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Microsoft's Greenberg: 'PS3 Business' Is 'Hemorrhaging At Retail'

Following the release of NPD sales figures, Microsoft trumpeted its significant 53 percent year-over-year Xbox 360 sales boost -- and slammed primary competitor Sony.

Speaking to Gamasutra, Xbox 360 product management director Aaron Greenberg largely pinned the gain on continuing momentum, and said it outperformed external expectations.

The executive painted a particularly bleak picture of the PlayStation brand at retail, saying retail partners have characterized it as "hemorrhaging," in part because many existing PlayStation 2 owners are migrating to Xbox 360 rather than PlayStation 3.

"You can't underestimate that we're half the price of the PS3 at a time when consumers were looking for great value," he said. "The PS3 was down in February two percent even with the launch of Killzone 2 -- that's months of year-over-year declines. Xbox continues to head north while the PS3 is heading south. We're gaining share."

"But what we hear from our partners is that it's not just PS3, it's also PS2 down 62 percent year over year," he continued. "With that business declining, and with the PS3 business declining, it's been described to me as hemorrhaging at retail right now, and it just keeps getting worse.

"What we're finding in our research is that a large portion of the volume we're driving with Xbox 360 purchasers is actually PS2 owners choosing Xbox for the next generation. We're switching people from the PlayStation brand over to the Xbox brand."

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JasonPC360PS3Wii3188d ago

All that must have really hurt. Better luck next gen, if there is one :)

evilmonkey5013188d ago

I really end up asking myself...do I care about all this sales stuff? Not really. I'm a tech junkie and I love both my competing systems. But I want to ask this guy "hey, why did you fire all your game studios, save one?" and "where are all my exclusive games this year?".

Raz3187d ago

Pretty funny considering I switched from the original XBOX (I'd pimped it out with mods, too, so I loved it) to a PS3 because I saw what a piece of crap the 360 was. Let alone the fact that the PS3 came with everything that Microsoft made you fork out extra for (especially the hard drive - how is that an optional add-on?).

Not to mention that I still have my *original* PS3, which has worked flawlessly since day one, for a few years now (bought it shortly after launch). No repairs...no replacements...no warranty hassles.

Aaron needs to check himself before he wrecks himself - the RROD isn't exactly a distant memory, yet.

+ Show (2) more repliesLast reply 3187d ago
Immortal Kaim3188d ago (Edited 3188d ago )

Though no one can deny the Xbox 360 is selling well and had another good month in the Feb NPD's, I don't like this guy.

He displays the same arrogant nature that Sony execs were previously, accused of.

Focus on the Xbox's positives, not the competitions negatives and see how much more respect you get from the gaming community.

Edit: Would like feedback from the people who disagreed, why?

mint royale3188d ago

Greenberg is a ****. I remember feeling the same about sony exexs in 06 and it really came back to bite them in the ass. They seem more humble now so I hope they can claw back ground.

eagle213188d ago

You spend so much time talking about Sony, go make a damn game that can win an official industry award instead of the xboxkingz.com GOTY awards.

what a.......... butthead. :)

Aaron Greenterd3188d ago

It's something we at Microsoft like to call "slight of hand"

Never mind that our Xbox Division has hemorrhaged Billions in repairs from rushing faulty equipment out the door; just listen to me and believe that Sony is the one failing.

Everyone in the World of America knows that we cannot compete toe to toe with the ps3, therefore we had to get our product out early and always be the cheaper console, otherwise we would have nothing right now.

Which, lets be honest, the only advantage we have is time, but it came at a huge cost. So, as long as you believe me, and base your gaming experience on whether your company is profitable or not, then you have nothing to worry about with the Xbox 360; just don't look up actual facts on the matter.

Anyone providing actual numbers showing my company's losses due to the Xbox 360 will get their Live account banned for 1 month.

Immortal Kaim3188d ago

Thanks for the actual reply mate.

I specifically remember 'Get 2 jobs to pay for PS3' comments from a Sony executive, it really left a sour taste in my mouth.

I think Sony have learnt from these types of outburts and subsequently changed their PR approach.

Greenberg doesn't realise he is doing the Xbox brand a disservice with the constant competition bashing... As I 360 owner it actually p*sses me off. Focus on what the 360 is doing well I say :)

Madgunner3188d ago

or is this guy ALWAYS spreading FUD towards the ps3 is this like his job title?

