almost money for nothing.
So yeah...profits and totals matter more than revenue and attach rates. Though it's nice to have all the metrics :)
Midnight rant over :)[ Contributor ] [ Level 19 ] [ Rank: 467 ]bids
1sagexsdx posted on Xbox 360 (Xbox 360) at 11:53AM PST on March 11, 2008. RE: Microsoft claim 42% of all next-gen revenue@GoblinMerchant,
actually, in a news article from a couple months ago that surprised me, the wii actually has a higher attach rate than the ps3. and in december it had the highest.[ Oracle ] [ Level 21 ] [ Rank: 148 ]bids
2GoblinMerchant posted on Xbox 360 (Xbox 360) at 10:56AM PST on March 11, 2008. RE: Microsoft claim 42% of all next-gen revenue@Eclectus,
I assume you got down bids from some Wii fans. Anecdotally, people I know who own the Wii do not buy any games beyond Wii Sports. A few of my friends do own a few games, nearly all of which are Nintendo published.
At least in the US, we have seen the Wii has trouble with third-party software, with multiplatform versions of games generally coming in last on the Wii. GH3 is a strong exception to this trend, but it seems that the very high hardware sales is not translating to proportional software sales. This will not change if people who buy the Wii continue to only buy it for Wii Sports. These are very casual gamers who don't even think about buying the Wii as a console, but more of an interactive party game called Wii Sports.[ Guru ] [ Level 21 ] [ Rank: 260 ]bids
2vGInfidel posted on Xbox 360 (Xbox 360) at 10:51AM PST on March 11, 2008. RE: Microsoft claim 42% of all next-gen revenue@apujanata,
do you really think microsoft cares that much about where it comes in this console race? of course they'd like to have complete market share and be rolling in the big bucks, but thats unrealistic. as long as its not a distant third and doesnt lose money because of it (like the original) they dont mind. if it can keep within the reach of the ps3 (and to some extent the wii) then the 360 will be profitable and that is all that really matters to them. microsoft are in it for the long haul, they are building up their brand for the generations of hardware to come so they in turn can be even more profitable. they put on a show like they care somewhat because thats whats seen as the right thing to do and of course they want it to be successful, but at the end of the day they really dont care that much wether sony beat them by a little bit.
Nintendo never expected the Wii to be the huge success it has been. they wanted to put out a new type of console as they failed last generation and needed to try a different approach. it just so happens that their experiment has worked extremely well for them and so they will continue it and expand for further generations, until people lose interest and they need to do something else.[ Oracle ] [ Level 22 ] [ Rank: 150 ]bids
1Just_Ben posted on Xbox 360 (Xbox 360) at 10:50AM PST on March 11, 2008. RE: Microsoft claim 42% of all next-gen revenue@Bobuido,
Well, a price drop in Europe was due. Interesting that MS is the first, but still, seeing the exchange rates, it was relatively clear that prices in Europe will fall. It is more a price correction that a drop. Sony will do the same at some point this year. Nintendo, I am not so sure. True Europe is the "weakest" market for the Wii (in matter of beating the competition) but it is still heavy sold out in NA. I think the first thing is to keep up with current demand. If they got that part, they may do such a thing in Europe.
We will see where Nintendo takes production in April (Fiscal Year ends). If Nintendo drops the price or do something this year, it will be in Europe first, I think.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
-1Bobuido posted on Xbox 360 (Xbox 360) at 10:43AM PST on March 11, 2008. RE: Microsoft claim 42% of all next-gen revenueConsidering they were first off the blocks, 42% is pathetic! Pretty sure that figure will only drop too. I think SE position predictions are correct. MS will be the next gen losers. 360 can't compete with the Wii. The recent big price drop makes this clear. MS are scared. As they should be.
How the PS3 will fair? My prediction: Better than the 360. PS3 is the better console but with head start this big it's a tough one to call. I will say this. It's the year of the PS3.
