Top
410°

Xbox One dominates the US with Black Friday Deals, gets dominated in India

NDTV says: "While the Xbox One might be King in its own backyard, the consoles sales in emerging markets like India tell a different story."

Read Full Story >>
gadgets.ndtv.com
The story is too old to be commented.
vishmarx1086d ago (Edited 1086d ago )

its pretty much the same everywhere tbh
sony has always had clear majority in countries outside US.
its because of that they can recover from bad launches like the ps3 had.
that being said, ps4 seems like a whole different juggernaut .
in a country like india which isnt exactly gaming savvy 20:1 in sales is pretty much showing MS the way out
also its hilarious how far that ridiculous report has made

Neonridr1086d ago

20:1 in sales in a country like India is but a speck in the grand scheme of things. I would hardly call India a gaming powerhouse.

Ballsack1086d ago

After all the price drops, cash back offers,multiple free games ms should dominate one month...

Kinda embarrasing the lengths they had to go to to do it but they should win november in the us

Neonridr1086d ago

@Ballsack - yep, we shall see if it was worth it moving forward.

Death1086d ago

@Ballsack,

There are two ways to look at it. As a gamer, is getting a couple free games and an Xbox One for $349 really a bad thing? Sony offered a GTA bundle with the Last of Us for $399 and a Lego Batman 3/LBP3 bundle for $399 on Black Friday. http://blog.us.playstation....

The $50 savings Xbox gamers received over the PS4 bundle makes it "embarrassing"? It's an interesting mindset to have when you think gamers saving $50 over another console is embarrassing.

Ballsack1086d ago (Edited 1086d ago )

@death read below double post,damn you n4g

Ballsack1086d ago

@death

Your looking at it from a consumer point of view

Im looking at it from a BUSINESS point of view

I have seen the xbox one for 269pounds,as a consumer i got four games including sunset and forza,a white console and FIFTY pounds cash back voucher for 329,once i claim the cashback i basically paid 280 for all of that for a system..ONE YEAR OLD, thats great for a consumer like me,but it took all of that for me to purchase one..which for a company as big as microsoft is embarrasing, the lengths they have had to go to to sell the system is embarrasing.

And all to claim bragging rights for the holidays... What about the rest of the year?What about the first 6 months of 2015 when sony have some big hitters coming out? Theres more than two months in a year,and you have to question microsofts motives when bragging rights of nov/dec is what matters most to them.

Neonridr1086d ago

@Ballsack - I guess their mentality is there are now a bunch more Xbox One users out there, so their games may start to sell more...

I'd still say it's a win for us gamers because there were some incredible Black Friday deals and I was happy to see how many consoles moved.

Death1086d ago

I missed the press release where Microsoft said they wanted to sell consoles for bragging rights. It's no secret that the bulk of annual console sales are made in the 4th quarter. Microsoft has always had Holiday bundles, this isn't unique to the Xbox One. As for the price reduction, it's $50. The trade in deal is fantastic if you have a Microsoft store in your area. I don't know how much of the $100 trade Microsoft is absorbing, but the trade is actually made to a third party.

Is it bad business? I honestly don't know the answer to that and neither do you. We will know in a few months when Microsoft posts their 4th quarter results. My guess is revenue is through the roof and cost of revenue is much higher too. I will be surprised if they post a loss though. They should still make a profit, but it won't be as high as it would have without the incentives obviously.

Ballsack1086d ago (Edited 1086d ago )

@death...

Na it wasnt for bragging rights,microsoft did this out of the goodness of their hearts!!!

Your telling me a console just turning a year with TWO official price drops,plus atleast two to three games included at no extra cost (and in certain cases cashback on top of that) isnt a unique situation?

Guess we have been gaming on different planets,im from earth nice to meet ya...

all jokes aside

im not talking about whether or not its BAD business..not sure why your mentioning profit margins,im saying its an EMBARRASSMENT
Noone can not tell me from a business point of view its not embarrassing, to have to literally give away a console with cashback,whilst still being cheaper than your competitor because of ANOTHER price drop and multiple free games just to outsell your competitor for one month whilst your competitor is still selling despite all those perks,yeh thats nothing unique in the first year of a consoles life s/

hello121086d ago (Edited 1086d ago )

[email protected] Its only a problem for people like you who spend all their time on N4G. Most people outside this site had know problem with Microsoft reducing prices for the xb1.

Microsoft has been killing it for months now with games and features people like you are just blind to those facts

Ballsack1086d ago (Edited 1086d ago )

Lol @knws the one bubble ms cheerleader...