Hey Mr.greenburg remember that interview with Adam Sesler in regards to 360's lineup, Yeah how'd that go again?

morganfell3188d ago

Money is made on games. And the two PS3 titles in the top 10 this month outsold the two 360 titles in the top 10.

As far as bleeding, looking at the billion dollar blood loss MS had experienced already. Now there is a new vampire in town called E74. And if the lord of the vampires called PS3 price cut shows up then Greenberg is really going to get himself bled dry.

Megaton3188d ago

Yeah, Greenberg's an ace sociopath and hypocrite. He was running off at the mouth about not speaking badly of competition after the first time Sony ever said anything bad towards Microsoft. Meanwhile, this guy can't keep Sony's name outta his mouth, before and after that.

Genesis53188d ago (Edited 3188d ago )

What a turd he is. Sony sold over half a million Playstations in Feb. with no price cuts in over a year. How many 360's would be selling if they hadn't cut prices.

soxfan20053188d ago (Edited 3188d ago )

Eagle21 - you're so obsessed with awards. Do you watch only Oscar-winning movies? Do you listen only to Grammy-winning recording artists? If you do, you are sure missing a lot.

EDIT - on-topic - I would like to know what reatil partners he's referring to.

StayHigh3188d ago

like i say there a lot of 360 fanboys who went to purchase their third system after their 360 died..lol.. i laugh each day when i hear another 360 crapped out..

Jamegohanssj53188d ago

I can't wait for the good 360 exclusives to roll out this year. Woot!

TGSI

Shadow Flare3188d ago

I would LOVE to see aaron greenprat's response a couple of months after the ps3 price cut. I'd imagine he wouldn't be gloating so much then. And how will ms respond to sony's price cut? Probably with another price cut of their own. Because they can't counter it with any games. Shame 360's already cheaper then a wii, otherwise a 360 price cut might have a small effect

StayHigh3188d ago

remember the 3 year warrnanty is over..expect more sales of the 360 thanks to their fans..lol..

jwatt3188d ago

I know people who want to get a ps3 but the price is just to much for them right now. They ask me what system they should get and even though Im a ps3 guy, I tell them they should get a 360. That's because all the games they want to play are also on on the 360 for instance RE5.

Once the ps3 has a price cut the value will be undeniable. I still think it's selling considerably well for the price that it's at.

3188d ago
mint royale3188d ago

Thats some nice cherrypicking there morganfell.

Dragun6193188d ago (Edited 3188d ago )

You Know What's really Hemorhaging Arron Greenburg?

Xbox 360 in Japan.

3188d ago
Jamegohanssj53188d ago

I lol'ed Walther. Bubbles.

TGSI

gambare3188d ago

"He displays the same arrogant nature that Sony execs were previously, accused of. "

he's doing an old business man tactic, when he got nothing good to say he remarks the downs of his competitor, because if he tries to say the good points of his own company he would discover that there aren't many good points.

spandexxking3188d ago

Nice to know microsoft view their customers as market share.

Immortal Kaim3188d ago

Your comments are just as ridiculous as Greenberg's. Leave the fanboy talk out of this.

XxZxX3188d ago

No worry, Greenturd, After RROD, they will switch back to PS3 and learnt their lesson. Enjoy the short moment of local victory.

Arnon3188d ago

Actually if you mean 1 individual game outsold both of the 360's games, then no.. but together, Killzone 2 and Street Fighter IV did pretty well. BUT, since we are talking about money here, it shows that third party support is going to go even further for the 360.

Also, since the PS3 is not making a profit.. I think it's safe to say for now that the 360 did rake in more $$$ than the PS3.

Eddie201013188d ago

Notice how he says the word from retail and what retail is telling him, basically saying the comments are coming from someone else not him trying to hide his arrogance, douche baggery is what I would call it. Always making comments on US sales like there the only ones that matter. World wide sales are nearly equal for PS3 and Xbox 360. PS3 is still selling pretty well in the US, especially considering the economy. hemorrhaging is a strong and inappropriate word for a console that sold nearly 300,000 in the US for Febuary.

morganfell3188d ago (Edited 3188d ago )

Cherry picking? This is why I put people on ignore. Calling out the single biggest event in the 360 history besides the launch is not cherry picking.

