Xbox 360 sales drop 61% – Micrsoft losing footing, or is the niche almost full?

Monday, Jul. 23 2007 | Author: Michael

With 11.6 million Xbox 360s already sold, is it any surprise that Microsoft’s game console is selling less than it was last year? A new report from Information Week casts a bad light on the Microsoft console, claiming that the 61% drop in sales is due to mounting problems with the machine.

Now, there are clearly some problems with the Xbox 360, but Microsoft has made efforts to fix this by extending the warranty for the console to three years. There have also been two class action lawsuits filed against the company claiming that the system damages games by scratching them.

Can Sony’s temporary price cut on the PS3, cut further into the Xbox sales numbers?

Personally, I think the Xbox 360 is going to continue to see a decline in sales, simply because the gaming market isn’t THAT big. Yes, it seems huge…but isn’t 11.6 million consoles sold a HUGE number? Especially when you look at the price of the systems. The current generation of game systems are incredibly expensive, and to fully enjoy everything they have to offer you have to have HD TV.

Not every household has HD, and even then, not every household can fork over the cash for an Xbox 360 or Playstation 3.

We’re not seeing the same problem with Nintendo, because they have chosen to go a different route, and produce a lower cost system that comes packaged with games. Their system appeals to a much more casual gaming market, but the Sony and Microsoft systems are still catering to the “hardcore” niche.

Now, don’t get me wrong, I don’t want to see casual gaming replace Gears of War or anything, I just don’t think that Microsoft’s sales are slowing down because of bad PR…I think they’re slowing down because there are only SO MANY people out there that want them.

Share and Enjoy

Wal-Mart and Best Buy Drop Xbox
Xbox 360 price drop confirmed
XBOX Live Hits 1 Million
PS2 Outselling XBox 360 In US
Xbox 360 costs $715 to make?

Hope you like that post!

Forever Geek is a resource for all things geek. You can stay tuned by having the latest FG news delivered to you for free via RSS.

Category: Uncategorized
Tags:

2 Responses for "Xbox 360 sales drop 61% – Micrsoft losing footing, or is the niche almost full?"

joecab

July 23rd, 2007 at 1:42 pm
1

If there’s a new game that looks really good, isn’t that going to make you finally plunk money down for the console?

So isn’t the better question “Are there any killer games in the pipeline?”
altered_mind

July 23rd, 2007 at 5:21 pm
2

I would have to agree. Most people still view the prices of both the PS3 (even after a price drop) and the Xbox 360 as being much too expensive. Think about the people who play these games. Sure there is a very large adult audience (much larger than in years past) but in the end you can’t expect those other casual gamers, those who are probably more comfortable with purchasing something like the Wii, to anticipate the same titles that usually appeal to a more hardcore audience.

I think the people who would probably buy a new high end console regardless of its price have already gotten what they wanted and now only await software. So of course the unit will begin to take up more shelf space while the consumer waits to buy games and in many cases another system (which just so happens to always be a Wii.)

The fact that PS3 and Xbox 360 target the same, older crowd probably doesn’t help matters. They’ve almost trapped themselves in this corner while Wii takes advantage of everything else.