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900,000 Xbox Ones Went Unsold [UPDATE] - Microsoft Responds

Following the publication of this story, Microsoft corporate PR representative David Dennis issued a statement to GameSpot that aims to clear up the discrepancy between Xbox One units shipped vs. sold during the quarter.

"These units are now being sold through to customers."

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gamespot.com
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jackanderson19851422d ago

you'd hope so or that'd be quite a concern

Why o why1422d ago (Edited 1422d ago )

Spinberg

Healthy sales regardless but c'mon mate.... just be honest

rambi801422d ago

Titanfall really needs to be big for MS or a lot of that stock is just gonna sit there

NewMonday1422d ago

there is always a catch with MS, they can't help it

JokesOnYou1422d ago (Edited 1422d ago )

Clearly he's saying we sold through 3 mil by Dec 31 and the adjusted ship numbers 3 weeks later in their financial report shows what's shipped to WW retail as of Jan 21st. What's so hard to understand?

You can call a few Bestbuys and Gamestops in San Diego right now and you can pick up a ps4 very easily does that mean they are not selling?

Eonjay1422d ago

@Jokes... it the same problem systemic to the internet itself: "Conflicting reports" Some people reported it as sold, others reported it as shipped so basically you can't trust everything from everyone just because they post it on a blog.

To the point where Microsoft felt it was necessary to make a clarifying statement.

spicelicka1422d ago

The way i see it, the less they sell the more it encourages them to invest in first party to get people to buy more.

If they sold too well, MS would follow the same xbox 360 model and start investing elsewhere instead of first party exclusives.

So in the end it's a good thing.

JokesOnYou1422d ago (Edited 1422d ago )

Eonjay agreed, but I'm not believing every report from blogs just saying contrary to the comments here on n4g, it makes sense based on their financial report and this statement from micro not blogs.

spicelicka what are you talking about?, X1 has more quality exclusives available now and has a stellar lineup announced for 2014, now if you just don't like the lineup that's just your preference but pretending they are not putting out games to justify a purchase is not true.

truefan11422d ago (Edited 1422d ago )

Lets just be honest for a second no fanboy stuff. In retail there is a manager that places weekly orders, for items that are currently out or in short supply. Microsoft cannot 1. just give xboxes away and report them as sold, that is illegal as MSFT is publically traded, they would have to mark donations or some other account, but not a revenue account. 2. If consoles were piling up retailers wouldn't order anymore consoles. I agree selling 3.9 million to retailers is not the same as sold to customers, but based on ordering when needed, 900,000 xbox ones would not pile up. I give you 200,000 max, but I even find that many hard to believe. Then again this is the same site that thought consoles could leak solution. Also year end is just a day, so even though they were sold to retailers for the Christmas season 2013, sales to costumers will actually be reported for January 2014, hence looking as unsold for 2013. The sales process is not immediate it takes at least 5 days to go from MSFT to the customer.

gaffyh1422d ago

What's weird about the update is that it doesn't actually deny anything, it sort of confirms that basically yeah, there were 900k in retail channel.

I don't see why they even responded imo, they just seem to make things worse when they comment.

cleft51422d ago

No wonder I see so many Xbox Ones at my local stores, like Target.

MannGamer1422d ago (Edited 1422d ago )

@JokesOnYou
The report is for their second quarter (Q2) which starts in October and ends in December 31st. There is no January data in there.
You really think they would presents such a long report with all the data for the whole Microsoft (phones, tablets, Xbox Division, Software, Windows) for the past 3 months and add the 21 days of January??
Again the 3.9 Million shipped is for their second Quarter. January data is not included at all.
Now to agree with you a little,those 900,000 Xbox One probably didn't make the shelves by January 1st. They are selling as of now and even with only 100,000 Xbox One sold per week there would be less than 600,000 sitting as we are speaking now.

No91422d ago

The biggest sign that PS4s are hard to come by and Xbox Ones aren't, is Gamestop are selling regular basic Xboxs, but you can only buy a PS4 as part of a bundle, they know demand is high, they won't sell you just the regular 399 console.

RiPPn1422d ago (Edited 1422d ago )

@JokesOnYou: I though Microsoft quit paying you guys, or is it just the youtubers?

slapedurmomsace1422d ago

@no9

Thats just not true. Last Friday I bought my PS4 at gamestop by its self.

