Top
460°

Microsoft "Claims" Xbox 360 Sold 8 Million More Worldwide Than PlayStation 3

Betanews writes, once again just before CES week, Microsoft is claiming victory in the game console race, at least against rival Sony PlayStation 3. And once again, veteran analyst Sharon Fisher pores over the numbers. When I was a kid, I used to love word problems. You know, "Sally is 6 years older than Jane, and Jane is twice as old as Margaret. If the ages of all three add up to 21, how old is each girl?"

That's what Microsoft's Xbox 360 sales press release today sounded like.

The report said Microsoft had sold "more consoles, games and online entertainment experiences sold than any previous year," where "life-to-date unit sales of Xbox 360 systems climbed to 28 million consoles worldwide." It also expanded "the product's lead over Sony PlayStation 3 to more than 8 million units."

Did you notice that, nowhere in there, did they say how many of the things they actually sold? But taking everything into account, Microsoft would have to have sold considerably more Xbox units worldwide -- that is, outside the US -- than Sony sold PS3s, in order to make its 8 million claim true.

But there's also Microsoft's use of that elegant little word, "sold." What is "sold"? Does "sold" mean "sitting in a consumer's living room"? Or does "sold" mean "shipped to a Circuit City, where it's currently standing in a huge stack of others on clearance, soon to be returned"? Does "sold" even mean "On a pallet packed up for Circuit City, unless they cancel the order? We have no way of knowing.

Let's do the math shall we?

Read Full Story >>
betanews.com
The story is too old to be commented.
eagle213178d ago (Edited 3178d ago )

Microsoft is lying obviously. This article shows all the NPD data for 2008 except December. Microsoft should be ashamed. I can't wait till NPD reveals their lifetime sales in America/Canada.

Also, check out the comments in the source article. Wow, even 360 owners can't stand Microsoft....lol

rucky3178d ago

Just save this article and post it first thing the result is revealed.

rhood0223178d ago

It's about time one of these articles calling out MS finally made it through.

Aaron Greenturd3178d ago (Edited 3178d ago )

Next year, we will claim 36 million Xbox 360's shipped, regardless of how many of them we actually sell.

/Edit: Below, we are proud to have you as a customer. As long as you believe that these are numbers we cannot fake, and not our financials, then you are who we want buying our products. Because you know there is a long history of console manufacturers getting into trouble for skewing data or the word "shipped"...right?

BLaZiN PRopHeT3178d ago

The are a publicly traded company. You cant fake these numbers because if you do the company will be in deep trouble.

Did any of you ever take a business course in college or are most of the Pro sony fanboys still in grammar school?

Graphics Whore3178d ago (Edited 3178d ago )

If you also claim numbers and it's internal resource inside X Corporation then it can't be investigated unless inside X Corporation and giving out public information they can deem is private data anyway.

Besides this is shipped not sold.

bviperz3178d ago (Edited 3178d ago )

That doesn't help. Which is why people ask what does MS mean by 'sold' and why they never show 'actual' numbers. Think about it. In the end, does it matter who outsells who, as long as you enjoy the game. Think about that too.

AAACE53178d ago (Edited 3178d ago )

Microsoft sux! I should just sell my 360 and the one I bought for my sons for christmas and buy a Ps3! I trust Sony more anyway. They have never lied to me! All I really need is LBP, MGS 4, Resistance 2 and Killzone 2 anyway!

I have wasted too much money on the 360 already, with buying alot of games and arcade titles and that terribly costly xbox live account crap!

Seems like Ps3 is the place to be! Free online and HOME, alot of people say the online and HOME aren't that good, but it can't be any worse than live, plus it's free! Blu-ray movies, they are still costly but they look and sound better than DVD. Free internet and other features. And lets not forget, every game on Ps3 looks and plays trememdously better than anything the 360 has!

Ps3 is the weapon of choice for 2009... Upgrade people!

robep33178d ago

Include all 360's then we can take 15 possibly up to 30% off for RROD failures so 28m minus lets say 20% means 22.4m actually out their working for now anyway!.
So a year longer than Sony 2.2m more that actually work so are they that great!

rob.

Le Idiotce3178d ago (Edited 3178d ago )

I realized the same message long ago (about 2 or 3 months ago when they claimed they sold 23 million consoles which they obviously didnt).

But finally someone with the balls to say it.

Here is what MS has been doing. They are blowing up their sales in order to try to convince investors that the underlying trend of growth as seen in January - March 2007 (thats TWO THOUSAND SEVEN) has continued to this very date. They are lying.

