Microsoft Xbox 360 sales plunge 60% as problems mount

Microsoft's growing troubles with the Xbox 360 video game console appear to be catching up to the company. Sales of the gaming machine plunged 60% in the fiscal fourth quarter, Microsoft disclosed yesterday.
In its earnings statement for the quarter, Microsoft said it shipped 700,000 Xbox 360 units during the period, compared to 1.8 million in the fiscal fourth quarter of 2006 -- a fall off of 61%.

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Syko4169d ago

Clearly it's time for a price drop. Let's see how it goes August 1st. I want an elite with a 65-nm chipset for $399. Then I can give my timebomb to my little brother for $150-$200, LOL

NTSC-J4169d ago

There is no doubt the Red Rings of Death have put a negative light on the 360. On top of the price drop if and when it happens, MS needs to announce the arrival of the 65nm chipset. Instead of just phasing it in. I personally love the system, but the hardware is prone to failure at a high rate. Really it is more about publicly saying they have fixed the problem more so than the 3 year warranty and such. But I agree a price drop would help to a degree.

marinelife94169d ago

Just go to 65nm and I will buy one as will probably a lot of other PS3 owners. I don't care about the price I just don't want the hassle of dealing with MS's customer service returns department in three months.

jromao4169d ago

Isn't a price drop that fixes the hardware problem, who wants to buy bad and buggy hardware ??

The Elite model isn't much diferent, that new model didn't prooved nothing yet, mainboard keeps the same with diferent ports.

Buy a PS3 and "kill" the bug.

Rockstar4169d ago

To the 65nm and please try to get rid of that horrific power brick too.

Good as sold if that happens.

ALMIGHTYPS34169d ago

Ahhh XBOTERS,and to think you were on top of the world just months ago when the PS3 was first released,talking major shizit!!!Let me see,where should I start,hmmm.Your top dog just took off(laughter),an insider dumps a boatload of stocks(more laughter),more than a 3rd of your systems are burning out(even more laughter),9 billion in losses so far(still laughing),the 360 is barely outselling xbox 1(laughing still),Japan says hell no!!!(lol),Xbox Elite?(hilarious).I better stop now,my belly is starting to ache from so much laughing.Sure you got nice games but can you play them?(LMAO)As soon as Sony starts flexing thier muscles(VERY SOON),defectbox360 will be dropped to 3rd string.PS3 IS A BEAST!!!!!!!

Itachi4169d ago

yes it will change microsoft will keep on selling the 3fixme at the rate of the xbox thats 11 people a month

Rageanitus4169d ago

As a gamer and many others we knew that xbox is a defective product.... not matter how many xbox fanboys deny it. But the difference now is that more of the general public knows that it is a defective product. It does not help when they announched a 1.1 billion extra loss for their gaming division based soley on the repairs. This is big time negative publicity, especially when MS has taken strides to gain public awareness that they have a gaming division. It is great that they gained market share, but with this negative publicity asa first mover into the next gen gaming market it can also be their downfall.

IMO sony is playing their cards very carefully and it shows. They are showing what we want and stabbing at the negative aspects of their competition.

With all this bad news from ms recently I can picture the 360 having a much shorter lifecyle than the ps3. MS did one thing right, they gained great exposure but at the cost of billions ... If ms wants to keep the 360 in the market for a long time they better redesign it in such a way and emphasize the reliablity of the product rather than the orignal plan of just placing a new chip inside. Not everyone knows what is inside a computer box.

Rockstar4169d ago

I guess people really like that power brick...either that or the 90nm chips.

eLiNeS4169d ago

from Costco or if you want an Xbox 360 NOW and not have to wait for a more reliable one to come out. You get a lifetime warranty on most stuff at Costco and the Xbox 360 is covered at no extra cost. I have been buying my Xboxes there for the last 6 years and no matter how long I've had it they will take it back if there is a problem with it.

+ Show (6) more repliesLast reply 4169d ago
Odion4169d ago

I am betting the Sony fanboys start calling for our death. because they've won 2 weeks out of this entire week.

PS360PCROCKS4169d ago

Drop the price and make it more reliable and I will get a new one since mine is broken and Microsoft refuses to fix it!