No91422d ago

@slapedurmomsace

*Sigh* I'm looking online right now, we can't account for individual stores, go to Gamestop.com and see for yourself...

Bigpappy1422d ago (Edited 1422d ago )

A lot of people are buying PS4's. That is true. A lot of people are buying Xbox one's that is also true. You can easily find an X1 in the U.S. This is true. It is more difficult to find PS4's in U.S. I would think this is also true. I said think because I have personally not tried to find one. What's more, the PS4 is in over 30 countries, where as X1 is in like 12. You would expect them to not be able to supply at the same level as X1.

People try to play this as a badge of honor for PS4 that PS4 has shortages, when it was planned that way by Sony. They know what spreading yourself thin means.

Visiblemarc1422d ago

The argument isn't that sales are weak, they aren't. The issue is how many of us were skeptical about claims made by Microsoft that implied "sold through" numbers when we all kept seeing so much stock in stores and the individual country sales numbers added together fell like a million short.

This is all just speculation a lot of us do out of interest in the industry (not to mention corporate honesty. The ultimate oxymoron I know.)Then on forums like this we were told that Microsoft would mislead this way and "never get away with it" and we were. "paranoid fanboys" (I like all platforms, so that one is extra annoying).

So now that admissions are being made that these numbers were not sold through but instead shipped, people are "told ya so" mode. Can't really blame them.

Eonjay1422d ago

@Big Pappy I disagree. I don't think they were prepared for this kind of demand. Last year they made an announcement that they had raised the forecast of PS4 sales to 5 million by 3/31/2014. They will have that before the end of January.

Five months would have been a record. Two and a half months is outrageous. How can you say they spread themselves too thin when they have sold more than Microsoft has shipped? By 300,000 at least. Thats on top of the million+ advantage they already have.

What does that say about demand when you have sold more to customers than you competitor has sold to retailers? How can you be spreading yourself too thin and still have an advantage in every major market where you are both available?
Sony is executing incredibly well.

TheGreatAndPowerful1422d ago

So they sold 3mill to customers and not 3.9? 900k are currently sitting on store shelves. Damn that's a lot of product to have laying around.

TheGreatAndPowerful1422d ago

PS4 is selling in 53 countries and Xbone in 11 last I read from some gaming site if anyone has official numbers please post them up.

b777conehead1422d ago

no9 your full of it. gamestop.com shows a ps4 by itself 399

fanboybeatdown1422d ago (Edited 1422d ago )

so wait.

MS sold 3 million by dec 31st and then shipped 900k more for January?
ISn't that exactly what they are supposed to do?

What's so hard to understand?
Why do the PS fanboys need to make up stories and spin negatives?

Some of you PS fanboys sure are scared.

Incidentally, in Australia, the XBO is sold out. You have to preorder it everywhere, even at $599.
I do wish they'd send some stock over here.

Exquisik1422d ago (Edited 1422d ago )

@b777conehead

Actually, it says 'Not Available'.

http://www.gamestop.com/ps4...

But the bundles are available.

http://www.gamestop.com/bro...

AndrewLB1422d ago

Exactly. People seem to not understand that if retailers receive a million consoles the day before the fiscal quarter ends, it's a guarantee that a large quantity of unsold consoles will be out there.

Microsoft should have launched in 4x as many countries to intentionally create shortage like Sony did. Apple does the same thing with their phones and pads, because Apple drones much like the Sony variety are notorious for waiting for days in long lines in front of stores to get their products. And having images on the news showing these people waiting in long lines is wonderful free advertising for your product that's in such high demand.

hakeem09961421d ago

You people always focus on the negative when it comes to MS .Nevermind the fact that both consoles are neck in neck in sales even when SONY is out in more territories .Never mind the fact that the XBOX is a success despite all that was said, but noooo let's talk about how 9000.000 xbox went unsold .We all know that most gamers including me haven't made the jump to the new Hardware yet because there's no must have games right now .There's no reason to pick up a XBOX 1 or a PS4 if you not an early adopter .there's better games coming out on old gen than new gen right now . Only game that might get people to jump to the new gen is TITANFALL .Im waiting for a Titanfall limited edition bundle to pull the trigger on getting a Xbox and i'm sure a lot of people are doing the same thing and i'll get my PS4 with the New Uncharted or if gaikai turns out to be a hit even thought i would have preferred backward compatibility .hope SONY doesn't try to screw us up in the prices.