Since then the Xbox sales have contracted due to a number of reasons and what Shane Kim and Aaron turd are trying to do, is convince Steve Balmer and some bankers in Goldman Sachs, Bear Stearns etc that nothing is wrong with the XBOX division.

Why? They are getting shut down if they dont do that, thats why. The irony here is that most investors have already seen through their lies but MS doesnt even know it. The red flag came up when MS claimed the low sales in April 2007 were due to shipment and production problems when everyone and their mom knew they were lying.

The Lazy One3178d ago (Edited 3178d ago )

Microsoft claimes it sold 28 million. VG chartz has it within 1 million of that, it's not ridiculous to think they might actually have sold 28 million worldwide. Microsoft is only .1 million away from being up 8 million as it stands right now.

That aside, publicly traded companies do not lie to investors. You know why? lawsuits. Here's an example:

http://findarticles.com/p/a...

It is flat out illegal to inflate or deflate sales numbers to misrepresent your product in an effort to mislead investors for your own benefit. Whether or not they made up .1 million to go ahead by 8 million comes down to how well sony sold, but Microsoft and all other publicly traded businesses are bound by law to represent their sales/revenue/profit numbers accurately to their investors.

edit:
@below:

do it then... name me some bankers who think it is legal for a publicly traded company to misrepresent it's sales numbers to its investors. When you find them, ask them what they're going to do when they get fired for being idiots.

Le Idiotce3178d ago (Edited 3178d ago )

And listing another OUTSIDE source to back up MSs source, is ridiculous.

Not to mention the fact that VGchartz is highly inaccurate.

Fact of the matter is, the XBOX division has been consistently blowing up sales and revenue since last year January.

In the banking world, those are red flags.

Btw blowing up sales, is not lying.

Legion3178d ago

What is up with the article saying.."Did you notice that, nowhere in there, did they say how many of the things they actually sold?" Uhhmmmm... what are you talking about, they said 28 million!!!! And if they are 8 million over PS3 then that would equate to PS3 sitting around the 20 million mark.

I don't know how acurate it is but I haven't seen anyone trying to pull any numbers they counted to discount MS numbers yet.

Why again is this a story? We already know that PS3 has lagged during the holiday season while MS has gained. So it is plausible.

Mini Mario3178d ago (Edited 3178d ago )

Hasnt microsfot been around for a whole year longer than anyone else>?

Not that i care bout sales, its just funny to see how they spin things. The 8 million was probably from the RROD that they didnt take out of the numbers.

mint royale3178d ago

Its perfectly reasonable for microsoft to be 28 million shipped at the end of december. Nobody has any evidence they are lying and are just basing their accusations off a dislike for the company. Come on show me actual evidence they are lying?!

@le idiot - why were MS obviosly lying when they claimed 23 million units shipped in september? Evidence? No? Thought not. What if sony suddenly announce 28 million. Would they be lying too? Or would that just be perfectly reasonable? I can't wait to hear your response when sony release their shipped figures as according to many people's logic that NPD+ Media Create+ estimations for europe the ps3 should only be at 15 million.

Of course I don't actually believe that sony are on this and whatever number they say I will believe them just like MS and nintendo. Its pathetic how an upturn in xbox sales has got some sony fanboys grasping at straws and spreading lies. Oh well.

prowiew3178d ago

They are lying on sales numbers!. Microsoft are liars! Im gonna sell my 360 because of this!. Of course not.

I cant beleive how people react because of this.

Man_of_the_year3178d ago

There is absolutley nothing within this article that remotley counters the claimes of MS selling 28 mil units to date. She is just speculating that MS might be misleading with absolutley nothing to bring to the table that MS really is. She even says that she doesn't have the numbers yet becasue they are not released to the public yet to determine IF MS is accurate with stating they have sold 28 mil units. She has nothing.

Also whats with the little jabs at MS becasue they don't mention anything about the Wii and their sales - who cares - MS is up against the PS3 not the Wii. They know the Wii is way out of reach. So why should MS say anything.

How did this article get approved when there is no facts/evidence that MS is misleading. May as well been a blog using Wikipedia as its only source for past numbers.

JeffGUNZ3178d ago

No matter what accomplishments the Xbox 360 makes, it's always going to be somehow negative. When the 360 sells more then the PS3, then MS is misleading in reporting their numbers, if (probably not very likely) the 360 sells less then the ps3, then Sony is amazing and 360 sucks. Why argue? These fanboys have nothing to live for but to defend their $400-$600 dollar investment.

Everyone keeps saying that 2009 will be the year of the ps3, well I hope so because the last 2 years were unimpressive to say the least.