MannyHarlem1414169d ago

lolz does the ps3 beckon you? or are you turned off by the price like the masses

Syko4169d ago

And why wont MS fix it? Or is it they will fix it for $140?

techie4169d ago

He has a ps3. Please stop all this d1ckwaving

PS360PCROCKS4169d ago (Edited 4169d ago )

Thanks deep. Yeah, I have both man...

edit:: @syko my DVD drive went out and I didn't wanna pay them $140 since it was outside of the warranty so I opened the box (not knowing the overheating was as bad as I thought) and I bought one from wal-mart and switched the insides so mine would work...well after I did that, I'd say like 2-3 months it over-heated and thats where I am now, and Microsoft refuses to even touch it even if I pay them so my only option is to be dishonest again and buy another and switch the insides

dantesparda4169d ago

@ MoonDust
The towel trick doesnt really work, it'll fix it for a little while then break down again, at least thats what it did for me

And damn Xbox360rocks, so your drive died, and then you swap the insides out for a new one, and now that one is broken too? Damn! ridiculous!

But your right about them not touching it if you open it, cuz that's what they told me too, when i was dealing with them. BTW, im about to be on my 3rd 360. I hope this never happens to me again. My 360 has been out to repair since June 22, and has been broken since May 30th

Syko4169d ago (Edited 4169d ago )

Damn Bill Nye, there's your problem, LOL. You can't just go around guttin' your 360's. But seriously you might as well just be dishonest and do it again if you've already done what's the harm in doing it again?

I have had my 4th 360 for about 1 year and 2 months. However in the first 3 months I had 3 360's. My launch unit was busted and froze right out of the box on the 22nd of 05'. Sent it back and received one that wouldn't sync with the wireless controllers, so I sent that one back. The 3rd one didn't connect to Xbox live so I sent that one back. Needless to say I was more than a little pissed off, But at least I have never had the 3 RRoD. **Knocks on wood**

Sucks though, I think I would be like Hitler in that video when he gets banned from LIVE if I had a busted 360 and couldn't get it fixed. Hell, I might do the unthinkable and get a god damned PS3!! LOL.

But sir think of the Bowling game... [email protected]#$ the [email protected]#$ing Bowling game!!
What about my Gamerscore... =(

Even my Wife said that's what I'd sound like if I didn't have my 360. So I could imagine you are torn. MS has turned their back on you for the last time. But I know you still wanna play the 360 really bad. PS3 just dosen't fill the void, YET. But I am sure it will soon.

PS360PCROCKS4169d ago

haha yeah Dante is sucks majorly man, it was really ridiculous and yeah they told me they wont touch it since I did, but holy man since june 22nd? and you haven't been able to play since May, that really sucks, bet your going nuts...and syko yeah so like me you have gone through your fair share of crap as well...and what bad luck man, lol it never even went out they were just all faulty, that's crazy...well this time I am going to swap them I am going to mod my case with some nice big air flow holes on top so I can maximize the airflow and heat dissipation and I guess if it break again I will do it AGAIN and hopefully by than it is 65nm and their wont be problems...If it werent for the fact I owned so many games, love GOW, just got Forza and am waiting for Halo3,Bioshock, Mass effect, too human, and alan wake I would say fuc* off to Microsoft all together...oh and syke lol I got the PS3, it's nice, but I am still waiting for something to wow me...but that should be soon with lair and HS and Ratchet

+ Show (5) more repliesLast reply 4169d ago
MannyHarlem1414169d ago (Edited 4169d ago )

i'm not sure how the introduction of a 65 nanometer chipset translates to better hardware/performance. Do they run cooler or something? Exactly how big is the difference when you're talkin a just a 25 nanometer differential in removing the terrible red-ring?

I'm currently on my third 360... so far

big_tim4169d ago

Less power consumption, less heat, smaller parts create a bigger air volume inside the shell, better performance.

SKullDugger4169d ago

The 65nm chip sets run cooler because they require less power so their operation temp. is a lot cooler then the 90nm and they are also smaller again less power useage. They will use the 65nm for the GPU and the CPU's.