A quick look at our history shows who spends all their time on n4g ...once again your typing crap in the face of facts.

As for microsoft killing it with games for months... Err what exclusives were released between titanfall and horizon?Thats a big ol gap of months you claim microsoft were killing it in..

Name me a feature better than share play?

Truth hurts people attached to their silicone an plastic so i hereby officially apologise to you for hurting your fragile feelings in highlighting the embarrassing attempts microsoft have had to go to sell their console... Oooo add me gamertag ruggeddabawse...lol

Death1086d ago

Come on Ballsack, where are two official price drops? Xbox One with Kinect still has a MSRP of $499. They released a second SKU without Kinect for $399. Both SKU's have a "temporary" price reduction of $50 for the Holidays. I think we can all agree the temporary reduction is going to permanent, but that is still one price reduction.

It's starting to look like you are just upset the new SKU and $50 reduction is actually increasing sales. There is no reason you should be upset the console got a $50 price reduction after a year.

As for the free games, the link I posted show Sony offering two free games also. I don't see you upset or even acknowledging this. Cashback for the purchase of a console by certain retailers? You mean like this? http://www.gamespot.com/art... Sony is also offering cash back at the Sony store. It ends today though so if you are interested, you need to act fast.

Let's stop pretending holiday bundles and cash back are only happening for the Xbox One. Great deals can be found for both consoles.

Neonridr1086d ago

Haven't used Share Play and doubt I ever will...

Remote Play on the other hand, is a god send.

Ballsack1086d ago (Edited 1086d ago )

@death

Only people upset are the people who hate hearing the truth,im stating facts so i must be upset? The mind of some gamers truly astounds me..again im looking at it as a BUSINESS POINT OF VIEW, im self employed so maybe i think beyond oh its good for the consumer and look at the whys and hows microsoft have had to do this..

Your saying removal of kinect wasnt a official price drop..ok why remove it?Didnt phil say kinect would not be unbundled like a month before they removed it...didnt we hear xbox one is built around kinect?That in itself is embarrasing... We know it was removed to drop the price,whichever way you look it it it was to sell a cheaper console because of flagging sales

If you can show me the deal i got with my xbox one on a ps4 of corse im all for it,four games special edition console,50 pound cash back for 329..cheers mate id buy another

Im not here to lick anyone's arse i say it how it is simple and in MY view microsoft have embarrassed themselves...as a consumer i jumped in an used their attempts to save face as my gain ..gamertag ruggeddabawse...yep im soo upset at their sales death sooo upset that i added to it s/

Go figure

4Sh0w1085d ago (Edited 1085d ago )

Ballsack whether you now own a X1 or you are looking at it from a business point of view or not, you do indeed sound upset that micro sales are up. Micros deals were a bit more aggressive than sonys because #1 they were selling less units and #2 they have deep pockets to afford such discounts, nothing unusual or "embarrassing" about that. As Death stated I saw plenty of great deals for ps4 as well but I don't see you raging about those deals, I also bet you weren't using words like embarrassing when sony OFFICIALLY cut the price of the ps3 by -$100 in July less than a year after its prior US November launch... http://arstechnica.com/gami... because of slow sales. The new 80 skus and so on also removed the emotion chip to reduce costs after sony prior to ps3 launch preaching about how important backwards compatibility was to their console. You see all company's re-prioritize and reorganize themselves to adapt to the market, failure to do so means heavy losses or in some cases complete failure, as someone who is self employed you should know this is a measured reaction to improve sales by balancing discounts/upfront profits vs higher game software sales, micro does it, sony does it, nintendo does it, most smart business's do it when it makes sense for them to do so, they've been in business a long time so Im sure they will do just fine financially.

I mean seriously we have so many great choices. I look at it like this; because of sony micro had to diversify and get back to offering core games we love, because of micro sony couldn't sell us a $600 similar console, wii u provides that lower price kid friendly middle ground= consumers are winning because of the great competition between all 3 companies. While sony is ahead none of the company's can rest on their laurel. Sony imo has succeeded thus far in part on their brand being stronger of course their lineup is going to have to crank out a few killer exclusives worthy of that legacy and of course eventually offer a official discount as well, micro needs to keep doing what their doing and constantly improve their brand to stay on their tail....in the end who cares which sold the most what's really important is that each will have a fairly large user base with lots of gamers enjoying their hobby.

Kenshin_BATT0USAI1085d ago (Edited 1085d ago )

I wouldn't be so sure about that, isn't India's pop. like FAR higher than the US? It's a market waiting to boom.

