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Microsoft Could Ship 3M Xbox 2 Units In Dec. Quarter

pcostabel

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Goldman Sachs said it confirmed with Microsoft (nasdaq: MSFT - news - people ) that the company is unlikely to discontinue production of the Xbox videogame console with the launch of Xbox 2. Microsoft will provide a sneak peek of the Xbox 2 console on a television special on May 12 on MTV in North America and on May 13 internationally. "We had expected Xbox 2 to shown for the first time at the E3 videogaming conference in Los Angeles (May 17-20, 2005)," Goldman said. "This appears to be a tactical effort to show Xbox 2 before Sony (nyse: SNE - news - people ) demonstrates the PS3 [PlayStation 3 videogame console] at E3." The research firm, which rates Microsoft at "outperform," expects Xbox 2 to be available for retail sale in October or November at a retail price of about $249 to $299. Goldman said the Xbox console would cater to the lower-end of the consumer segment. The firm expects Microsoft to ship about 3 million units of the Xbox 2 worldwide in the December quarter. Sony is expected to debut the PS3 at E3, "although the product is not expected to be available in the U.S. until mid-2006 (perhaps a Japan launch in the fourth quarter of 2005 although more likely in the first quarter of 2006)," Goldman said.
 
pcostabel said:
Goldman said the Xbox console would cater to the lower-end of the consumer segment.

Huh? That's a somewhat queer statement. At $299, it's certainly not going after the AV enthusiansts, but then that's true of ALL consoles since the CDi.
 
sonycowboy said:
Huh? That's a somewhat queer statement. At $299, it's certainly not going after the AV enthusiansts, but then that's true of ALL consoles since the CDi.

perhaps they mean the original xbox, in keeping with their statement that MS will not stop production.
 
If your thinking, what im thinking! a 299 price point to start off next gen is very good, it going to force sonys hand to match this price and make a very big loss leader product (probabley).
 
Worldwide?!

I really hope that is true. It has been difficult to find excitement in the XBOX2 when I know I'll be in Japan by that point (finally). I was planning on importing one from the US, but I'd much prefer an actual Japanese release. I just wasn't expecting one due to the..."popularity" of the current XBOX.
 
""This appears to be a tactical effort to show Xbox 2 before Sony (nyse: SNE - news - people ) demonstrates the PS3 [PlayStation 3 videogame console] at E3.""

This keeps coming up again and again - that MS and Sony are vying to demo their consoles first - but I just can't understand why either company would be so keen to "go first"? Honestly, I just don't see it. Anyone care to explain?

If such a little contest is ongoing, can we really expect Sony now to reveal details on PS3 before May 12? A pre-e3 japanese event, perhaps?
 
This fits with my assertion over a year ago, that Microsoft is going to try and sell as many hardware units as they possibly can before the PS3 hits. Sounds obvious, but what I mean is that it seems obvious with a simultaneous worldwide launch that's earlier than everyone else's along with all of this jockeying for the announcement, along with the tremendous amount of launch games we're hearing about, that Microsoft is making a supremely concerted effort to take advantage (or more precisely, create the advantage out of a possible disadvantage) of their lead time by doing EVERYTHING possible to have as many units as possible packed into homes before the PS3 hits.

It seems they really, really ascribe much of Sony's success this generation to the year head start it had on the Gamecube and the Xbox. Lock in consumers, media, publishers, developers,etc.
 
Seems plausible.

1.4 million in North America
1 million across Europe
.6 million in Asia

all *expected* to be sold through the holiday season and into January '06.

edit:

Goldman Sachs said it confirmed with Microsoft (nasdaq: MSFT - news - people ) that the company is unlikely to discontinue production of the Xbox videogame console with the launch of Xbox 2.

ownage.
 
Gofreak is really that hard to understand who ever goes first sets the terms for the rest. If you think M$ is gonna promote the XBOX 360 the way they did the XBOX your in for a rude awakening. Just like Sony will not promote the PS3 like they did the PS2. There are bigger stakes on the table now. The war has truly begun.
 
sonycowboy said:
This fits with my assertion over a year ago, that Microsoft is going to try and sell as many hardware units as they possibly can before the PS3 hits. Sounds obvious, but what I mean is that it seems obvious with a simultaneous worldwide launch that's earlier than everyone else's along with all of this jockeying for the announcement, along with the tremendous amount of launch games we're hearing about, that Microsoft is making a supremely concerted effort to take advantage (or more precisely, create the advantage out of a possible disadvantage) of their lead time by doing EVERYTHING possible to have as many units as possible packed into homes before the PS3 hits.

