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Is Halo3 The Saviour For Xbox 360?

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GfK Analyst Daniel Morse claims that to date the Xbox360 has only sold 56,000 units compared to the Sony PS2 which has sold 133,000 this year. This is followed by 69,500 units for the PS3 Sony games console and 90,000 units for the Nintendo Wii. Also popular has been the Nintendo DS which to date has this year sold over 210,000 units.

However Morse admits that the jury is still out on whether Microsoft will suffer from the massive failure rate of the Xbox 360 console both here in Australia and overseas due to what is being described as the "Red Ring Of Death". "It is too early to tell whether there is any retail fallout from the issue," said Morse.

He added: "There is a problem, and the discounting of the Xbox 360 units, and the upcoming launch of Halo3 will help them". He said the launch of this new Xbox 360 game exclusive to the Microsoft platform is critical as it may sweep away the stygma associated with the Red Ring Of Death failures.

Microsoft won't discuss what went wrong with its Xbox 360 resulting in over 30 percent being returned, but to put the issue into perspective, just imagine your new TV breaking down twice in the first six months of ownership. The vacuum cleaner giving up the ghost three times. The microwave repeatedly going kaput. Then imagine replacing the item with the same model over and over while being asked by Microsoft to stay loyal to the company.

For Microsoft, the Xbox is a massive financial drain. Last month it was forced to allow over $1.3 billion for extended warranty claims, and where the Sony PS3 has a failure rate of less than 0.1 percent, the Xbox 360 is failing on average by over 25 percent.

When Microsoft entered the gaming market it had witnessed firsthand the success of the Sony PS2, as well as the success of consoles from the likes of Nintendo and Sega, and it greedily wanted a share of the action. Now three years on, Microsoft is bleeding gaming losses which are estimated at over $18 billion dollars.

This week and only a few days after Microsoft cut the price of the Xbox 360 gaming console by 15 percent in the USA, the premium device was languishing at #21 in the Amazon.com sales charts. Competitors such as the Sony PS3 came in at 6th and the Nintendo Wii took up the third slot.

With many telling SmartHouse that it was not the failure of the unit that upset them most but the reaction of Microsoft when they complained about the problem. To date we have had over 200 emails from Microsoft customers affected by the Xbox 360 failure.

Stephano Nevarez has had to repair his Xbox 360 three times. Since he first bought his $400 Microsoft Xbox 360 in 2006, it has failed three times. Each time, he sent the game machine back to the company and waited weeks for a repair or a replacement.

"There's nothing in the house that breaks down as much," said Stephano, a 15-year-old high school student.
Yet he remains a devotee of his 360 console, the more so because he wants to play Halo 3, the latest iteration of a violent space epic due in stores on Sept. 25; it is available only for that game machine.

The game, published by Microsoft, could redeem the company going into the Xmas selling season. Untold numbers of 360 owners have watched their machines break down, and then, in many cases, watched the replacement consoles do the exact same thing because of a severe and widespread manufacturing flaw.

But if the Xbox players keep coming back because of Halo 3, and if other gamers buy the console just for the game, then Microsoft could markedly improve its standing in its battle against rivals Sony and Nintendo.

"Halo 3 is Microsoft's most important game," said Dan Hsu, editor in chief of Electronic Gaming Monthly, a magazine for enthusiasts. Mr. Hsu, who has seen the game, said it delivers in spades, with one caveat: "Assuming your machine does work, it does what it sets out to do."

The bar is high. Combined, Halo and Halo 2 have sold around 15 million units, making the series one of the most successful game franchises of all time. The game has spawned novels, comic books and a possible movie.

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MaximusPrime3689d ago

savior for xbox 360 for just mere 3 months.

Crazyglues3689d ago

Which just happen to be the most important 3 months of gaming for the entire year. If your picking the best time to release the biggest game on your system...

This would be what is known as "Perfect Timing" -Long Live the King.

Bill Gates3689d ago (Edited 3688d ago )

At this point NOTHING can save the 360.

It's fate has for ever been sealed in the Red Ring Of DEATH....AAAAHHAHAHAHHAHA

For every “new” fan of the Halo series, there are people like me who enjoyed the first iteration of the series, but not so much the second, and could now give a rat’s ass about the third. Add that to the straight out of the gate RROD, and you’ve got a consumer who could care less that the 360 even exists.

I think this section of the article says it all, and it also tell you who the 90% of the Halo fans out there are. Halo is intended specifically for kids this age…

“”There’s nothing in the house that breaks down as much,” said Stephano, a 15-year-old high school student.”

Have fun playing with this kiddy junk for 2 months kids, and let the real gamers play with the likes of KZ2, MGS4, UT3, and many more.

Don’t forget to drink my Oil XBOTS…..AAHHAHAHAHA

Meus Renaissance3689d ago

Mr Gates, take part in a debate - not a ranting contest please.

TriggerHappy3689d ago

Mr Gates, wont be able to do that because he only have one bubble.

Meus Renaissance3689d ago

It's still somewhat uneasy but the 360, like its predecessor, is still known as the "Halo machine". I was reading another article yesterday that suggested - because of the same sales trend with the 360 as with the original Xbox - that after Halo 3 is released, the sales rate will slow down because the majority of interest relating to it as actually due to that game.

With 2008's list of software titles to be over taken by Sony's lineup, nevermind the long-term future of the machine - but what about Microsoft's next console? If not Halo - what will its flagship title be - its biggest selling point?

Odion3689d ago

actually its selling better then the first Xbox (by a bit) at double the price, which means that they are getting new customers. Not to mention Halo has a buddy now in Gears of War.

Which is looking like its going to be as big as Halo. Not to mention that ya if MS did advertise that its really not a shooter anymore it couldn't hurt.

Meus Renaissance3689d ago

Yes and the PS3 is selling about the same amount as the PS2 did during the same lifespan, but at twice the cost of $600.

Price isn't a factor in comparing next-gen with last-gen consoles in terms of sales. People are getting richer, and items are getting more expensive as the technology advances.

Gears of War is certainly a new franchise, but do you think it could carry the flag after Halo? I just don't think so. And I'm quite pessimistic because MS hasn't shown any 1st party pieces of great gaming that could sell as well as Halo; so their ability to recreate Halo's success is definitely under the scope.

Odion3688d ago

well so far Gears has sold more then Halo 1 did so that can only say good things.

Also just for arguments sake, the same thing could be said to the PS3, the one game that Sony has made that has sold such massive numbers is GT. They've never replicated it, and their 2 biggest franshises are third party games.

TriggerHappy3689d ago

Thats also, the most important, period in the gaming industry. If a company had made losses during the year, that "3" months is the perfect time for them to make all that extra cash. I think Halo can save the 360 and much more. Microsoft might actually make profit this year thanks to Halo 3.

Excalibur3689d ago

The Xbox 360 needs "saving", It's doing just fine without Halo 3

AngryHippo3688d ago

the 360 is doing fine, if they keep releasing great titles such as bioshock, Halo 3, Too Human, Mass Effect etc, i don't think the xbox 360 is going to be going anywhere, here to stay.

beavis4play3688d ago

since getting into gaming. ms has LOST 18 billion dollars. you don't think they need some kind of a boost?

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