Microsoft To Miss XBox 360 Sales Targets By As Much As 25%

Colin Sebastian at Lazard Capital Markets has warned that he expects Microsoft's (MSFT) XBox 360 shipments to only total 4.5 million for the year, instead of the 5 million expected. That says to me that the XBox 360 marketing plan is fading fast.

The XBox 360 Core System

Why? People forget that the original projection for XBox 360 sales was for 5.5 to 6 million within six months of launch. That projection was re-iterated in January this year, but extended out to 5.5 million by July. And now, we're looking at 4.5 million for the year. Ouch.

We'll know more after Microsoft announces earnings tomorrow. But many analysts were originally projecting that there would be 8 or 9 million XBox 360s in the market before Playstation ever launched. If these numbers are correct, it says that sales aren't living up to projections. And with two new competing consoles launching next month, this story isn't going to improve a lot without a serious marketing push to compete. Suddenly, that one-year lead Microsoft had on Sony (SNE) doesn't look like such a big advantage after all.

Comments

[Michael Campbell]

Carl

You have really miss read the report. here let me help you out

the analysts wrote the article pertaining to North america sales. they state the 360 will miss its North America sales projections by 500,000. first thats 10 percent and not 25 percent and its north america only. Microsfts 5-6 million projection by June was for worldwide sales which they ahve shipped roughly 5 million by june. thats old news you seem to have missed. The predicition of 8-9 million by time the ps3 launched once again was worlwide. They are already at 6-7 million worlwdie and had a very strong septemebr in all markets including launches in South Africa and India. They will likley have 10 million worlwdie by the end of the year thats almost a given. But your article is very poorly written. You compared worlwdie sales to a North america sale estimate and failed badly.

Ms projected at e3 06 to ahve 10 million by the end of the year. Analysts predicted 8-9 million by nov. WORLD WIDE.

The analysts you quoted is refering to us sales only.

"People forget that the original projection for XBox 360 sales was for 5.5 to 6 million within six months of launch. That projection was re-iterated in January this year, but extended out to 5.5 million by July. And now, we're looking at 4.5 million for the year. Ouch.
"
see your mistake. 4.5 million in North america by the end of the year Not worlwide. North america sales are as of september 2.6+ million. World wide estimates are 6.5 million right now. this is a lose estimate and I need to fidn all the data but your article makes confuses world wide projections with a single analysts North America porjections. NOT WORLD WIDE. The 8-9 million were worldwide projections. once again i politely ask you to fix your article as it makes you look very un-informed and confused.

sorry to point this out. DON;T CONFUSE NORTH AMERICA SALES AND WORLDWIDE SALES.

and as of 1/12007 the 360 will be launched in 32 countries while the ps3 with very limited supplies will be in only 3. All analysts expect a 8-10 million end of year total unit sold world wide of the 360. if i need to supply you with all the data i will but i think you get the point and can eaisly see your mistake

2006 Oct 25 11:01 PM