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Microsoft sells over 1M Xbox One consoles within 24 hours

  • Like Sony (SNE) with its PlayStation 4 (PS4) a week earlier, Microsoft (MSFT) sold over 1M Xbox One computer-gaming consoles within 24 hours of the device going on sale on Friday.
  • However, Microsoft achieved its record tally in 13 countries, while Sony launched the PS4 in just the U.S. and Canada.
  • Piper Jaffray reckons that Sony and Microsoft will each sell 3M consoles globally by the end of the year.
  • Meanwhile, the EU will reportedly grant Microsoft unconditional approval of its acquisition of Nokia's (NOK) mobile phone unit in a deal worth $7.3B. The EU has set a deadline of December 4 to decide on the transaction.
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Comments (33)
  • mhfreak
    , contributor
    Comments (177) | Send Message
     
    What's the breakdown of sales per country? It's great to make the blanket comment of "they did it in 13 countries while the PS4 did it in two" but, if 99% of sales came from the US and Canada then, in my mind, there's not a big difference here...
    24 Nov 2013, 03:37 AM Reply Like
  • Watermellon56
    , contributor
    Comments (1110) | Send Message
     
    VGChartz reports sales by North America, Europe and everyone else.
    http://bit.ly/10quzwH
    For the 360, over half of sales were made in North America.
    24 Nov 2013, 07:43 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (4505) | Send Message
     
    What a shame Nintendo occupies 5/10 of the top 10 console system sales of all time, and they can't even crack 10 million this go round despite it being Wii compatible and HD. This simply goes to show how fast a company can lose a market in this lightning fast economic environment. Been on the fence to trade up my sons Wii u for the One, but will wait and see.
    24 Nov 2013, 07:16 PM Reply Like
  • joelkatz
    , contributor
    Comments (538) | Send Message
     
    Matthew Davis,

     

    Being able to lose something, you need to have it before losing it, when did they have, they appeared recently like a monster grabbing nintendos share in console.
    24 Nov 2013, 07:49 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (4505) | Send Message
     
    Sorry to break it to you but the Wii was more successful than both Xbox and ps3.

     

    The Will sold 100M vs Ps3 an Xbox 360's 80M a piece. So Nintendo was top dog until a year ago.
    24 Nov 2013, 11:54 PM Reply Like
  • joelkatz
    , contributor
    Comments (538) | Send Message
     
    So Nintendo was top dog until a year ago.

     

    That's right, till a year ago, now MSFT came out of nowhere and is changing the game.
    25 Nov 2013, 10:09 AM Reply Like
  • mhfreak
    , contributor
    Comments (177) | Send Message
     
    Thanks for the link to the chart. I hope they update it soon to include the 1 million XBOX One consoles that have been sold. From what I could see on the chart (as of my typing this) XBOX One is not listed. Because of this, my question goes, as of right now, unanswered....
    25 Nov 2013, 02:54 PM Reply Like
  • vanebfbc
    , contributor
    Comments (134) | Send Message
     
    Another thing to keep in mind is that Playstation 4 has lower profit margin vs. production cost, while Xbox One has a higher margin and sale price. If both sold exactly 1 million consoles on their first day, that means there is more profit for Microsoft than for Sony for the consoles alone. That said, Playstation 4 seems to have slightly more positive sentiment in general. I think both are excellent additions to the gaming industry, but how much profit they can generate is yet to be determined.
    24 Nov 2013, 04:19 AM Reply Like
  • dsa
    , contributor
    Comments (20) | Send Message
     
    both Xbox one and PS4 don't make money from the console, and they stated this earlier.... They expect to make money from services and contents. more console sales = more subscriptions = more profit
    24 Nov 2013, 10:13 PM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3151) | Send Message
     
    @DSA - both sony and MSFT have stated they expect to break even or make a slight profit this go round - compared to say the PS3 when sony was losing around $200 per console when the ps3 first launched
    24 Nov 2013, 10:29 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (4505) | Send Message
     
    Nope Sony said a loss, Microsoft said break even or profit.
    24 Nov 2013, 11:58 PM Reply Like
  • Skylander2011
    , contributor
    Comments (454) | Send Message
     
    does this mean that AMD and msft will have boost to their SP?
    i think ill get some more AMD calls and grt few msft when im at it..:-)
    24 Nov 2013, 07:01 AM Reply Like
  • Chris Lau
    , contributor
    Comments (2802) | Send Message
     
    (AMD) makes $100 in revenue from each sale of PS4 or XBox One. So 2M total sales = 200M in revenue for AMD.
    24 Nov 2013, 09:02 AM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3151) | Send Message
     
    per CFO comments in Q3, 15% op margin on consoles

     

    $200M * .15 = $30M going to the bottom line. Sony is predicting 3M PS4 consoles sold by Christmas
    24 Nov 2013, 09:20 AM Reply Like
  • Joeriii
    , contributor
    Comments (207) | Send Message
     
    100$ per PS4 or Xbox One? Thats a lot, source?
    24 Nov 2013, 10:13 AM Reply Like
  • Joeriii
    , contributor
    Comments (207) | Send Message
     
    think i found it

     

    http://bit.ly/1dtAsVA

     

