Xbox News from Around The Web RRS feed

  • Question

  • Sales for Xbox 360 have fallen flat in Japan where demand for all current consoles and handhelds outperform the machine. Media Create have reported that the Xbox 360 sold 2,307 units between Apr. 16 and Apr. 22. The figure represents a further decrease from 2,900 units sold the week prior.

    In addition, the console was unable to rank any software titles in the top 50 game sales for the period. The good old Wii console and DS handheld led the overall hardware charts in the No. 1 and No. 2 position respectively, followed by sales for Playstation consoles and PSP handheld. Xbox 360 has fared better in the U.S, ranking No. 2 in console hardware sales for Mar. It has sold 5.3 million in the U.S. to date.

    Microsoft Records Record Profits Despite Slow Xbox 360 Sales
    The strong performance from Microsoft in Q3 can be attributed to the launch of Windows Vista and Office 2007. The two products were heavily promoted and launched on January 30.

    But while Microsoft did well overall, the Entertainment and Devices Division (EDD) saw its revenue fall during the quarter. The EDD’s operating loss dropped from $402 million USD to $315 million USD. Revenues, however, also dropped 21 percent during the quarter to $929 million USD.

    Poor sales of the Xbox 360 were blamed for the lower performance. "EDD revenue decreased during the three months ended March 31, 2007 primarily because of decreased Xbox 360 console sales," Microsoft reported in its 10-Q filing. "During the quarter, we shipped 0.5 million Xbox 360 consoles as compared to 1.7 million consoles in the third quarter of fiscal year 2006, which was the first full quarter of Xbox 360 console sales. Xbox and PC game revenue decreased $393 million or 44% during the three months ended March 31, 2007 due to the decrease in console sales." Microsoft has shipped over 11 million Xbox 360s since its November 2005 launch.

    The Xbox 360, however, wasn't the only culprit during Q3. Microsoft cited expenses related to its Zune launch as adding to the operating loss. Microsoft's Zune -- its first home-brewed competitor for the iPod -- was launched in November and is expected to pass the one million shipped mark in June. The company also attributed some of the blame to "increased Xbox 360 console warranty expenses." The company boosted the console's warranty to one-year in December 2006 and just recently announced a more flexible warranty program for owners.

    Microsoft forecasts that EDD revenue for fiscal 2007 will be up year-to-year thanks to increased Xbox 360 shipments and increased Zune sales. The company’s rumored flash-based Zune could be instrumental in such gains.

    Saints Row and Lego StarWars II Go Platinum
    Microsoft sent out it's May e-mail newsletter today which revealed two more Xbox 360 titles will be joining the Xbox 360's Platinum Hits line. Saints Row and Lego Star Wars II will be available for $29.99.
    SourceAll over the web

    Saturday, April 28, 2007 1:22 PM