Neonridr1085d ago

@Kenshin - when they are using numbers like 4500 consoles vs 1500 consoles, then no, there is no room for comparison.

While the population of India is indeed greater by a significant margin, the demographic of actual gamers in India is quite small in comparison. Lots of people in India have a tough enough time affording food and water, let alone a video game console.

+ Show (13) more repliesLast reply 1085d ago
Dlacy13g1086d ago

Actually the UK also seems to have positive numbers for the xbox brand back with the 360 and Xbox One seems to be coming around.

TheMeatPuppet0071086d ago

It's retaliation from all the Microsoft call center workers there, making peanuts for income while MS continues to stack cash. They are "getting back at the man" so to speak.

d0x3601085d ago

America (Country and continents) is by far the most important market for gaming. As nice as it is to win countries like Japan or India or regions like Europe the defacto standard is the Americas. A company can be profitable from just sales in the United States. Also it must be taken into consideration that the leader in America generally ends up selling well in most regions anyways.

Both consoles are doing amazing regardless.

Ju1085d ago (Edited 1085d ago )

I doubt that. Market is shifting. US is still a the largest market, but EMEA (Europe) actually has caught up and exceeds it in some aspects. Also, the Euro is still 20% worth more than the US$ which means the margin is significantly higher in Europe compared to the US. All in all, US might work for MS because they run their books in US$, but for a company like Sony which runs it's budget in Yen, Europe (and even Japan) is a significantly larger market.

PS4: EMEA 6M, US 5M, SW: 24M vs. 19M
XO: EMEA 2M, US 4.4M, SW: 18M vs. 9M

US is the only market the XO sells - but it's still behind. It's rather disappointing that MS can't sell their product in the larger market (EU = 500M, USA = ~300M, btw).

+ Show (1) more replyLast reply 1085d ago
mhunterjr1086d ago (Edited 1086d ago )

The only sanctioned way to purchase the xbox console in India is through Amazon? Who the hell agreed to that deal?

It's like they didn't want to succeed there. Seriously, what retailer is going to advertise something that it's customers will have to purchase elsewhere. DOA.

Th4Freak1086d ago (Edited 1086d ago )

Well, its not like one of the countries with the highest poverty rate in the world has that much of a importance. Not even 10% of the Indian population can afford a $400 console.

mhunterjr1086d ago

That's completely besides the point. India has a growing middle class, which was estimated to be 250 million people in 2007.

The smart thing to do would be to grab brand recognition BEFORE they graduate from an emerging economy.

If you are trying to gain footholds outside of the US and Uk. You don't sell your console exclusively through an online retailer. It's just plain dumb.

rsnotz1085d ago

20% of Mumbai's population alone would be able to buy both the X1 and PS4 and still have room to spare to buy their own home outright. The difference is not many people here take gaming seriously like you or me; its still considered something for kids. Don't go by everything you see on TV or read on the internet.

BTW mumbai's population is around 12 Million.

nitus101085d ago (Edited 1085d ago )

The population of India is 1,251 million (as in 2013 - a quick search will verify this) so for fun why make it 2% of the population who can afford a US$400 console over the lifetime of the console (say 10 years) that translates to 25 million consoles or approx 2.5 million consoles per year which is quite allot of consoles.

It must be noted that this number could get higher with increasing population, bundles and price cuts over the life-time of the console.

Of course my statistics are spot-on as my crystal ball has never let me down yet. Ah! what's that I see "A flying car!" :)

Th4Freak1086d ago (Edited 1086d ago )

250 million people in 2007? And what are your sources exactly?

By 2010, around 50 million people belonged to the middle class thats less than 5% of the current Indian population, and its estimated to reach around 200 million in 2020.

Are you really trying to fool someone with fake numbers in 2014? Like seriously?

I agree that Sony played a better card, but again its not like Microsoft is losing anything in such decadent market.

Sources:

http://www.ey.com/GL/en/Iss...

http://genesis.iitm.ac.in/d...

http://www.dbresearch.de/PR...

mhunterjr1086d ago (Edited 1086d ago )

http://www.mckinsey.com/Ins...
http://www.dbresearch.de/PR...

Not trying to fool anyone. Simply extrapolating to now and didn't correct a typo when I decided to use one fact over another... Also not trying to suggest that there are a massive amount of Indians in a financial position to buy a gaming console. Their middle class != American middle class. Just highlighting the FACT that the spending power of Indians is growing, and that it's better to be on the front end of emerging markets. By many accounts, India Is the next China, and MS shouldn't be content to position themselves in 'catch up' territory there.