Syko4169d ago (Edited 4169d ago )

You do realize we are talking about NANOMETERS right?! That is super small man. But anyways all the issues seem by all indications to revolve around heat. 65nm chips are always more efficient and run cooler than their 90nm counterparts, Due to needing less power. Plus with the addition of the 2nd heatsink MS has solved the problem, But now needs to save face for people making a $400 investment.

vidoardes4169d ago

You would be surprised at how much of a differance moving to 65 nm makes. not only do they run much cooler, the are also alot cheaper to produce. Because the y run cooler, MS can get rid of the new heatsink setup and save more money, and the cost of producing the consoles dramatically reduces. coudl mean a heafty price drop, or MS might use it to offset the cost of repairing the old consoles. I do agree that it needs to be formally announced, as opposed to quietly phased in like it normally is.

Frulond4169d ago

the 65nm chip is the only thing causing the heat sinks?
If so why waiting so much and releasing it on the Falcon?
and why didn't they changed this when people sent their 360's in the first place?
My point is... I don't think this is the only reason why 360's are having heating problems, tho if it was... why did they wait so long?


The 65nm chip sets reduce costs by 50%, allow more air in console, uses less power = less heat. Also gives the space option to place the pwr supply within the console. I call BS on this article, I just went to my local Gamestop to reserve Bioshock & 2 xbox360s were purchased in the 10 minutes I was there. I go there maybe once a month & I have never seen 2 consoles go out the door in that short of time.

Just wait 'till Bioshock, Mass Effect & Halo 3 hit the market - much less a probable price cut. M$'s only problem is technical, otherwise they have the games, the online service, & the lead. Their software sales are through the roof & some of the best titles hit in the next 4 months. Every PS3 game I read about is either being pushed back, having development problems, or is coming out @ 30fps or without the same content as the 360. Alot of folks are going to get the 360 just because of Halo, wait & see, won't be long now.

devi8i4169d ago

25nm reduction is nearly a 28% reduction in core size. Quite sizeable reduction especially when speaking in terms of semiconductors. Imagine if you could reduce the size of your autos engine by 28% and still deliver the same amount of horsepower while utilizing less fuel.

SlappyMcTaint4169d ago (Edited 4169d ago )

You blind freaking xbot! This story is from a reputable news site that is doing basic math (which is obviously over your head) I can't believe you call BS on this, when M$ themselves have stated the over 1 Billion $$ cost of fixing the 'Boxes and extending the warranties.

You freaking xbots are so gullible!! ...And you keep buying more and more xboxes, even though they just keep breaking! M$ sure brainwashed you lemmings! And I dont' think the 65nm will solve the problem completely. Will switching to smaller, more efficient processors eliminate the disc scratching? LOL LOL LOL

Keep buying them suckers!! And btw, I got some killer swamp land in Antarctica I'd like to sell to you for a helluva deal!!

EDIT: Here's a doozy for you:

Xbox chief unloaded stock amid Xbox failure fiasco
by Cyril Kowaliski - 11:41 am, July 12, 2007

A few days ago, Microsoft owned up to the fact that every single one of the 11.6 million Xbox 360s it has sold suffers from a design flaw that could potentially cause a device failure—the so-called "red ring of death". As a result, the company said it would extend the Xbox 360's warranty to three years. It also predicted that repair costs would add up to somewhere between $1.05 billion and $1.15 billion.
That's not the whole story, though. According to MarketWatch, Microsoft—or at least the company's Xbox chief Robbie Bach—has been aware of the issue for quite some time. A review of filings with the Securities and Exchange Commission suggests Bach sold a whopping $6.2 million in stock between May and the date of the official announcement last week. Bach had reportedly not sold any stock in the eight months prior to that period, suggesting a connection to the Xbox 360 failures. However, a Microsoft spokesman told MarketWatch the trading was "completely unrelated" to the announcement. Microsoft had been aware of the issue for "some months," the spokesman added, but a decision regarding how to deal with it was only reached "much more recently."

+ Show (5) more repliesLast reply 4169d ago
SKullDugger4169d ago

Listen this is the amount shipped not sold and 3 BEST BUYS in my area said their 360 orders were a week late getting in and remember this is just for the PRO not the ELITE. MS and the 360 will be fine. I LOVE MINE !!!

BLACKJACK VII4168d ago (Edited 4168d ago )

Agreed - This is nothingmore than "News 4 Flamers"