As for the other items, one is the source of several stories published on this site today.

Another is the NPD figures, the source of Greenberg's most recent picking at the PS3. The final item, the PS3 price drop, is the biggest rumor on the internet this week.

You can call those items cherry picking if you want but I personally have no more time to listen to an individual that doesn't like it when someone serves them an ace with their own racket.

cmrbe3188d ago

391k x360 sold in NA has roughly a 116 million sales revenue.

276k PS3 sold in NA has roughly a 111 million sales revenue.

In other words. MS had to produce and sell an additional 120,000 x360 just to get 7 million more revenue than Sony with the PS3 only.

This is not including the PS2 and the PSP which are printing money now.

3188d ago
Immortal Kaim3188d ago

The retail sales of the consoles is not profit for the companies...

'Apparently' according to a recent teardown analysis, Sony is still losing money on each console sale (which would be further exacerbated by a price cut if/when it happens).
http://www.xbitlabs.com/new...

The point I'm trying to make is that handware sales are not bringing in revenue for Microsoft or Sony (maybe a small amount for MS), so you can't look at the price of the console and its sales and get an indication of revenue. Software sales are what brings in the dollars (The Wii being the exception) :)

heroicjanitor3188d ago

As soon as a response comes out he will take the high ground and tell sony to focus on themselves... Ever hear the saying never argue with an idiot? They drag you down to their level and beat you on experience.

cmrbe3188d ago (Edited 3188d ago )

Arron was referring to hardware.

If the number for each x360 SKU is spread evenly you will get 116 million total revenue from 391k x360 as oppose to about 111 million for 276k PS3 at $399.

What i am saying is. Its odd for him to say that PS3 Business is hemorrahaging considering that the x360 is no better, in fact i think its worse considering that by my calculations MS had to produce and sell an additional 115,000 x360 to get the same revenue as 276,000 PS3.

I would be very surprised if it cost Sony more money to produce and sell 273k PS3 as oppose to MS producing and selling 391k x360. What do you think?.

The Elite might be profitiable for MS but i doubt very much that the Arcade is. So overall it evens out.

slayorofgods3188d ago (Edited 3188d ago )

While Microsoft did have a good month the noise coming out of this guy is moronic. While there has been a few (NOT ENOUGH TO DECLARE VICTORY) ps2 owners who have migrated to the xbox 360 most people are still going with the wii and are still undecided between which is better between the ps3 and 360 even today. Making the term "Hemorrhaging" nothing more then hearsay from the mouth of Microsoft.

This guy is the same sort of Microsoft person that declared an early victory in the GTAIV sales against Sony a while back. However, just recently R* announced that the sales are 50/50 split. The Xbox 360 is a fine enough system, I'm just sorry all the owners of one have this loser as their spokesman.

JokesOnYou3188d ago (Edited 3188d ago )

I call like I see it, he's no better or worse than sony PR folks, wasn't some sony exec just spouting off a day or so ago about how great KZ2 is and how ps3 was "going to arrest the momentum from competitors" blah, blah.... I mean sure sony is a bit toned down atm but what else can they do when currently they are fighting from behind, if they were still riding high from the ps2 days I have know doubt they would be every bit as arrogant or more as they have been. They didn't change their "work harder for a ps3 mentality" UNTIL circumstances dictated= NOW they are more cautious, could you imagine what kind of effect that "playstation is the only brand" attitude would have on them at this stage of the game. Greenberg is of course spinning every angle thats positive for micro,(Its his job) I too prefer if he didn't mention sony but don't give me that "OMG micro is so evil" BS when sony is no saint themselves....truth is whats really bothering the extremists is that there plenty of truth to his statements so alot of the "Greenturd" comments are basicly whinning over sour grapes(NPD).

JOY

Immortal Kaim3188d ago

Actually mate, if that article I posted is correct and Sony is losing money on each PS3 sale, then yes, It costs Sony more to sell 273K units than MS's 391K.

The thing is though, the more units these companies sell the better (even if they cost more to produce/ship than their retail price), they make most if not all their profits in software sales and licensing fees.

Those extra 120K unit sales to MS generate a lot more revenue from software (in the long run) than they do from hardware sales.