No91421d ago

@Exquisik - Thank you

@b777conehead - I'm full of it? what's that? Full of being right? You just prove that on the internet, you can be 100% right and people will still say you're wrong! Gotta love it!

Saigon1421d ago (Edited 1421d ago )

I am sorry, I am trying to figure this out. How can you intentionally create demand? Spreading yourself thin does not intentionally create demand. Why is that so many people are making these assumptions or excuses to why Sony is selling more. Looking at the 2 strategies between Sony and MS; MS focus is mainly the US/NA. They do not care about the other parts of the world, except maybe EU only because that is where they have high sales. MS critical areas for sale is NA and EU The other major and minor countries for MS are mainly Sony territories and always have been. The problem is that its not reported as much as the critical areas. It looks like MS choose to launch in the territories that they sold a great amount of consoles in. Sony Launched in 2 out of 3 of its critical areas (US and EU, Japan joins soon) and launched in most if not all of its major and minor territories. Sony has stock, the problem is that demand is higher than the supply. In Economics 101 you will learn all about Supply and Demand; Learning what causes demand as well as supply shortages.

I could understand the claim if Sony were only selling 1 million consoles a month but we all know that is not true. Why intentionally create a demand and then raise your sales forecast before you launch the console? Intentionally creating a demand is a false assumption and people need to stop using it.

Sick of all the SonyToo comments. This article is about MS and how they overstocked their inventory and couldn't get there perspective numbers correct.

FamilyGuy1421d ago

Retailers thought they were going to sell faster and just agreed to buy so many. Stores having 6-15 Xbox Ones just in storage rooms waiting to be sold and MS brags about it but:
1. It hurts retailers and
2. They won't be shipping much else out with so many sitting at retail.

MS is gonna sit on that shipped number till retailers sell that supply. You're gonna see them focus on sales at that point rather than shipped because they won't be shipping for a while.

frostypants1421d ago (Edited 1421d ago )

Pretty weak spin effort by their PR rep. "Er...we sold all we could, and these will eventually be sold to people". Mmmk...

In any event, I *finally* saw some PS4s on a retail shelf, but I think it was just timing. Saw 4 of them at a Target mid-day on Thursday. They were gone the next day.

And yes, they always have several Ones just sitting there at any given time.

I said it several times, I'll say it again: the demand for these two systems isn't even close and only production limitations are keeping the One within shouting distance right now.

SITH1421d ago

I do not care what Microsoft sold. I do not get a dime. But at least they are not in danger of bankruptcy no matter how good or bad the xbox one does.

+ Show (26) more repliesLast reply 1421d ago
marinelife91422d ago

I saw plenty of Xbox one's at one of my local Best Buy's but no PS4s. They were even sold out of DS4 controllers.

MysticStrummer1422d ago

Same here. Best Buy and Fry's have lots of XB1s here, and Best Buy has an XB1 display front and center when you walk in. That made me laugh when I saw them on the shelf next to the empty PS4 shelves.

JeffGUNZ1422d ago

It's really shame Sony can't keep up with their product demand like Microsoft can. Only on n4g can MS be ripped apart for producing enough product for demand. Maybe sony shouldn't have launched in triple triple the regions at launch.

GTgamer1422d ago

@jeffGunz
You do know that Sony launched in more countries and is selling more than MS rite? And Sony demand is so great that their Console sells out every time its restocked unlike MS who has 900,000 laying around :/ and they launched in less places So Sony is doing a hell of a job keeping up with demand.

MysticStrummer1422d ago

@Jeff - It's a shame that MS is outproducing demand and selling fewer units than the much harder to find competition.

Angeljuice1422d ago

@JeffGUNZ

It's a lot easier to keep up with demand when that demand is smaller. I'd rather be in Sony's shoes right now.

Ju1422d ago

It doesn't really matter if more countries or not...Sony is actually building more - lets say those 3.9M vs. the 4.2. Logistically this is way harder to sell those into more markets. And yet they make more and sell more.

cellur1111422d ago

The only place that had a ps4 was gamestop and they had 1 in stock, every other store like walmart and best buy had around 5 xbox ones left.

