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Microsoft: Xbox 360 To Outsell PS3 This Generation
Aaron Greenberg, director of product management for Xbox 360 and Xbox Live, claims to be confident that Microsoft’s console will outsell Sony’s PS3 this generation.
Speaking ahead of the delayed release of NPD’s monthly sales data for the US videogame industry, the executive said he expects PS3 to emerge as the victor in September, but that Xbox 360 will be the winner in the long term.
“I can tell you to that when NPD releases September sales… we fully expect PlayStation 3 will come in as the console with the most units sold for the month. This is frankly not a real surprise to us or the analysts that follow this industry, as it is typical to see a short term bump following the introduction of new hardware and pricing into the marketplace,” he told Game Informer.
“What I can tell you is we remain confident that Xbox 360 will not only outsell PS3 for the full calendar year, but for this entire generation. It is similar to a game of baseball, it is not about just winning one inning, but instead being able to win the game by consistently delivering across all nine innings.”
Greenberg also said that multiple Xbox revenue streams have awarded Microsoft the benefit of having a profitable business, and he questioned whether Sony’s PS3 business model is sustainable.
“There is also the whole financial side of the equation that people rarely seem to pay attention to. Sony, for example, has publicly noted that they lose money on every console they sell and with the price cut, they’re now losing even more money – so even with the PS3 in the market today at $299, you have to question if their business model is sustainable.”
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Copyright 2006 - 2009 Future Publishing Limited, Beauford Court 30 Monmouth Street Bath, UK BA1 2BW
England and Wales company registration number 2008885
Any comparison is skewed because of the 50% failure rate on the 360. People are having to buy the 360 more than once... If you took out all the replacement units then the figures would look a lot different. This is the evil genius of the Microsoft business model - crap quality control & cheapo parts for ur 360. Then u sell more units. What a bunch of pikeys.
Sigh. Welcome to 2 years ago. Any 360 that fails is repaired for free so why would anyone buy another unit?
Well a 3 year warranty is not that long if u consider the hardware cycle, see. I'm guessing a lot of machines will be breaking outside of warranty quite soon. Most people will buy at least 2 machines with fanboys expecting to go through 3 units ftw.
BAHAHAHA does this imbecile really expect anyone to buy into his "Xbox is a profitable business" horseshit? How stupid does he think we are? Him criticizing Sony's business model is like someone from Sony criticizing Microsoft for releasing their console too late.
Oh, Greenby. We haven't seen you 'round these parts for quite a while, and now you make your limping return with this rot? Better luck next time.
Actually it is kind of amusing how similar Sony and Microsoft's position is. They are both large multinational corporations who's core divisions are struggling.
The pick up rate for Windows 7 is sluggish and now Google are releasing an OS. So Microsoft are worried about people not moving on from XP and VIsta and also losing at least a small percentage to their greatest rivals. Zune is like some massive Joke and even though the Xbox has improved it still hasn't really made any money and there is no reason to think a new box would either.
Meanwhile Samsung are owning Sony in the TV market. Apple and Creative are having Sony's life in the MP3 arena. Then there is the uber flop that is Sony Ericsson and the Movie studios that Sony own are flopping all over the place.
Nintendo, Apple and Google must be howling with laughter at how inept those two companies have been of late. In fact what makes Sony's downfall so colossal isn't just the huge dip in numbers but also because Microsoft didn't exactly beat them by making a better box or have better 1st party games. Yet Sony still arsed it up.
Greenberg always talks crap. And why do M$uck always have to come out with the numbers shit? They're so smug about themselves. Its not like they're leagues ahead of the PS3, and considering how much wrong Sony have done and coming out a year later, I don't think M$hite have much to gloat about.
And now they're turning their cheapo machine into a jack of all trades, master of none (why do all that stuff like Facebook etc in a limited capacity when you can do it on your PC?). Wasn't it all about games with them anyway? Thing is, even though this was always going to happen, M$ do it in an all 'me too' manner and try to blow their own trumpet too much. For a console that only really delivers shooters (or games that have lots of shooting) and boring driving games and calls this "range", I don't think they'll keep their lead over Sony much longer.
By the Aaron, you're not winning anyway. Not heard of Nintendo and the Wii?
FANBOY WAR!!! Lets do this!!
WAR! Huh!
What iiiiiis it good for?
To express the undying fanboy love for each fanboy favorite console, no matter what the Xbox guy says he is always wrong and ridiculous and the same goes for a Sony executive, they can do no wrong in the eyes of their fanboys and will always be wrong and stupid in the eyes of the competition's fanboys.
FANBOY WAR FTW!!!!
Let's not please.
Please can I just add...
Nintendo Wii is 4 kidz and lame and sux big time (etc.)
...for good measure?
Yeah, because Microsoft would ever say otherwise. I'm sure Sony will do a press release tomorrow conceding this. *rolls eyes*
I dislike how political this industry gets.
Amen!
Greenberg is a real douche bag. The guy is talking smack about being in a distant second place. 3rd if you could the DS.
To be honest; I fully expect the PS3 to outsell the 360 over these coming 7 months virtually in most territories. This is my expectation; let us see if it is reality on March 30th 2010. Really the PS3 is only getting started. Blu-Ray has been established; PSN has been established and Sony has taken demand from the top end market; the luxury market well. 23.8 million sold as of June 30th was decent nothing spectacular but then nothing poor either; and now I expect a lot more consumers to come into the PS3 arena. The games and services are also only just getting started; i.e. look at how quickly BBCiPlayer was announced; then implemented and then advertised. Vidzone; Movie on Demand services are further services that are coming and will likely be improved upon. I also see Blu-Ray playing a factor as the price comes down. The games also; Uncharted 2, God of War 3, Gran Turismo 5, ModNationRacers, Heavy Rain, The Last Guardian, Ratchet & Clank: A Crack in Time...