Good discussion, very interesting.

XxZxX3188d ago (Edited 3188d ago )

Sidenote: Jokesonyou is extremely forgiving with Microsoft employee. I never seen Sony PR is laughing at Microsoft. so to make Aaron greenturd forgivable, he will drag sony PR along with it. What a joke.

so 30k*4 in Japan = 120k = Recovered and Stalemate. EU however is another PS3 paradise, the SFIV PS3 even outsell XBOX 360 in UK itself. I know how Greenturd is laughing man... Well like idiot general during the war. Look at one campagin instead of the whole and declared victory.

solideagle13188d ago

after watching NPD i must say all the PS fans including myself now have to shut up about sales figures(HW + SW) and dont hype the games which cant sell we all know every time Sony SW disappoints and killzone 2 did the same thing it is like LBP which didnt show in the next month. F**k Sony your Advertisement Department is bunch of monkeys together......Sony is in deep troubles. they need a price cut and if they dont this game will be out of their hands.
Believe me i m very disappointed. i hope things will go well with Sony, my Bubbles and Disagrees.

thakns

StephanieBBB3187d ago (Edited 3187d ago )

With this kind of talk it couldn't be more off-putting. I can't believe people buy in to this guys sales talk. How about we ask him a counter question instead? When are your broken down piece of **** consoles going to be fixed so I won't have to renew both the hardware and the live fee?

SL1M DADDY3187d ago

The only region he has anything to talk about is North America. Granted, they may be the larger piece of the pie but they are not the majority of the pie. He talks smack because that is what he is paid to do so. Keep it up MS, you're starting to look like the Sony we all came to harbor disdain for and in their arrogance they soon came to realize that it is us gamers that pay your paychecks. Become more of a douche bag and you will feel the same pushback that Sony received when they came out of gates arrogantly.

TenSteps3187d ago

I'm waiting for any other site to call him out...

no one?

Oh it's Aaron Greenberg the guy that insults and makes arrogant remarks about Sony and the Playstation brand many many times before, yet he never has to deal with articles like Sony did when Kaz Hirai started being arrogant for one month.

So based from past experience I can say that, Sony + Arrogant Remarks (After 2007) = Media bashing on Sony whereas Microsoft + Arrogant Remarks = Ignored by the same media that bashed Sony.

rockleex3187d ago

So explain to me why the 360 only has about 28 million units sold so far compared to the original Xbox's 25 million?

Hell, we don't even know if those extra 3 million users that bought a 360 were even PS2 owners, they're most likely mixed with Gamecube owners too. So I'd say Sony probably lost like 1.5 million PS2 users to the 360.

Most likely a couple million PS2 owners fled to get a Wii this generation... because it was cheaper. But of course, any gamer who buys a Wii will most likely buy a PS3 or 360 later to fully experience most of the AAA games this generation.

Thats why its not smart to count the PS3 out yet. We have to see how the rest of this generation pans out, because a lot of Wii owners will be buying second consoles later on. That's when the REAL competition starts. ^_^

JeffGUNZ3187d ago

How can ANY of you be in denial or even surprised about this data? The PS3 is a victim of bad timing mixed with a bad economy. I am sick of everyone saying, "Well, I would like to see how many 360's would have sold if they didn't make a price cut." Are you serious? Microsoft is smart. They understand that in hard economic times, cutting the price of your system to HALF the price of your competitor is brilliant. Don't be mad at microsoft because they were smart enough to make a price cut. Why hasn't Sony made price cuts? There is no one to blame but Sony. For the people who bought PS3's, everyone isn't like you and may not be able to afford a system at such a high price tag. You fanboys need to start seeing past the length of your own noses and realize that Sony dropped the ball this gen.

Stop attacking the creditability of Greenberg, the man knows ALOT more than ANY OF YOU about scope and figures. He is a "big shot" in Microsoft who deals with this for his career. You people go to school or work jobs that are not with Sony or Microsoft, so you look pathetic when you try to call him out for being wrong with made up figures and changing the "berg" to "turd", real original.

The fact is, Killzone 2 did not save your system, nothing will, unless it is a price cut to match microsoft. Look at the figures, microsoft is slaughtering the Sony. It is like this month after month after month, and yet you ignorant fanboys still cry that they are fudged numbers or "you can't trust that site".