With all Sony's exclusives coming out this year, if this isn't the year of the PS3 then Sony is in big trouble mister.

prunchess3178d ago

Man oh Man. The amount of pure tripe America puts out is frightening!

GarandShooter3178d ago

'MS is up against the PS3 not the Wii.'

Then what's with the PS3rd crap that's spewed all over this site every day. Oh, I see, only Sony is in competition with Nintendo. Must be because they're both Japanese companies.

And how about the NXE...and avatars...and more casual games...

Need I go on?

And if the PS3 ever surpasses the 360 sales, will it be proper to refer to it as the XBox3rd60?

Saigon3178d ago

MS reports shipped...I've said this many times before...and I am saying it now...MS reports Shipped, Sony and nintendo Reports sold to Retail...It is a big differnce when you report Shipped VS Sold.

soxfan20053178d ago

Please post a link to a REPUTABLE source that backs up your opinion that MS reports "shipped" numbers and Sony reports "sold" numbers.

+ Show (20) more repliesLast reply 3178d ago
Sasanova3178d ago

the second the 8 million number came up, i was like uuuh how the hell is that possible...i did simple math really...basically it means that 360 had to have sold 1.5 million more units worldwide then ps3 to make it 8 mil. i did receantly hear that 360 just surpassed the ps3 in europe by 1 million or so...which would make the 8 million possible. however, i do not know how many people are actually playign the 360 and how many 360s are in stores, counted as sold. i heard many stores saying their 360 piles up quickly in the backrooms, not selling as fast as their restocking...and to say 17 million users have Live, its hard to imagine 11 million xbox 360s without online capability, sitting in peoples rooms playing offline...its pure lies all over

Redlight3178d ago

"i heard many stores saying their 360 piles up quickly in the backrooms, not selling as fast as their restocking"

I really doubt retail outlets restock faster than they sell. Stores have to order inventory, MS doesn't just send it to them on a whim.

Halochampian3178d ago

its really believable.

The title almost makes it sound like they sold 8 million more this year. But that isn't the case.

They are close to the 8 million above ps3 though. It could be true.

Zeevious3178d ago

or "Stuffing the Channel" and refers to a practice of shipping excess or extra units to a retailer or distributor.

I don't know enough about how this is being handled by Microsoft and their retail partners to comment specifically. Generally this results in a much larger inventory than can be sold for the retailer & a much higher number of apparent unit sales for the manufacturer.

There is absolutely nothing illegal with this practice.

Although retailers like Best Buy or Circuit City may not like a mountain of product stacked in their retail area's or warehouses this usually results as a benefit to consumers, since these excess units end up marked down to clear the inventory later.

Since game console prices are standard, you'll find them instead in unofficial bundles with an extra game, peripheral or something else thrown in.

SOLD VS. SHIPPED?
Many people have said they don't believe Sony could use a different reporting method than Microsoft...Actual consoles SOLD to consumers, not in a retail warehouse or at the store.

This is not impossible at all since each and every console you buy from Sony also has it unit serial number scanned. Sony could in fact know, down to the unit, what's sold to consumers. Walmart for instance has inventory systems accessible to any of their vendors that show exact sales by division, region, time, date, week, month, store, or even HOUR.

Each system is a completely valid method of reporting sales, though reporting those shipped does give you options that can be used to enhanced apparent unit-sales.

Technically, the truth will end up buried in some boring quarterly or annual stockholders reports that I hope you or I never end up reading.

BUT WHERE ARE WARRANTY CLAIMS?
A question I have asked a few times now, and no one seems to be able to answer is, how exactly are larger numbers of defective or warranty units accounted for? If it is really a substantial number, should these should be reported as SOLD when in fact they are non-functioning units REPLACED under warranty?

No one seems to have an answer to that question.

Everything else being reported is in-line with standard retail & industry practices whether reporting Shipped or Sold figures. It is the number of warranty units that I'd like a clear report on, because this alone will determine the true number of consoles Shipped, Sold, or Stuffed.

BIGBAER3177d ago

The accounting is handled differently on defective returns. The replacements are credited back to the retailer from the manufacturer or wholesaler. I learned that, most likely, before you were even born, back when I managed my first store (Walgreens Drugs/Chicago).