It seems they really, really ascribe much of Sony's success this generation to the year head start it had on the Gamecube and the Xbox. Lock in consumers, media, publishers, developers,etc.
Duh?
 
sonycowboy said:
It seems they really, really ascribe much of Sony's success this generation to the year head start it had on the Gamecube and the Xbox. Lock in consumers, media, publishers, developers,etc.

The headstart means nothing. It's owning the greater marketshare. The more marketshare you have, the more software sales.. the more 3rd party developers want to work with you.

It may work, or if enough people just wait for PS3 it won't really have much of an effect and MS will have lost the nice hardware advantage they had this generation.
 
It's gonna be really interesting if X360 debuts at $249 US....that's a lot of pressure to put on everyone coming afterward if it takes off well enough. $299 is probably what it'll be, though.
 
WULFER said:
Gofreak is really that hard to understand who ever goes first sets the terms for the rest. If you think M$ is gonna promote the XBOX 360 the way they did the XBOX your in for a rude awakening. Just like Sony will not promote the PS3 like they did the PS2. There are bigger stakes on the table now. The war has truly begun.

I agree with the latter part, but not your first point (that the first to go sets the terms - though MS is certainly ploughing new territory with some of their approach here, it's not necessarily going to set the trend). The stakes being higher doesn't necessitate a race to be first IMO, especially when the timescales involved are so small.

I hope there is a race - the sooner we see stuff the better :D - but I just don't understand why there would be one.
 
Cyan said:
Yep. And not without reason. If they can pull this off, they could well be a viable challenge to Sony. Unless the PS3 is a lot more powerful than I expect, I think they may succeed.

If PS3 is significantly more powerful than Xbox 360 Sony will catch MS (if not surpass) by Christmas 2006. If the Xbox name loses it's power advantage all they have left is Halo and XBL. I don't think that's enough to stop Final Fantasy, GTA, GT, better looking 3rd party ports, etc.
 
Razoric said:
If PS3 is significantly more powerful than Xbox 360 Sony will catch MS (if not surpass) by Christmas 2006. If the Xbox name loses it's power advantage all they have left is Halo and XBL. I don't think that's enough to stop Final Fantasy, GTA, GT, better looking 3rd party ports, etc.
The power wont matter much if MS has the 3rd party games. They need those games before the PS3 launches and not after tho.
 
Razoric said:
I don't think that's enough to stop Final Fantasy, GTA

Didn't someone here state that one of these two would be revealed at E3 to be on Xbox360?

I didn't find it believable, but anything can happen. I'd have told you to go **** yourself if you would have told me way back when that I'd be playing Sonic on a Nintendo console (although that happened for completely different reasons).

Either way, I think we'll need to wait until E3 to have a true idea of how Xbox360 will really do against PS3.
 
at a retail price of about $249 to $299

wow ... Microsoft really isnt messing around. A $250 move would be brilliant. Especially since Sony is gonna have to pay a crap load of cash to put that blue-ray drive in PS3. With PS3 scheduled for 2006, there is no way they can squeeze it in there at $299 without immediately killing themselves. I like their strategy if this is it. Come flying out of the gate, then if you cant beat them head to head, bleed them to death. Looks like Peter Moore is still pissed over DC ... hes got unfinished business with Sony :)
 
sonycowboy said:
This fits with my assertion over a year ago, that Microsoft is going to try and sell as many hardware units as they possibly can before the PS3 hits. Sounds obvious, but what I mean is that it seems obvious with a simultaneous worldwide launch that's earlier than everyone else's along with all of this jockeying for the announcement, along with the tremendous amount of launch games we're hearing about, that Microsoft is making a supremely concerted effort to take advantage (or more precisely, create the advantage out of a possible disadvantage) of their lead time by doing EVERYTHING possible to have as many units as possible packed into homes before the PS3 hits.

It seems they really, really ascribe much of Sony's success this generation to the year head start it had on the Gamecube and the Xbox. Lock in consumers, media, publishers, developers,etc.

PhatSaqs said:

No, it's not a duh. The way I see it, is that Microsoft aren't going to look at this as a marathon and have a 5 year plan to win. Instead they are going to go sprint out of the blocks and try to sell as many as possible in the first year through sheer brute force, none of this pstwo business where there are shortages to create later demand. That way the competition are going to have to play big time catch-up, and Microsoft will be in a position to get string exclusive software support.
 
rusty said:
Didn't someone here state that one of these two would be revealed at E3 to be on Xbox360?