DialgaMarine1421d ago

@JeffGUNZ http://gamrconnect.vgchartz...

Because that's keeping up with such high demand right? I mean those Xbones look like they're flying off the shelves. Sony's doing such a terrible job keeping up with demand, because the demand is unprecedented. It's literally the fastest and best selling home console in history for it's respective time frame. You're just asshurt and can't accept it.

indyman771421d ago

@jeffGUNZ so it is ashamed that Sony shipped more PS4's Then Microsoft Shipped xbox ones? you know they sold more than Microsoft even shipped right?

+ Show (6) more repliesLast reply 1421d ago
Mr Pumblechook1422d ago

What's funny is that he explains the unsold units as not being unsold but that Microsoft never had enough time in the period to sell them! PR speak at its best/worst.

Prime1571422d ago

Thank you. Either way it's bad if you get down to it... the way say it it sounds like they pushed out 900k last minute to make themselves look more favorable. That sure gave a lot of fanboys some some, "I told you so" moments (which were all annoying moments much like Sony fanboys saying, "ps4 is the future..." I can't bring myself to finish that -.- ).

Jdoki1422d ago (Edited 1422d ago )

@truefan1...

You are not completely correct.

I am not suggesting MS are doing this, but there is something in supply chain / logistics called 'stuffing the channel'. I know this as used to work in Logistics for a large company where this occasionally happened.

Stuffing the channel is where a manufacturer will (normally just before announcing financial results) get retailers to take more stock than the retailer knows they can sell. It is not illegal at all.

So, you may be thinking 'Why would retailers buy stock they know they won't sell'... Well, here's where it gets shady (but still not illegal). The manufacturer will come to some agreement with the retailer. This can be something like paying for the warehousing costs for the retailer; or giving a discount or incentive; or by having an agreement where the manufacturer buys back the stock (after the financial results have been announced). The units are then just transported to another retailer who does want the stock.

All the big chains will have stock allocated centrally. Local managers will have almost zero say in how many units to take - so they will be completely unaware of this practise.

The manufacturer benefits in the short term as they can book the sales and claim the money for a particular month, but they know full well that it'll hurt them the following month.

kopicha1422d ago (Edited 1422d ago )

@JokesOnYou

if you really understand what spice is saying, it is correct to a certain extend. your comparison is not very good really. 360 has a similar history. they started with lots of good line up and exclusives when compare to PS3 during the first 2 - 3 years. Which looks good like what you are trying to point out about XO's 2014 line up now. But let's rewind the history and look again, MS indeed drop the ball after the first few years and end up focusing in other area (hello Kinect?). And that's when PS3 caught up and pretty much overtake the exclusive games department. That is fact and cant be dispute. Considering that track record, simply based on 2014 line up to determine the future is pretty dumb imo. Especially when we are going to live with the console for at least a couple of years. So it is way too early to determine the games for now.

clonerz1422d ago

@ jokesonyou I've noticed you posting on here all hours of day and nite on here is this your job or something because most people come here voice an opinion on occasion not you here everyday like you haven't got a life do you really even play games cuz I don't see where you find the time to do that seriously when do you find time to do things when you are on here all the time

JokesOnYou1422d ago (Edited 1422d ago )

clonerz I have a great job which I've said before even pays me to go to other locations to provide service and training, it's especially those times like this past week when I can't game that I visit this site even more, then sometimes I'm more active when I've played alot of my already owned games that I start looking forward to what's next, so I come and go, either way whether it's work or gaming fatigue I always have my Galaxy S4 to check gaming news/internet and comment as often as I please lol as long as my job gets done no one questions why I'm on my phone so much. I'm sorry for those who have to wait for their lil sister to get off the computer or go to the public library to use the internet Iam connected 100% of the time.

Horny1421d ago

Most people have access to computers at their jobs or have smart phones so it's not hard to stay active on the site.

