Microsoft's Xbox Beats Out All Other Game Consoles

I am very, very glad that I am not in competition with Microsoft’s (MSFT) Xbox division. They really are grinding the opposition down. And it is not as if they are attacking on one front. No, Microsoft believes in being better in every single possible way. The Xbox 360 is now, by a huge margin, the gamer’s choice of consoles from this generation. It is cheaper to buy, has far more games available and has the best online gaming service on earth, Xbox Live. Little wonder that in September Microsoft sold $404 million of Xbox 360 hardware, software and peripherals in North America alone. A phenomenal result.

Part of the success is down to platform exclusives. Halo is massive and Halo 3: ODST has done the business again through this summer. But there is also Tom Clancy’s Splinter Cell: Conviction, Forza Motorsport 3 and Left 4 Dead 2 with Mass Effect 2, Gears of War 3, Crackdown 2, Halo Reach and Alan Wake to come. Relentless and formidable.

There is the constant upgrading of Live to become a media hub, with HD movie rental, Facebook, Twitter, Zune and Sky Player on the way. This makes the 360 by far the most powerful entertainment hub that you can connect to your television. And it is a lesson to everyone that Microsoft is a software company, it sees the Live service as being infinitely more important than the 360. The 360 is just the current box of choice, there will ultimately be far more that can use the service.

Also, quietly but persistently, Microsoft is moving content distribution away from the physical plastic and cardboard sold at retail. Online is the future and Microsoft is already there. They keep adding to the number of game titles that can be directly downloaded with a new batch just released including Army of Two, Midnight Club: Los Angeles, and Sonic Unleashed. Microsoft is making the transition gradually so as to wean both retail and consumers to the new reality. But the rumours are that the Xbox 3/ Xbox 720 / Project Phoenix will be a download only device.

As if that weren’t enough, we have Project Natal on the way, an implementation of gesture interface technology that is a quantum leap beyond anything else. This will bring infinite new possibilities to how humans interact with video games and the whole online world. New levels on immersiveness will transform the potential of the medium. We are about to make a paradigm shift of epic proportions.

People scoff when I say that I think that the Xbox 360 will ultimately outsell the current non HD version of the Nintendo Wii (NTDOY.PK). But I still think that it will. The 360 represents amazingly brilliant value for money, yet Microsoft can easily sell it even cheaper. As a gaming device it massively outperforms the alternatives. And it is evolving to do so much more as well.

Comments

[Maxi:]

I completely agree with you. I also think Xbox 360 is the best and pretty soon it will surge past Wii. Microsoft has made several updates in Xbox which are contributing in its success.

Oct 22 09:48 AM

[MistaWhite:]

Not sure about outselling the Wii, and it is having increased competition with the newly released PS3 Slim. I own a 360. I have purchased two of them actually. I also pre-ordered multiple games you listed. I would like to see Microsoft start taking on some of the streaming media devices out there (Popcorn hour, etc..). Open up the support and allow me to play whatever I want on the system. If they can turn it into a media server(ish) type system, and market it correctly (non-gamers), I think they can sell many many more to fit those peoples needs. Also, open up the online game store to other countries. I am living in Korea, and I can't purchase a game via their online store without going through a proxy server back in the states. It's annoying! Doubt I will go long M$ as a result, but with Windows 7 (great product as I have used the beta), I might inch in slowly at some point in the near future.

Oct 22 09:58 AM

[BruceAlmighty:]

Bruce Everiss, you shameless sycophant mercenary. This is amazing. Your advertisement {cough} excuse me, "article" reads like a sixth grade book report written from Cliff Notes. Did you write this in the airport on your way to Redmond?

Just a few points mate:

“And it is a lesson to everyone that Microsoft is a software company…”

Really? This is a lesson to “everyone”? Personally, I thought they were an Quality Assurance and Customer Satisfaction Ethics Company. Thanks for the update.

In breaking news “Online is the future…” Thanks again Bruce.

"...we have Project Natal on the way" We?

"We are about to make a paradigm shift of epic proportions..." We?

We? What is all of this "we" business.

BRUCE! BUBBY! Your transparent laziness has betrayed you! Did you help develop Project Natal? Do you work for MS? Please, tell us all how you have contributed to this “epic” leap in technological majesty. Wait, maybe you are one of these guys that just loves his team soooo much that you put yourself on the roster because you've somehow convinced yourself you've earned it. A self appointed honorary MS MVP you are Guvna.

"People scoff when I say..." I bet you get that a lot, people scoffing at you. Who hired you? I scoff at that person.

How much were you paid Bruce by M$? Seriously... come on, you can tell us.

Oct 22 10:41 AM

[petera:]

Beats out all other game consoles? How?

With a years head start in this generation, the Xbox 360(32 mill) is around 22 million consoles behind the Wii (54 mill.) and only 7 million in front of the PS3 (25 mill).