Greenberg is correct. I know that myself and 95% of my friends went from PS1, to PS2, to Xbox 360, and never looked back. Sure, the PS3 is a GREAT system, but not at the price tag with this economy. They made their own grave, stop defending them, just let them lay in it.

By the way, Sony can't cut the price down much, if they do, they will end up losing more money per system then they already are. Sony knows a price cut will not result in a huge amount of PS3's flying off the shelf. Many people already have their system for this gen, the price cut should have come at least a year ago.

edhe3187d ago

Wow.

Revenue is not profit. All your saying there is that ps3s sell less, cost more and make less money.

That's kind of what the point of the article is.

SDF self pwnage.

Rainstorm813187d ago

its seems Fanboys have become increasingly forgetul. KZ2 came out Feb 27 there are only 28 days in Feb 300k+ units in 2 days in the US is far from bad. Lets not forget the UK

SL1M DADDY3187d ago

Forget that Killzone 2 was released only 2 days prior February's close? I thought so. The PS3 does not need saving so please stop with the Greenturd rhetoric. If you are not receiving a paycheck from MS then stop with the FUD.

It amazes me how each of the 360 fans forget that:

1) the PS3 is twice the price of the 360
2) the PS3 sales are actually tracking as well if not better than the 360 sales day and date in lifetime sales
3) that console sales do not make your e-penis bigger...

In other words, give it up 'cause it makes no difference.

JeffGUNZ3187d ago

Don't give me this KZ was only out for 2 days crap, because gears opening WEEKEND it sold over A MILLION copies. I want PS3 to succeed, but they have the worst marketing department ever. 360 owners don't forget the PS3 is 2X more expensive, but that's SONY's fault, not XBOX owners or even yours. Whether you love sony or you hate sony, you have to admit, how the he11 can they justify keeping their system at such a high price when it is in last place this gen? That's just awful sales and marketing.

I just find it funny how fanboys rip apart microsoft about them being inferior, yet sony is STILL behind XBOX.

The way you fanboys hyped up KZ2, I expected it to outsell or come real close to outselling Gears 2 in its opening weekend, but it didn't, not even close. I went to my local gamestop this week and saw the shelves stocked with PS3's, I felt a little confused, because I swear all you fanboys said KZ2 would move PS3's off the shelf, haven't really seen that.

TenSteps3187d ago (Edited 3187d ago )

"how the he11 can they justify keeping their system at such a high price when it is in last place this gen?"

They already justified it, they want to break even, and they want to make sure their investors don't get screwed

I do not question Aaron Greenberg's credibility I just hate his arrogance much like Sony during the 2006 days. I hate arrogant jerks and what do I hate more? Arrogant jerks who get away with what they do. I don't think I've ever seen an interview with Aaron Greenberg where he did not take a shot at Sony, and I believe that when Sony took shots at Microsoft the gaming media was all over them even after their arrogant year(they were more humble throughout 2008).

JeffGUNZ3187d ago

Agreed.

I understand they are losing money, but just sitting back and keeping the price the same isn't going to really pull them out of the hole, it's like a catch 22. That was my original thought, it's a damned if they do, damned if they don't kind of situation.

I do believe Greenberg does take shots, which is unprofessional, but I just don't like when some people attack his creditability, I mean the man does know a lot about this issue, but you're right, he should handle it better and show more respect to Sony, Sony sure has a great track record and deserves respect.

NickIni3187d ago (Edited 3187d ago )

The PS3/Sony is doing as badly as many of you seem to think so.

Sheikh Yerbouti3187d ago

Boy that picture makes hims look like a total putz...without the article!

Nexy3187d ago

True. It looks like every company which is doing too well is becoming arrogant.

It was the case with Nintendo in the past, SONY reps were also very arrogant and now MS guys...

But hey! Every company too arrrogant gets its @ss handed back to them sooner or later.

cmrbe3187d ago

This is not counting the space required for extra 115K x360, taxes, shipping etc.

DaTruth3187d ago

I only came to this comment section to see what Aaron Greenturd(the N4G user) was going to post and thanks for not letting me down and BUBBLES!!!

"Everyone in the World of America" was laughtastic and can everyone bubble him up so he can keep up the good work.