I didn't find it believable, but anything can happen. I'd have told you to go **** yourself if you would have told me way back when that I'd be playing Sonic on a Nintendo console (although that happened for completely different reasons).

Either way, I think we'll need to wait until E3 to have a true idea of how Xbox360 will really do against PS3.

Well if Sony loses GTA then yeah PS3 will have a serious problem next year. But I'm pretty sure GTA is still Sony timed exclusive. I guess we'll see at E3. This forum will be awesome. :lol :lol
 
Razoric said:
Well if Sony loses GTA then yeah PS3 will have a serious problem next year. But I'm pretty sure GTA is still Sony timed exclusive. I guess we'll see at E3. This forum will be awesome. :lol :lol


Awesome as in tottaly insane, rabid like, slow loading or down completely... then yes
 
Razoric said:
If PS3 is significantly more powerful than Xbox 360 Sony will catch MS (if not surpass) by Christmas 2006. If the Xbox name loses it's power advantage all they have left is Halo and XBL. I don't think that's enough to stop Final Fantasy, GTA, GT, better looking 3rd party ports, etc.

I don't see the rationale in the bolded. The 'power advantage' hasn't helped XBOX significantly this gen, so why would it mean shit for anyone next-gen? Unless the power difference between consoles is painfully obvious from the get-go, it means nothing. With regard to franchises and the buddy-buddy relationships between many companies, I don't think that the way things are in this gen will remain so come next.
 
jadehorizon1 said:
wow ... Microsoft really isnt messing around. A $250 move would be brilliant. Especially since Sony is gonna have to pay a crap load of cash to put that blue-ray drive in PS3. With PS3 scheduled for 2006, there is no way they can squeeze it in there at $299 without immediately killing themselves. :)

I thought Sony created the Blue ray format. Should not their cost be cheaper then everyone else, especially if they are producing millions of units instead of thousands?
 
heidern said:
No, it's not a duh. The way I see it, is that Microsoft aren't going to look at this as a marathon and have a 5 year plan to win. Instead they are going to go sprint out of the blocks and try to sell as many as possible in the first year through sheer brute force, none of this pstwo business where there are shortages to create later demand. That way the competition are going to have to play big time catch-up, and Microsoft will be in a position to get string exclusive software support.
Just because they arent planning to create artificial shortages doesnt mean that they dont have a "5 year plan to win". Regardless of how they introduce the product, ultimately, all of the hardware makers, or any other entity that sells products, share the same goal. To sell the most they can.
 
I think Microsoft's Xbox 360 showing at E3 is going to blow the roof off the place. There will be some titles that won't live up to the hype, but the overall quality of the launch lineup will be stellar and possibly make many forget about current gen. However Sony will have a nice counter with its still strong PS2 lineup and a big teasers for upcoming exclusive PS3 games with some glimpses of early gameplay footage that will leave gamers' mouths watering.

Microsoft's job is to convince you to want to take the plunge into next-gen this November, while Sony's job is to convince you to wait until mid '06. That's the battle right there.
 
MightyHedgehog said:
The 'power advantage' hasn't helped XBOX significantly this gen
How do you know?

I don't think it's provable either way, unless we had a comprehensive survey on all Xbox owners asking why they bought their system/games.

Certainly it didn't hurt them, though.
 
What if M$'s hit is to costly and Sony dumps Blu-ray. Popcorn for everyone this forum would explode. No one has showed clear reasons why this tech is needed. HDTV has not taken off like everyone said it would and these drives will cost close to $300 by themselves. I'm starting to think Blu-ray won't be in PS3. IF it's there Sony's gonna bleed, bleed like no tomorrow.
 
MightyHedgehog said:
I don't see the rationale in the bolded. The 'power advantage' hasn't helped XBOX significantly this gen, so why would it mean shit for anyone next-gen?

But it has helped them. Yeah they didn't catch Sony but I remember a time when MS's Xbox was a laughing stock. Their system's power, harddrive, online plan made them a contender. People expect Xbox games to look better than Sony / Nintendo. If they lose that power advantage next gen significantly then they may have a problem. We'll just have to see how they stack up at E3 and beyond.
 
I will be picking up one of the those 3 million units... hopefully, the launch will be very impressive... BRING IT ON!
 
Razoric said:
But it has helped them. Yeah they didn't catch Sony but I remember a time when MS's Xbox was a laughing stock. Their system's power, harddrive, online plan made them a contender. People expect Xbox games to look better than Sony / Nintendo. If they lose that power advantage next gen significantly then they may have a problem. We'll just have to see how they stack up at E3 and beyond.
Casuals could not notice the difference between a first gen PS2 title and a first gen Xbox title. The difference won't be that obvious next gen (a matter of a number of polygons and shader effects on the screen, nothing more) so it's more than doubtful that anyone except the most trained eyes will be able to spot any real difference.
Next gen will be the content war, not the hardware war. I would love to know all the different offers Sony and MS will have for the big developpers, in terms of money/royalties and support.
 
