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Xbox 360 Experiencing 'Stagnant' Demand, says Pachter

From GameDaily:

Following the NPD's July video game sales data, which revealed just a bit over 200,000 units sold for Microsoft's Xbox 360, Wedbush Morgan Securities analyst Michael Pachter has proclaimed demand for the platform to be "stagnant." Rumors have swirled that Microsoft is preparing to cut prices across its hardware SKUs – a move that UBS analyst Ben Schachter believes would have a "significant impact."

Pachter commented, "Xbox 360 hardware sales were again lighter than we expected, indicating that Microsoft may be experiencing stagnant demand. The company cut the price of its Xbox 360 Pro (20GB) by $50 to $299 in July, but demand remained fairly flat. We do not expect a significant bump in August with the release of the new Pro 60GB at $349. We expect Microsoft to reconsider its pricing strategy, especially if sales of the Xbox 360 continue to lag sales of the PS3."

Despite a slight slowdown in hardware sales overall for the July period, Pachter believes that "underlying software sales strength along with increased hardware supply position the industry for continued strong sales through 2008." He said that his current software sales growth forecast for 2008 (which includes PC games) of 19 percent is "clearly too low" and Wedbush will issue a revised sales forecast in the coming weeks.

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gamedaily.com
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sonarus3745d ago

This from the guy who overestimated 360 numbers?

So far this yr this guy has failed every month except for MGS4 month

Mao3745d ago

Patcher's about as reliable as VGChartz for sales forcasting. I now question his overall knowledge of the current market conditions.

chaosatom3745d ago

he should be categorized as a rumor, lol.

SpecialSauce3745d ago

i wonder what it views on the PS3 sales would have been? phenomenal maybe?

mikeslemonade3745d ago (Edited 3745d ago )

Pacther stated a fact. He didn't make a numbered prediction in this article.

The 360 is pass its prime it will sell less and less every year from here on out. Gears 1 and Halo 3 are as good as it gets sales wise for the 360.

And the high price of the PS3 obviously isn't bothering people because it outsold the 360 in America even though it's $200 more(80gb is the preferred sku). The PS3 finally is showing why it is a better value than the 360.

JasonXE3745d ago

ndp only counts america, vg counts in canada too. Poor canada.. ><

DaKid3745d ago

So if Pachter said this does that mean that the 360 is doing great? I kid, i kid. This guy has got to find a new job, I mean I am an Economic major, and to be wrong as much as he is I wouldn't have a job.

Chuck Norris3745d ago

The only thing that I've learned form Pachter is to never trust Wedbush Morgan Securities with my money.

The Lazy One3744d ago

That's not going to happen. All three systems will increase in sales later in the life cycle building up to the next gen (except maybe wii, which will probably shift around the same sales because they're already pretty high).

There is absolutely no reason for 360's sales to start to drop. The price of the system is going down, reliability is going up, new services are becoming available, and there are still great games coming out for it. Just like sony and nintendo, as long as M$ continues to support the system, there will be sales.

Here's something to consider about 360 sales. Sales this july are up around 15% over last year (170k sales in july 2007 to 200k sales in 2008). There was a price drop, but it came with the announcement of a new upcoming price drop that makes this one look like an only ok deal. There's also the fact that there were no games for the 360 lately (NG2 excepted, which hasn't been well advertised, and is greatly overshadowed by MGS4).

360 is not failing. Don't confuse doing less good than other consoles as doing bad.

mikeslemonade3744d ago (Edited 3744d ago )

Failing is dropping out like the Dreamcast. I said the 360 is past its prime and every year they will sell less. Okay first year they sell 9 million and then 20 months after that so far they have reached 20 million just recently. That's only 11 million units in 20 months compared 9 million units in 12 months. And why did you pick the month of July to say the year over year increase. Just talk about the full year because months fluctuate because in August/September of 07 it was Halo 3 and Bioshock which did way better than what Fable 2 is going to do in september of 08. In 2009 the 360 will sell less than it did in 2008 and so forth.

Where as when you look at PS3 they sold 9 million first year and they will sell more than 9 million this year because they only need to sell 3 more million more this year and with LBP that is gonna be easy.

The Lazy One3744d ago

they are selling better this year than last year significantly. Compare NPD this year and last year. Sales aren't slowing down. They are continuing to increase year after year with the exception of the overshipping in 06/07.

+ Show (8) more repliesLast reply 3744d ago
doshey3745d ago

stop embarrassing urslef

NO_PUDding3745d ago

He might listen if you stopped embarrassing 'urslef'.

I am not one to comment on bad typing, but I will, and using a 'u' instead of 'you' kills me. So hang your head in shame.

Chandresh Patel3745d ago

But his July prediction was incredibly wrong.

TheDeadMetalhead3745d ago (Edited 3745d ago )

Everybody must bubble down PoG, pp, GOTY 2007, and any other annoying douchebags with more than 2 bubbles! Spread the word! PM your friends! We will not let them win with their 47 accounts!!

I mean, C'mon, people! I put this Avatar on just so you'd listen to me!

EDIT : Oh, crap! This was supposed to be in Comment #2! Sorry!

LoVeRSaMa3744d ago (Edited 3744d ago )

Soon they will be giving the xbox360 away with happy meals =]

although that would not make me too happy tbh =/

I'd prob ask for a cheap plastic toy, with red flashing LEDs insted....

[=

sak5003745d ago

"Pachter commented, "Xbox 360 hardware sales were again lighter than we expected, indicating that Microsoft may be experiencing stagnant demand"

Finally admits he was wrong for once. Now go back to financial analysis class.