And then from on the next games from SuckerPunch, Naughty Dog, Insomaniac, Media Molecule....few!. And also Rockstar are making a exclusive for the PS3 as well which should be arriving near Christmas 2010. Really the PlayStation system really entered their distinct phases in their third and fourth years and I expect the PS3 to be no different whatsoever. I think Sony are looking good for the long term and I can sense that confidence now.
half truths by MS, yes with the price cut Sony would losing more on the FAT PS3, but not the PS3 Slim which Sony is selling at near break even, the thing is Sony cleared most of the channel of FAT PS3s before cutting the price so they've minimize those losses, funny thing here is MS is speaking mostly about their own financial situation with the 360
I'm an accountant by trade and I love numbers. However, when it comes to gaming I can care less who's going to "so call win" the generation. Aaron is nut but I agree that he hasn't stated anything controversial in this piece.
Sony has squandered so much this generation and I'm in agreement that they probably can't get it back. Its been quite a learning experience for them being in this position for the first time. I give MS credit for doing a better job this generation but they still have a lot to learn.
Ultimately, I still don't get gamers. I want Sony to push MS and I want MS to push Sony. Why gamers can't understand that this is how gamers win. Aren't gamers suppose to be the real "winner" this and every generation?
well, i usually don't follow the business side of gaming. as a gamer, the only difference i've noticed between Playstation this generation and the two previous generations is the lack of exclusive third-party content. Sony's studios still churn out quality games that are usually second to none (save maybe Nintendo), and in that regard i hope they continue as they always have. i see revenue and profit (or lack thereof) as more of a determining factor of continued in-house development than winning by install base, so to me it makes little difference who's in first, second or third place.
for Microsoft it's cool that they've made a name for themselves in the gaming sector (i'll stop short of givig them kudos due to the whole RRoD fiasco) , but a huge part of me thinks this was at the expensive of not building a quality in-house development portfolio, which is all the more a necessity in a level industry where third-parties can't really afford to go the exclusive route anymore. the only thing that distinguishes the 360 from the PS3 now is Live; that might be enough for some, but for me it's not, not when PS3 has it own (albeit, slightly inferior) network that's free.
@Elex: Well said from someone who has a good grasp of how the industry actually works.
A lot has to be said about getting your box on the shelves first and at a reasonable price.. I agree, Microsoft have done extremely well and all credit it to them, but it remains to be seen whether they can do it again!
Selling more 5 or 6 million then the others doesn't make a winner. That makes a tie.
Besides, the winner is Nintendo.
No fair, you let the elephant out of the closet. It is a bit amusing to see so much virtual blood spilt over bragging rights for second place (however, coming in second probably means you ended up profitable, whereas that might not be the case in third place).
You're right, of course - neither 360 or PS3 is going to catch up to the Wii install base.
Surely the winner is the company that can boast the highest profits.
'Consoles sold' figures don't show much financially
Nothing like blowing your own trumpet is there? :D
Yeah, but that's what he's getting paid to do, right? Actually, there's nothing very controversial about what he's saying.
It's really stating the obvious - there's no way PS3 will outsell 360 by roughly 7 million units (which is what it would take to overcome the existing install base gap) in the 18-24 months remaining in this console generation. Also, Sony has freely admitted that they're taking a bigger loss with this price drop and are gambling on the attach rate increasing to make up for the difference - maybe it will, maybe it won't.
No your right, there's no controversy! i just felt like being flippant and besides outside of the bean counters and Sony/Microsoft fanboys, who gives a sh!t about the numbers. At grass roots level it make no odds to the average user as long as there is high quality games being produced. Thats surely all that matters?!
Speculating, 18-24 months in the Xbox life cycle (maybe), going on the recent rumors of a deal between AMD and MS. Although I don't see the PS3 going anywhere for a while, given that Sony have given it the ten year stamp. Obviously there will be a three of four year overlap with any new machines being introduced, but I think we're getting carried away and we'll have to wait and see.
There is lots more that both companies can be doing to make the experience better with this generation before dumping it and moving on the next.
I would never make a flippant comment to stir things up! ;)
Yeah, I think there might be a weird overlapping of generations this time. Both Nintendo and MS will likely release new consoles sometime between Holiday 2010 and Holiday 2011, but Sony will probably ride things out a few more years. Depending on which direction Nintendo goes in terms of pushing processing/graphics horsepower, this could lead to a nightmare scenario for game developers with up to three distinct technology levels (and possibly control methods) to account for on multiplatform releases.
Last time I checked, we are free to make whatever comments we like! I wasn't stirring, just cracking a funny. For a moment there I thought people would find it amusing. Sorry Admin!.
At this stage it's way to early to even start speculating on future console revisions. We know that Nintendo have plans for a Wii HD and Microsoft may or may not be updating there box in the next couple of years. But that's all we know at this stage.
Don't we already have three distinct hardware technologies? not to mention the handhelds. I'm not sure how much of a dilemma it will cause for third parties as most of the development processes are already established. I suspect that they'll be given plenty of warning and time to get their heads around any new technology that might appear. Then presumably they'll make a decision about when they will stop development on one hardware set and move operations to the next.
I think the lessons have been learnt from the whole Sega Saturn debacle, nobodies going to put hardware out there without all the third parties on board they'd be foolish if they did.
Good points, savagehenry. Particularly in the past few years, it seems like a lot of small, new developers have sprung up out of the wreckage and are gettting outsource opportunities to do Wii/DS/PSP/PS2, etc versions of major releases, so the "primary" studio can focus on the big, next gen versions.
Yeah, I've noticed that too. Makes things much more manageable I guess, it's good for the smaller guys who may not have the budget or expertise to product games for next gens.