A 250$ price will be great, tough I'll get one even for 300 :)
Great move by microsoft. I hope this makes sony launch in a 250-300 price point as well :D
 
There will be some developers (Polyphony, KCEJ, Namco, etc) that excel at squeezing the most out of the hardware. If anyone is going to do games that look significantly better on PS3 than X360, it'll be them.
 
flsh said:
A 250$ price will be great, tough I'll get one even for 300 :)
Great move by microsoft. I hope this makes sony launch in a 250-300 price point as well :D

That's the flip side of the coin... MS releasing at $250 will surely be a slap in the face to Sony. I wonder how much money they'd have to eat / how much they'd have to gut the PS3 to match that price.
 
Heh, I called a $250 price (for the non-HD system, of course). Hope it's true. There's really no point in doing a non-HD bundle if they aren't planning on grabbing for a little bit more thrifty demographic with it. Putting it out at $300 or more would just net the sales of the same ol' launch enthusiasts, and that lot is undoubtedly gonna go for the HD bundle anyway. This way the HD systems gets sold to the enthusiasts, and the non-HD ones have a better chance at grabbing a little more casual audience from the very beginning of the console's life.

Plus, with Sony saying they have no plans to release a non-bundled PSP, what's going to look like the better deal between the two during the holidays if they're the same price, a full-on next-gen console or a handheld?
 
rusty said:
Didn't someone here state that one of these two would be revealed at E3 to be on Xbox360?

I didn't find it believable, but anything can happen. I'd have told you to go **** yourself if you would have told me way back when that I'd be playing Sonic on a Nintendo console (although that happened for completely different reasons).

Either way, I think we'll need to wait until E3 to have a true idea of how Xbox360 will really do against PS3.

Well, obviously GTA will be on Xbox 2 too, sooner or later.
 
This keeps coming up again and again - that MS and Sony are vying to demo their consoles first - but I just can't understand why either company would be so keen to "go first"? Honestly, I just don't see it. Anyone care to explain?
Someone from EGM posted here that the actual reason Sony had their conference a day ahead of what they usually have, was because Nintendo bought their regular E3 timeslot.

It makes sense for Microsoft to go first, they can benefit from it somewhat, and Sony hardly can (the opposite may hold true for them), they had the May 12 unveiling planned a lot ahead. This was obviously not a huge secret, and if Sony really wanted to reveal stuff before them, they would not stick to 16th.

Either way, it's just a few days of difference. I think it's basically a lot of hot air being blown from media, but that's nothing new.
 
Razoric said:
That's the flip side of the coin... MS releasing at $250 will surely be a slap in the face to Sony. I wonder how much money they'd have to eat / how much they'd have to gut the PS3 to match that price.

The price issue is tricky. Sony could try playing the "premium" card with PS3, and consequently make the X360 look like a less serious option. Price can do funny things to consumer psychology. Lower pricing didn't do much for Nintendo (although there it was one factor of a few..).

Sony has experience persuading consumers to spend more for their products ;)

That said, I'm sure Sony is aiming for a sub $300 price point with PS3. PS2 was under $300 at launch, right?
 
human5892 said:
How do you know?

I don't think it's provable either way, unless we had a comprehensive survey on all Xbox owners asking why they bought their system/games.

Sure, and my statement was my opinion on the general worth of the power advantage...Personally, I don't know of anyone that buys a console just because it's more powerful than another...there has to be the games to get them over the edge.
 
Shig said:
Plus, with Sony saying they have no plans to release a non-bundled PSP, what's going to look like the better deal between the two during the holidays if they're the same price, a full-on next-gen console or a handheld?
People familiar with the pricing of various segments of consumer electronics and the value offered at various pricing levels will know that BOTH are great deals. People not so informed will continue to make estimations of worth purely based on their personal financial standing, as usual :)

And if MS chooses to bump Xbox 2 up to $300 in order to include BC, it'll still be a great deal. ;)
 
MightyHedgehog said:
Sure, and my statement was my opinion on the general worth of the power advantage...Personally, I don't know of anyone that buys a console just because it's more powerful than another...there has to be the games to get them over the edge.
Oh, I agree, although I think power (or the perception of power) can be a purchasing factor if someone is on the fence.
 
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