To put it to rest: NONE of the 8-million unit lead by the 360 over the PS3 is attributeable to replacement units. Neither from retaliers nor from Microsoft's repair service. These units are handled in an entirely different accounting---and reporting manner.

~~~~~

With that out of the way: NO retailer allows warehouse space to be wasted. The expense is simply too great. And by expense, I am talking about how on-hand merchandise, whether out on the sales floor or stacked in the backroom is handled by standard accounting practises for factoring store sales and performance year-on-year.

Any manager who allowed unsold inventory to accumulate in his store's backroom would be terminated befor his next performance report.

Even those with the most basic understanding of retail management understand this.

And, to take this even further: warehouse floor space is handled much the same as retail backroom floorspace. NOTHING is allowed to sit idle much less build up excesses. The costs are too high and the accounting/sales/performance penalties too great.

With that being said, Microsoft's claim of an 8-million unit sales lead over the PS3 is quite believable. Particularly when games sales numbers are taken into consideration. The 360's software sales performance is nothing short of incredible with all considerations factored in.

Wii sales are phenomenal, the 360 has surpassed all expectations and the PS3, inspite of all of Sony's blunders, miscues and missed opportunities is not doing bad at all---just not as good as it might have done.

~~~~ Beta News: All the news that's not ready for release!
The article's author should find another passtime. Her writing and reporting skills are severely lacking at best.

Zeevious3176d ago (Edited 3176d ago )

Though this still may not answer my question.

I'm not referring to STORE returns, but warranty claims, directly from<>to Microsoft under their extended 3-Year warranty for their specific manufacturing/design fault.

Those are all handled and accounted for directly by Microsoft.

My question is still how they are accounted for.

There is no official comment on this from Microsoft, other than the 1.4 billion reserved for replacement units. (Best estimates, 7 million units.)

I'd like to know if anyone can share links, references, or other reliable information to indicate how these (estimated) 7 million units are counted. Also...what is a better estimate of the number of units involved from the 1.4 billion warranty figure.

CHANNEL STUFFING:
Thank you for sharing your retail insights, but this has been a commonly reported practice for Microsoft.

Please review this list of financial service references relating to various MS Products
(Note: I don't support biased nonsense, but this was the most acessible list found)
http://www.s5h.net/linux_ne...

I realize retail & warehouse space is a premium commodity but as I noted, Channel Stuffing benefits the consumer & the manufacturer, NOT the retailer.

While I had mentioned I did not have enough information to comment specifically about these numbers and this practice, I did not mean I had NO information.

The questions was raised for me by first-hand comments of a trusted source saying they had "A Mountain of 360's In My Region" . . . (A regional products manager for a large electronics chain.)

Knowing the number of store-return's credited would be helpful, but for an accurate picture we'd need to know the larger number of returns Microsoft handled and budget for. With a known amount of 1.4 billion, that is an estimated 7 million units...with no official word of how those are counted.

SO WHAT IS IT?
Various people claim different methods, but I've seen no official number...Except:

28 million are reported by Microsoft as SOLD.
7 Million (approximately) replacements are budgeted for by Microsoft.
21 million actual units IN SERVICE ? ? ?

Is this the most probable number of operational units?

If this is NOT CORRECT, shouldn't Microsoft or someone should officially tell us WHAT IS?

If anyone has valid links, official financial statements with number of units, or other credible references please share them so this mystery figure is finally validated.

+ Show (2) more repliesLast reply 3176d ago
Expy3178d ago

Microsoft claims a lot of things...

eagle213178d ago (Edited 3178d ago )

We all know Japan isn't buying 360 and it will remain third in that region forever. Europe's magical "8 million" still is up in the air. And this "8 million lead" is not in America. So where the hell is it? Oh, Pluto. :)

pansenbaer3178d ago

Pluto is no longer a planet, so that doesn't count...

eagle213178d ago

I know, but I guess they still ship them there. :)

rhood0223178d ago

MS apparently. We get a new press release from them every other week with them claiming they've "outsold the PS3 by (x number of consoles)."

silverchode3178d ago

wish i could put microsoft on my ignore list :)

S1CKLY3178d ago

because they have to please all the fanboys by claiming that they won the console war

but we all know the sad truth. Wii outsold both console systems... combined..

militant073178d ago

actualy you dont care about the sale because microsoft claims they sold 8million console more than the PS3 worldwide

+ Show (1) more replyLast reply 3178d ago
BIGBOSS083178d ago

sony will give there sold numbers at the end of january and then we will find out if xbox 360 really is 8 million ahead or not. if what microsoft claim is true then sony will say 20 million. last time ps3 was 16.85 million wasnt it?

InMyOpinion3178d ago

How can you be sure that Sony won't inflate their numbers then? Will we see an article just like this one when Sony post their numbers?

The Lazy One3178d ago

because everything sony reports is truthful, and not only that is an accurate to the unit representation of what has been sold to consumers, not retailers.

OBVIOUSLY...

GarandShooter3178d ago

'Will we see an article just like this one when Sony post their numbers?'

I'm sure you'll find one to post. I think the other guy would like to, but he's lazy... :)