Anyway, selling selling this much product to the the retailers will benefit them in January but they will take a hit next month. However, it looks good for stock holders at at the moment.

showtimefolks1422d ago (Edited 1422d ago )

i posted it here that as of early January xbox one was at 1.7 million sold not shipped. Courtesy of my Best friend who is the GM of all the stores in state of Louisiana

no doubt xbox one has done well but all these numbers of 3.2 are wrong. also shipped is not the same as sold. Gamestop only pays MS,sony and Nintendo what they sell. So until a console is actually sold, no one gets paid anything

how can MS dominate the US market and than have such a huge screw up. every store within 200 miles of me have plenty of xbox one's yet most get ps4 and have lines the night before to be sold in the morning

Offtopic:

i have big hands and am having issues with xbox one controller thumb sticks, xbox360 had a little big area to put my thumbs. Am i the only one with this issue?

also i believe a $399 xbox one without Kinect 2 would do really well but MS is too stubborn

jackanderson19851422d ago (Edited 1422d ago )

where did you pull 1.7 from? MS have confirmed they've sold through to customers over 3 mil consoles (even included a link for ya http://news.xbox.com/2014/0...

i don't know much about america but i doubt your friend is the GM for all gaming stores in louisiana

Also your 1.7??? NPD has confirmed at least 1.9 to 2ish so there goes that credibility

and i'm sure your not the only one having issues but the general consensus is that the controller is pretty damn good

finally no-one in their right mind is saying shipped is the same as sold but MS have sold the stock to the stores... there's two types of sales by hardware manufacturers, consignment or sales... consignment is effectively renting for free (think they pay a flat fee) then giving the proceeds once it's sold.... straight out selling is what most hardware manufacturers do when they know they've a product that's in hot demand.. i doubt Sony or MS had any stock on consignment seeing as the new consoles were amongst the most talked about items last year, there hadn't been a new console from either in 7-8 years, both had massive pre-orders and the fact both are selling quite well right now.

you may think MS are lying but it's pretty illegal to lie on official investor documents and i doubt MS would risk it for one of it's worst performing divisions.

showtimefolks1422d ago

jackanderson1985

the number from someone who runs all gamestop stores in Louisiana. Who recently heard that MS have shipped more than 3 million but sold actually 1.7 million consoles.

i said early january 1.7 million so by now it could have sold anything pass that

i just have big hands so i am having issue with thumbsticks, other than that the controller is very good

PSVita1422d ago

In other news WTH ever happened to Kinect?? There's never news about it...EVER. Where's the games for it? Where are the updates or tech demo? Even Sony had the Playroom and I think the wiiU came with some kind of demo too. Why was there so much focus on kinect before it released and now everything quiet? Wasn't it suppose to justify paying an extra $100 for the XB1? Voice commands are cool but the PS4 can do that for free too?

What am I missing here?????

frostypants1421d ago

Yep. It's the 360 Kinect all over again. Just about everyone saw this coming. Devs won't know what to do with it beyond little gimmicky flourishes here and there.

AngelicIceDiamond1422d ago

According to Aaron Greenberg those 3.9 are sold not shipped.

http://www.gamepur.com/news...

LeCreuset1421d ago

People down voted you without explaining why. Greenberg was spinning. He was talking about sold to retailers, which is shipped, not sold through to consumers. That's what the guy he replied to was calling him out on, and that conversation goes on for a while with that guy calling him out on the deception, and Greenberg shuts up. Notice that the PR rep, who acknowledges remaining unsold units, used the words "sold through."

Retard1421d ago

Doom & gloom! All is hopeless.

What a joke xbox isn't dying anytime soon, especially if it dies as slow as Zune did

3-4-51421d ago

XB1 is selling fairly well considering how little games there are for it.

It's not as much as Microsoft wants it to be or as much as they thought it would but it's alright.

I think it's obvious Sony has/d the better strategy and so far, the are leading in the first inning.

Inning 2 is coming up and we have 9 to play, so anything can happen.

A lot of game time left.

+ Show (8) more repliesLast reply 1421d ago
1422d ago
curtis921422d ago

It's like trying to get a straight answer out of a politician.

Gamer-401422d ago (Edited 1422d ago )

End. X1 flop.
I buy WonderSwan.

Edit.
No, I buy C64 again.

kenshiro1001422d ago

I lol'd.

I seriously lol'd.

It's like the movie 'Liar Liar'. Gotta scrutinize the guy to get a straight answer out of him.