If Sony and / or Nintendo respond with a price drop then MS really are in trouble.[ Contributor ] [ Level 19 ] [ Rank: 467 ]bids
1Just_Ben posted on Xbox 360 (Xbox 360) at 10:06AM PST on March 11, 2008. RE: Microsoft claim 42% of all next-gen revenue@apujanata,
Its not like I say MS is stupid to look through that angle, I understand it. Its PR and it is our Job to get what they saying, how and why. :)[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
2apujanata posted on Xbox 360 (Xbox 360) at 3:37AM PST on March 11, 2008. RE: Microsoft claim 42% of all next-gen revenue@Just_Ben,
What else can Microsoft do ? concede that their unit # is lower than Wii ? Of course not. The only way out for them, so that they can still put positive news and NOT lying, is to go with Revenue Angle. At least they are telling the truth. I wonder what their PR will look like one year down the road. I mean, if SimEx is to be believed, X360 will be #3 WW, behind PS3 and Wii.[ Oracle ] [ Level 30 ] [ Rank: 14935 ]bids
4Just_Ben posted on Xbox 360 (Xbox 360) at 2:56AM PST on March 11, 2008. RE: Microsoft claim 42% of all next-gen revenue@Eclectus,
They stormed out the gate a YEAR early, so off course it will fall. They had one year revenue alone. Or in other word, at the beginning they had 100%, now only 42%. Talking about revenue is also something that is misleading. Who the hell is interested in revenue? Revenue doesn't help, if you don't earn money with it. The Wii is generating per se a lower revenue, because the console and the games are cheaper. More interesting in matter of business is earning/revenue (profit margin ). And at the moment, there is one clear king in that department: Big N.[ Oracle ] [ Level 21 ] [ Rank: 112 ]bids
-1Eclectus posted on Xbox 360 (Xbox 360) at 1:59AM PST on March 11, 2008. RE: Microsoft claim 42% of all next-gen revenue@CriticalHit,
Don't agree, yet... - I'm not convinced about Wii software sales unless we start to see the attach rate increasing. Most Wii owners have bought about 3 games. Why do you feel that this will change? I think the PS3 attach rate will go up though, as PS3 gamers are more 'hardcore'.[ Speaker ] [ Level 20 ] [ Rank: 334 ]bids
3CriticalHit posted on Xbox 360 (Xbox 360) at 3:08PM PST on March 10, 2008. RE: Microsoft claim 42% of all next-gen revenueInteresting that this doesn't include the revenue from XBL, which I thought would be their biggest advantage in terms of revenue. I think this market share is set to decline though as software sales for the Wii will increase and everything related to the PS3 will pick up as it starts to gain more market share.[ Speaker ] [ Level 20 ] [ Rank: 498 ]bids
33Mushashi posted on Xbox 360 (Xbox 360) at 7:32AM PST on March 10, 2008. Article: Microsoft claim 42% of all next-gen revenue360 has taken almost half of ‘life-to-date’ next-gen revenues, says firm; 17.7 million worldwide installed base confirmed Microsoft has staked its claim as the market leader in the console space with two bold claims this morning – not least that it has taken over 40 per cent of ‘life-to-date’ revenue across hardware, games and peripherals sales. In addition, the firm has confirmed a whopping 17.7 million global installed base of the console.[ Oracle ] [ Level 30 ] [ Rank: 5 ]
About Us - The simExchange is the video game stock market and the source
for video game sales forecasts.
1
I grew up on Nintendo. I like to think of myself as half man, half fan boy, with a sprinkling of man-bear-pig. That said, I just bought a PS3. So how loyal can I really be? The other thing you need to know when reading my rants is I hate MS with a passion. I have an Xbox (2 if you count the broken one) so I don't think I let it cloud my judgement that much. I went for the Xbox over the Game Cube last gen. So I'm not blinded by hatred but yes my heart does affect my brain from time to time.
Putting aside my fond memories of NES and thinking purely logically, I can still safely say Nintendo shift a lot of software. I honestly don't think MS has the legs in this race. Halo 3 was the only thing tempting me to get a 360 and it just wasn't enough. They might as well have called it Halo 2.5. I'd still rather play BF2 on my PC and not pay for a subscription thank you very much.
Nintendo are not in the same category to some extent but remember the_hardcore_gamer_still has to decide whether his budget goes on Wii or 360/PS3 games. Currently I'm still heavily budgeting for Wii. Nintendo's success does affect Sony and MS considerably even though Nintendo could survive well enough from just the casual gamer.