I've been wondering where you've been at, but now I realize that the MOF(Microsoft Offence Force) was bubbling you down, so you've been saving it for when this @$$ sticks his head up from his hole.

360 pricecut and RROD is the only things bleeding....MONEY!!!

The Lazy One3187d ago

He gets quoted out of context more than anyone in the industry.

Sony's dropping YoY sales in both PS2 and PS3. That is bad. In what world is that good? He didn't even say the words "Hemorrhaging At Retail" himself; he just passed on a quote.

+ Show (51) more repliesLast reply 3187d ago
GiantEnemyCrab3188d ago

Aaron: Just worry about your 09 line-up that is looking rather weak on the exclusive side right now.

You might just be eating these words if Sony decides to drop the price of the PS3. For the price it's at there isn't a huge difference in sales between the 2. A PS3 price drop could land the 360 back in last place sales in no time.

Make sure your line-up is quality and prepare for that day and don't waste time saber rattling. It makes you look petty when you are talking about your competition more than you talk about your GAMES.

rroded3188d ago

common whoever jacked giant enemies account fess up :D

j/k seriously tho is it me or does ms get real even mouthier when their scared? a big ps3 price drop will def affect sales and with them neck in neck now...
That and where are the games for 09/10? Starting to feel like ms might b jumping ship (that or on to a new one xbox740?)
Another thing anyone noticed a lot of great deals on 360 games lately we just got ng2 n Lost Odyssey for 24.99 each n going back for fable2 that was selling new at 27.99 at our local gamestop.

labaronx3188d ago

While I agree with everything you said, do you really think if sony announced a $299 PS3 it would be that much trouble for microsoft?

and yeah Greenberg, Where is Alan Wake!!!!!

ps921173188d ago

looks out the window, "hm the world is not ending, wierd"
Have some bubbles.

40cal3188d ago (Edited 3188d ago )

Have you all noticed that whenever we see interviews from Sony's brass they talk about all of the great content that is in the pipe line of us gamers, and whenever we hear from Mr. Greenberg all we hear about is what he thinks about Sony.

Arron Greenberg, what if anything do you have in the works for us gamers? What? speak up, what was that? Yep, that's what I thought. Also if you didn't notice the PS3 outsold the 360 worldwide for the past 2 years. Again, What was that?

I also have to say that we herd a lot from this guy for the couple of weeks the 360 dose good elsewhere in the world, but not a damn thing the rest of the year.

Sevir043188d ago

Where is Shane when you need him.. All of 2007 and early part of 2008 Shane was simply bigging up the 360's platform for all they games that offered. ^^ and Sony's guys were doing the same.. This guy Turd. he is such an ass. but hey. He'll talk it up. notice how he had nothing to say when teh Ps3 outsold the xbox360 for 8 months out of the 12.. and it has been pretty steady for the rest of the year. Sony's doing pretty good selling like this. But once they drop the price then the growth occurs..

Microsoft Xbox 3603188d ago (Edited 3188d ago )

Wow! The comment of the day award goes to GiantEnemyCrab. Never thought this day would come.

There is hope for the people on this site.

morganfell3188d ago

Whoever is using that account, you should come clean about what you did with the real GiantEnemyCrab. Kidnapping is a federal offense and in many cases so is identity theft...

Danja3188d ago

Didn't you all know that GEC bought a PS3 for KZ2 and after playing KZ2 plus....Uncharted and Heavenly Sword plus Pixel Junk games he realized how much awesome the PS3 is compared tot he 360....

XD

likedamaster3188d ago

Welcome to the club GEC, you are officially a true Sony PS3 fanboy. Prepare to be laughed at with the rest of them.

For the record, I'm a multiconsole owner but it will be the same by the end of this year as it was this month and the end of last year...

1st- Nintendo Wii

2nd- Xbox 360

3rd- PS3(last,fail)

Danja3188d ago

So because he now owns a PS3 and has become rather neutral he is now a PS3 fanboy ?

I have yet to see him talk trash about the 360 and I doubt he ever will because eh still talks alot of the 360 and how much he enjoys it...

u seem more like a fanboy than GEC , always so quick to call out PS3 fanboys while ur a closet 360 fanboy... dont cast the 1st stone of ur guilty