Given those estimates the 360 is doing about 8 million units a year while the Wii sits at 18 million units a year and the PS3 at 8.3 million a year. So in terms of yearly sales it sits in last place with the PS3 catching up at an alarming rate since the price drop.

Also keep in mind that a ton of those 360 sales are for replacement hardware because of it's mind boggling rate of failure. I'm one of the lucky ones. I'm only on my second 360 since Launch. My first one lasted 3 years and 9 months which in terms of luck is akin to winning the lottery.

Oct 22 11:20 AM

[SeekingXi:]

"People scoff when I say that I think that the Xbox 360 will ultimately outsell the current non HD version of the Nintendo Wii" ....for good reason. in fact, reading your posts is like a scoff-fest. you're either a brilliant satirist, or....well, i don't want to be rude.

Oct 22 11:46 AM

[Gaucho420:]

Its a great console, but wasn't the point of the 360 to be in the living room, guarrrenteeing constanT access to the family?

Your own columns have said in the past that the Wii is in the living room, while the 360 is in the bedroom...which clearly shows that it isn't a family friendly device and therefore, cannot hope to surpass the Wii.

I also know many non-gamers who are waiting to get into gaming for one reason or another (as Nintendo always touts within their stats) and most have zero interest in the 360 or the PS3...too many button, too complicated and too expensive ($60 games turns people off).

So I don't know Bruce....I own a 360 & a Wii, and while I like the extra 360 stuff on XBL, I would choose the Wii over the 360 if I had to pick one console at this point. Its interactive, easier to play with all my non-gaming friends, Wii Fit is a great program that really isn't a game AND...NO RED RING OF DEATH!

If the 360 is going to outsell the Wii, it will be because it copies the Wii. The great myth of the all encompassing machine that the family revolves around isn't true along the PS3 & 360 machines...that machine is the Wii as its simple, fun and easy to get into.

Oct 27 04:54 PM

[Gaucho420:]

and very good point...everyone I know has had a 360 breakdown...I'm on my 2nd one.

It happens again and hello PS3. I'm not a damn idiot who's going to keep feeding MSFT money, when clearly they don't give a damn about their customers.

$120 120 gig hard drive? $99 WIFI Antenna? Poor customer service?

Check, check and check with MSFT.

Oct 27 04:56 PM

[Yang Wang:]

I have Xbox, Xbox 360, PS2, PS3 and Wii in my living room.

Xbox 360 has many problems:
1. Cheap quality: My first Xbox 360 died because of the 3-red-light problem and cheap DVD ROM
2. Big noise from DVD ROM
3. HD-DVD is dead and many games have to be released in multiple DVDs
4. Live service has monthly fee
5. Small and expensive hard drive


"Part of the success is down to platform exclusives. Halo is "

Many games are PS3 exclusives, like Uncharted 2: Among Thieves and Demon's Souls released in the last 2 weeks, these games got the same rating scores as Halo 3 and Halo 3: ODST.


"There is the constant upgrading of Live to become a media hub, "

Playstation Network provides similar services includes NetFlix streaming movies and it's free.


"the way. This makes the 360 by far the most powerful entertainment hub that you can connect to your television. And it is "

How about blu-ray for HD TVs? Many people buy PS3 as a blu-ray player for their HD TVs.


"Also, quietly but persistently, Microsoft is moving content distribution away from the physical plastic and cardboard sold at retail. Online is the future and Microsoft is already there. They keep"

This is happening on Playstation Network too.


"As if that weren’t enough, we have Project Natal on the way, an implementation of gesture interface technology that is a quantum"

This is good for kids, useless for hardcore players who play games for hours everyday, how can you play Halo 3 with it?


Xbox 360 sold more than PS3 because it's cheaper and released 1 year earlier than PS3, in fact, I like PS3 better now for it's good quality.

Oct 27 08:27 PM

[User 512611:]

Actually, almost all, excluding ones who voided their warranties, of the RROD consoles were exempt from the sales figures as they were handled thru MS and the repair/replace dept.
New sales are new sales. I like all 3 consoles so pipe down.


On Oct 22 11:20 AM petera wrote:

> Beats out all other game consoles? How?
>
> With a years head start in this generation, the Xbox 360(32 mill)
> is around 22 million consoles behind the Wii (54 mill.) and only
> 7 million in front of the PS3 (25 mill).
>
> Given those estimates the 360 is doing about 8 million units a year
> while the Wii sits at 18 million units a year and the PS3 at 8.3
> million a year. So in terms of yearly sales it sits in last place
> with the PS3 catching up at an alarming rate since the price drop.
>
>
> Also keep in mind that a ton of those 360 sales are for replacement
> hardware because of it's mind boggling rate of failure. I'm one of
> the lucky ones. I'm only on my second 360 since Launch. My first
> one lasted 3 years and 9 months which in terms of luck is akin to
> winning the lottery.

Nov 13 01:57 AM