Right now, the wealthy Indians are buying PS4s... What brand do you think the new middle class is going to support when they are financially able?

Th4Freak1086d ago (Edited 1085d ago )

Did you actually read the sources that you posted? Where does it says that 250 million people belong to the middle class? Actually they agree with my argument.

I'll quote:

->Source #1:

"The middle class currently numbers some 50 million people"

->Source #2:

"While there is no official definition of the middle class,
estimates range from 30 million to approximately 300 million people. Even using the most generous estimates of the group‟s size, the middle class comprises less than 30 percent of the population."

--- Sources that I posted before ---

->Source #1:

"India’s global middle class, meanwhile, at around 50 million people, or 5% of the population, is much smaller. We expect this to grow steadily over the next decade, reaching 200 million by 2020."

->Source #2:

Along with the shift from rural to urban consumption, India will witness the rapid growth of its middle class—households with disposable incomes from 200,000 to 1,000,000 rupees a year. That class now comprises about 50 million people, roughly 5 percent of the population.

----------------------------- --

You're wrong, get over it and the worst part is that you post a source and it doesn't say anything of what you claim but reinforces my argument.

India isn't a relevant market for video games right know, in 25 years it will be but we don't even know if Microsoft or Sony will still make consoles in 25 years.

It doesn't matter how hard you try to argue, the truth is that Nintendo and Microsoft aren't losing anything there, there are countries with way bigger relevance in which they're focused.

-*****- BELOW -*****-

Extrapolate to today? Are you seriously telling me that every single report is wrong by predicting a growth of 200 million in 20 years and that India got that grown in 4 years? A country that lacks in precious minerals and only have a few natural resources? Are you telling me that a country with a weak currency that imports natural resources like Gas and its been suffering because of the fall of the price of the oil could grow its middle class population to 200 millions in 5 years? Wow dude, you must really think i'm mentally disabled or something if you think i'm eating all that nonsense.

mhunterjr1085d ago (Edited 1085d ago )

Did you read what I said? I used those to sources and extrapolated to today. Since I'm posting from mobile, I accidentally left that explanation out of my first post. And clarified it in my second.

Silly gameAr1086d ago

Let me guess this is based on that InfoScout thingy again? (Reads article) Yep. I thought so.

n4rc1086d ago

Theory?

A marketing company pays for receipts.. They got 180,000 receipts..

That's solid polling... Its exactly what NPD does.. Don't try and discredit it because you don't like what it says

thanhgee1086d ago

Their track record has quite a lot of errors if you've actually looked at their previous analysis from the last holiday season.

Ezz20131086d ago (Edited 1086d ago )

@n4rc
let's make it very simple
http://nintendoeverything.c...

But what really happened
http://www.gamespot.com/for...

there is a reason for the skepticism

JimmyDM901085d ago

Yeah but no where in their findings do they say how many of the 180,000 are console receipts. Last year only about 1,500 of their receipts were consoles and their findings ended up inaccurate. It's likely a similar sample size this year but they're misleading people by omitting that important fact. They're making it look like all 180,000 are console receipts when they're almost certainly not.

n4rc1085d ago

I never assumed it was 180k console sales.. That's not how polling works..

They got 180k receipts.. Of those 180k that bought a game console, 53% were Xbox ones..

That's it... If you choose to believe anything else, that's not the fault of the polling..

Its exactly how NPD operates only on a smaller scale.. If you want to discredit their method, then say goodbye to ANY sales forcasting.. That's my point

Its not accurate as it can't be, either is NPD.. They are estimates based on sample data.

+ Show (1) more replyLast reply 1085d ago
mhunterjr1086d ago

I don't understand the skepticism... The polling method is statistically sound, and has a much larger data sample (and thusly I'd more likely to be accurate) than most other respected polls.

kws10651085d ago

http://stattrek.com/survey-...

STAT 101 for you. The sample size is fine, but the sampling method is like an elementary school level.

mhunterjr1085d ago (Edited 1085d ago )

@kws1065

None of this is new to me. How do you feel this sampling method introduces bias?

It can be considered a random sample, because there's no reason to believe that buyers of one console are more likely to participate that others... this is similar to how most consumer research groups operate, inclusion Nielsen and NDP

kws10651084d ago

Participating for a reward? It likely attracts the people who are cost-sensitive, in other word, cheaper-is-better type, which implies the participants are more likely xbox buyers, which costs cheaper (not necessarily more valuable though).

Dramacydal1086d ago

Wow. Completely newsworthy.

Deathdeliverer1086d ago

They decided this through Target and Walmart? They wrote this like it was fact.