    --> 120$+ in revenue per device
    24 Nov 2013, 10:15 AM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3151) | Send Message
     
    @Joe - iSuppli pegs the PS4 chip at $100, and another source pegs the PS4 chip at $88

     

    http://bit.ly/1dtCTra
    http://bit.ly/1dtCTat

     

    if you look at a BoM of a smart phone or something built on a similar process at TSMC, those ~100 mm^2 or smaller high end smart phone chips usually price somewhere between $25 or $35, unless you look at apple (makes their own chips, so their cost is lower at $20 for the A7 chip in the iPhone 5s)

     

    bigger chips are harder to make and the chips can't be salvaged as easily since PS4 needs to put near identical chips in each unit (meaning they can't use a lower functioning chip to make a cheaper PS4)

     

    so I think the $88 estimate I've seen is likely on the low side, and my *guess* is that the cost actually lies somewhere between the $100 and $120 quote you just presented.
    24 Nov 2013, 10:34 AM Reply Like
  • mr.investor
    , contributor
    Comments (64) | Send Message
     
    You almost have to remember that processor development is very expensive.
    24 Nov 2013, 10:47 PM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3151) | Send Message
     
    AMD's semi-custom model is about re-using IP, not developing things from scratch like the RSX graphics chip+Cell processor in the PS3. It's less expensive this go round.
    24 Nov 2013, 10:54 PM Reply Like
  • Matt-Man
    , contributor
    Comments (703) | Send Message
     
    It is likely that AMD has a tiered deal, first few million with higher price and when volume catches up, price goes down
    25 Nov 2013, 01:14 AM Reply Like
  • aphmd
    , contributor
    Comments (107) | Send Message
     
    That's great news for MSFT, considering all the negative publicity they received prior to launch, and the $100 extra price tag. The Kinect is an amazing addition, and its technology is licensed even to the medical industry. This is a legacy for Ballmer, not to say that he can't be criticized for other issues.
    24 Nov 2013, 07:49 AM Reply Like
  • wshyang
    , contributor
    Comments (42) | Send Message
     
    3M units by the end of the year?

     

    That's the number of iPhones Apple sells on launch day. This whole thing, from a profit perspective, is a waste of time.
    24 Nov 2013, 08:10 AM Reply Like
  • Ruffdog
    , contributor
    Comments (2196) | Send Message
     
    Yippies that have to have the latest and greatest are switching from Iphone to Samsung Galaxy. My daughter made the switch last Christmas.
    24 Nov 2013, 11:02 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (11609) | Send Message
     
    I made the switch from Crest to Sensodyne toothpaste long ago.
    24 Nov 2013, 01:54 PM Reply Like
  • MarketDummy
    , contributor
    Comments (112) | Send Message
     
    Just got the new xbone. Also bought a second controller for $50. Then the $60 subscription to Live. There was also the $200 for games so far. Yeah, Microsoft is so wasting time from a profit perspective. Maybe they'll make a few bucks when I buy an app from the store?
    24 Nov 2013, 07:05 PM Reply Like
  • joelkatz
    , contributor
    Comments (538) | Send Message
     
    Comparing Xbox one with playstation? Even Retail price totally different!
    24 Nov 2013, 10:36 AM Reply Like
  • Ruffdog
    , contributor
    Comments (2196) | Send Message
     
    Ya $100/unit more for the pockets of MSFT.
    24 Nov 2013, 10:59 AM Reply Like
  • joelkatz
    , contributor
    Comments (538) | Send Message
     
    Thats right, so thats a big win for MSFT
    24 Nov 2013, 07:52 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (4505) | Send Message
     
    No more like $20-30
    24 Nov 2013, 11:59 PM Reply Like
  • creidy
    , contributor
    Comments (7) | Send Message
     
    If you really think Xbox is making 100$ more per console sold than Sony then... I'm not even going to get into it. No. Much less. Xbox ships with Kinect.
    25 Nov 2013, 01:31 AM Reply Like
  • Ruffdog
    , contributor
    Comments (2196) | Send Message
     
    All this good PR makes the sale of the XBox division more valuable when MSFT sells it. MSFT needs to keep pounding enterprise and cloud, their current major source of income. And continue to buy back shares and annually increase the dividend.
    24 Nov 2013, 10:59 AM Reply Like
  • Watermellon56
    , contributor
    Comments (1110) | Send Message
     
    I have understood that the goal of the XBOX One is to replace the TV tuner. The idea is to replace the complexity of finding something on the internet with an interface that is as simple as turning channels. The goal is to capture the advertising streams associated with traditional TV. In addition, the XBOX One was described as capable of emotion based advertising. Given: XBOX One is not there, but it unlikely that softie will sell something that could be more lucrative than Google search.
    24 Nov 2013, 12:51 PM Reply Like
  • Fanebrb
    , contributor
    Comments (661) | Send Message
     
    I got an Xbox. It's a good name for it. It's going back to the X Co. that made it.
    24 Nov 2013, 11:14 AM Reply Like
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