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Friday, July 21, 2006

Microsoft Hit Estimate With 360

The company had expected to sell between 4.5 and 5.5 million units by the end of its fiscal year. The Home and Entertainment division said that “approximately” 5 million units were sold in the last fiscal year. 1.8 million of those were shipped during the fourth quarter.
-- Microsoft Ships 1.8 Million Xbox 360s in Q4, 5 million for Fiscal Year

I would think, considering the supply and manufacturing problems which has plagued the console, that some Microsoft execs must be very happy right about now. This would give credence to their early launch. Eventually the XBox 360 v1.5 will appear (Xbox 540?) which should resolve the manufacturing issues (but probably create anew the supply issues). In the meanwhile, Sony will be banking on it's long standing desire for convergence in the living room.

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Unknown said...

I know I'm a Microsoft hater and all, but this isn't good news. Those are shipping numbers, not sales. Actual sales are, my best guess, between 3.5 and 4 million. (The 4 million upper end is extremely optimistic, for what it's worth.)

I can provide a self-pimping link to my reasons why if you really want to see it.

Josh said...

I grant you full license to pimp at any moment, particularly to refute a post.

Even if they made, imo, the lower end of their estimates - I'd think Microsoft would be happy the 360 didn't belly flop on arrival. It's vitals were pretty razor thin and if they simply managed to pad their numbers a little bit for the "real" launch coming soon, I'd think they'd count it as a plus.

Unknown said...

Ok, here is my story on the sales numbers.

From what I'm reading, the actual sales could be even below 3.5 million, which shows how optimistic my assumptions are for the 4 million ceiling.

Josh said...

I'm inclined to agree with you and probably need to update my post with more reservation ... "very happy" isn't quite what intended ... "pretty relieved" is probably closer. Someone's opening a beer, not champagne.

I agree that the semantics between shipping and sold are important and seem to be pretty blurred.

I do defend the concept that they'll hit their estimates, albeit slimly, which is probably a good thing compared to the supply and quality problems the console has faced out of the gate (not to mention that's it's key selling feature - HD content - is oddly supported and hardly mainstream).