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2013 Xbox One sales topped 3M

  • With CES underway, Microsoft (MSFT -1.7%) announces it sold 3M+ Xbox One units in 2013, following the console's Nov. 22 launch.
  • The company announced on Dec. 11 sales had topped 2M. Nomura has forecast 2013 sales would be in the 3M-4M range, while adding the Xbox business could see $1B+ in 2013 losses.
  • Sony (SNE +0.7%) announced in early December it had sold 2.1M+ PlayStation 4 units since the console's Nov. 15 launch. The company is aiming for 5M sales in FY14 (ends in March), and has said it's comfortable with analyst forecasts for 3M 2013 sales.
  • AMD (AMD +3.9%), the CPU/GPU supplier for both consoles, has been estimated by IHS to receive $110 per Xbox One unit, and $100 per PS4 unit.
Comments (7)
  • Tri Duong
    , contributor
    Comments (1452) | Send Message
     
    I would guess Sony is at ~3.5M units sold. Either way, it looks like 2013, Sony and MS sold over 6M units. That is very good news for both camps. It is even better news for AMD. Will be a blockbuster year for AMD in 2014.
    6 Jan, 01:10 PM Reply Like
  • Istii
    , contributor
    Comments (28) | Send Message
     
    Sony is at 4M! Ps4+X1+WiiU+X360+Wii(AMD GPU/APU inside) 12M unit sold 1in 2013 Q4.
    6 Jan, 01:37 PM Reply Like
  • Ruffdog
    , contributor
    Comments (1219) | Send Message
     
    3,000,000 X $499 = $1.5B in sales, how does MSFT loose $1.0B? Who is Rick Sherlund and Nomura? must be a short seller.

     

    10 years from now every household will have only entertainment device on their living room table and each bedroom, an xbox that you can game, watch movies, cable channels , surf the net, work documents and spreadsheets and any other entertainment task you need or want to do. Attend next year's CES.
    6 Jan, 01:22 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (753) | Send Message
     
    Sherlund is a staunch MSFT bull, though he has argued in favor of unloading the Xbox unit. His loss estimates takes into account expenses such as R&D, marketing, etc.
    6 Jan, 01:24 PM Reply Like
  • Ruffdog
    , contributor
    Comments (1219) | Send Message
     
    So MSFT will be writing off all R&D in 2013? If that is the case and all R&D is already expensed, the xbox sales revenue for 12014 and beyond, will go directly to the bottom line. Also, the $1B 2013 expense will reduce MSFT 2013 tax liability.

     

    The 1/23 earning conference call should be interesting.

     

    Another item to remember, is that Gates sells his 20m MSFT shares per quarter soon after the earnings report, and that will be another great buying opportunity.
    6 Jan, 01:36 PM Reply Like
  • Marty Chilberg
    , contributor
    Comments (362) | Send Message
     
    Rick's a pretty sharp analyst but I think his estimated loss for XBox is way off. In F13, Msft reported $10.2B in revenues and $850M in op income for EDD. This segment included XBox, Windows phone and Skype. Skype has been pretty flat in revenues since the acquisition and quite likely has a relatively large operating loss. Windows phone generated about $2.1B in revenues in F13. Msft spent a ton on R&D as well as in marketing and helped subsidize the losses of Nokia. Hard to believe this product had a large profit, it any. That would mean that the XBox product line was quite profitable. Note he has turned bullish in the past 6 months but earlier in 2013 was quite negative. He also was adamant that Mulally would be announced as the new CEO by 12/31/13.
    6 Jan, 03:22 PM Reply Like
  • Nettligent
    , contributor
    Comments (1345) | Send Message
     
    Apple, Sony, ARM Holdings, and Microsoft invest heavily in AMD. The price point is sweet, performance is awesome, and continue to do well.
    6 Jan, 02:37 PM Reply Like
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