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Microsoft: Xbox Made More Money Than Sony And Nintendo

Speaking to investors, Microsoft's president of the Entertainment and Devices division, did his utmost to step through the minefield that has been repair costs for the Xbox 360 and the division's lack of profitability. In doing so, Bach makes claim to Xbox 360 making more money than it's competitors.

"If you think about consumer spending on the platform, compare since the launch of the Wii and the PlayStation 3 to date, so a little over, what, seven or eight months, people have spent $2.6 billion in the U.S. on Xbox 360 all up during that period. That's almost double what they spent on either the Wii or PlayStation 3."

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Xeoset3462d ago

Well, this is going to turn into a $417fest. But the fact is, you can't argue facts, the Xbox 360's attach rate is 6.1, a world record.

Great Job Microsoft.

DJ3462d ago

a high attach rate typically means that sales of hardware/software are stagnating since there aren't enough new adopters to offset that number back to 0. The Wii has a smaller attach rate than the 360, mainly because it's selling exponentially faster. Even the PS2 has a fairly low attach rate since so many new people are buying the system each month; for about a year it was outselling the 360 in both software and hardware sales, yet still had a smaller attach rate.

Goes to show that corporate rhetoric should never be accepted at face value. Microsoft is using ignorance to paint their dwindling sales in a positive light.

Master of Menace3462d ago (Edited 3462d ago )

And once you buy the fans to keep it cool, the HD-DVD hard drive, the battery packs, and the face plates to make it look even remotely cool, you get a really high attach rate for accessories. Hey, you nearly have a working console like a PS3!

devi8i3462d ago

DJ - normally I would completely agree with you; however, as the popularity of used game purchases increases, as is evident by the substantial growth of Gamestops, and the increase of used games as product share in such retailers as Circuit City and other big-box stores. Used games do not count in the attach rate figure. Also, with the popularity of rental services I believe a large number of consumers are moving to the model of try before you buy, and then buy used. Rentals, downloadable games, and used games are diluting the waters of attach rates and changing the gamer paradigm in such a way as to almost nullify the usefulness of an attach rate number. Furthermore; there are three major distinctions between the 3 nextgen products. The 360 is a known commodity with a loyal fanbase and a mature catalog of games. You know what you are getting. The PS3 lacks a substantial catalog of games, which is reflective of its current sales, and thus makes it very hard to have a high attach rate. The Wii has a nice library, yet the spotty quality of some of its games and the very niche marketability of some of its titles is creating a very small attach rate. Most non-hardcore-gamers whom purchase the Wii do so for one or two particular games that they have either seen on tv or played at a friend's house. The different games are becoming system sellers to lots of small demographics of consumers. The be-anything nature of the Wii is driving sales not through the hardware but through the software.

All of this combined makes comparing attach rates as a meaningful indicator across the separate brands nearly moot.

Thugbot1873462d ago

Last generation we didn’t see high attach rates from the PS2 base for several reasons.
The first being that piracy and mod chips were all over and there wasn’t anything Sony could do to prevent this. It got to the point where there was no need to buy a PS2 game because you can get it Bootlegged for 3 bucks. This time round Microsoft has been able to keep piracy down significantly, which is also a reason for the higher attach rates. So looking at that you can see old attach rate numbers don’t matter because times have changed. The next thing is that some percentage not factored in the total amount of PS2’s sold were people replacing their broken PS2’s. As you can see Microsoft while I’m sure the defect rate of the 360 is much higher than that of the PS2 has not been able to get away with this; note the 3 year warranty.

Microsoft sales can’t be too stagnating because they have been outselling the PS3 on a weekly basis up until the price drop by the PS3. So for your theory to hold true that would mean the PS3 would be abysmally stagnating so their attach rate should be extremely high; and it’s not so I’m going to have to dismiss your claims.

Funky Town_TX3462d ago

You are paraphrasing a post from last year about high attach rates. You can spin it all you want. I rather have a high attach rate and several games that hit the 1 million mark than a low one. Money is made on software and accessories. Just say you hate Xbox and M$ so any news about them is bad news in your eyes.

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cdzie13462d ago

The simple fact is Xbox is #1 right now when you combine system and game sales.

Coming soon: $50 price cut, Bioshock, 60FPS Madden 08, Halo 3, GTA4 - It's only going to get bigger...

BubblesDAVERAGE3462d ago

You guys really cant be this delusional....lol..they havent even sold 3 million since december..of last year i dont know why you guys think MS is so great ...personally i think it was just the first one out the gate and people just bought it to bide the time because ever since the other system cam out there sales have been very slow...maybe after the holiday season we will see

Double-Edged3462d ago

because of you.
I'm broke.
I've missed hours of sleep.
I've missed meals.
I've gained 10 pounds sitting and playing.
I've started to be an achievment whore
I've cut-back on friday nights (sometimes)
oh yes.... I'm broke..

because of all your games and the rest of 2007.
I wont be able to buy a PS3 till......... 2009.

devi8i3462d ago

can someone disagree with the comment by Double-edge? Do you know something about his finances that he doesn't?????

Azures3462d ago

@2

I think between all that plus 360s manufacturing problems, holiday season, TONS of AAA titles releasing on PS3 and Wii in the next couple months...

it might actually be in trouble for future sales.

You said it yourself, the only game on there with exclusivity worth buying (to some people) is Halo 3. GTA4 and Madden are multi and many PCs can play Bioshock no problem. Halo is the only console mover they've got this holiday, Mass Effect and Bioshock while good are not gonna specifically sell consoles.

GMR_PR3462d ago

that you like better PS3 over Xbox 360 and you have a biased opinion?

And i think Mass Effect and Bioshock will move consoles and don't forget the monster that is H3.

The same goes for Lair, Havenly Sword and Uncharted...

I would say that both consoles will have a solid holiday season. What's going to be the difference is the price cut on both of the consoles.

PS. sorry for my english

Azures3462d ago

The issue I was trying to explain is that Bioshock and Mass Effect will be availiable on PC also. Many people won't want to buy a $400 system when they can just play those games on something they could already own.

Uncharted, Rachet, Lair, and HS are all exclusive.

dale13462d ago

worldwide sales is what you want not back yard figures then your talking see what happens in a year from now, theres competion

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