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Microsoft to stop XBox production?

It wouldn't surprise me in the least. If they're still losing money on it and they're supposedly moving towards a "profitable" console next-gen with an external add on HDD.

Why would they keep selling the xbox with HDD included if the xbox 2 has no HDD?
 
"There are only two million units left and no more will be produced," continued our source. "There are 400,000 allocated for the whole of the European territory. After that there will be no more. It was confirmed that Microsoft has no plans to manufacture the original XBox once the new console hits the market."
 
I don't know if that is true, but there does seems to be a scarcity of Xbox consoles. Everytime I go to EB or Circuit City, it seems they are always running a backlog.

I personally don't buy it unless MS plans to introduce BC with Xbox2. Consoles usually keep selling even after a new one is introduced and I doubt that would be any different with the Xbox.
 
bye bye, Xbox


Xbox pull confirmed at retail and by publishers
Leaked info points towards complete withdrawal
30th Mar 2005

Link to This Article http://news.spong.com/x?art=8507

SPOnG has received emails that indicate a complete withdrawal of Xbox hardware in the coming months, with claims surfacing today of a total end to generation one Xbox production.

According to senior sources within publishing, retailers are being instructed not to list Xbox hardware in their next catalogue publications. “They are telling us that they have reached their targets and want to clear the way for the next machine,” we were told, with our source speaking under terms of anonymity. “It’s reached the point where the amount of money they lose per unit, combined with the fact that they might well eat into their own [Xbox 360] market share, means that continuing the run is just not feasible.”

Of course the big question remains of exactly how many Xbox hardware units are still available. “There are only two million units left and no more will be produced,” continued our source. “There are 400,000 allocated for the whole of the European territory. After that there will be no more. It was confirmed to me that Microsoft has no plans to manufacture the original Xbox once the new console hits the market.”

However, Microsoft has indicated to key retailers that it plans to having around a million Xbox 360 hardware units available in time for Christmas of 2005, as reported by MCV last week and recently confirmed to SPOnG.

MicrosoftÂ’s official line on the matter is that the Xbox supply situation will improve, offering a six week wait-and-see window to retailers. Some cynics may argue that six weeks brings the welcome distraction of a 360-powered E3 show in Los Angeles. The Windows giant also claimed that manufacture of the original Xbox unit continues, although this end-of-cycle production run is likely to comprise the two million figure offered by our source today.

We will bring you updates on this story if anything changes.
 
bionic77 said:
I don't know if that is true, but there does seems to be a scarcity of Xbox consoles. Everytime I go to EB or Circuit City, it seems they are always running a backlog.

I personally don't buy it unless MS plans to introduce BC with Xbox2. Consoles usually keep selling even after a new one is introduced and I doubt that would be any different with the Xbox.


ehh, much like Sega with the DC, MS never broke even on the hardware. MS will sell the units they have left, but won't produce more.
 
inevitable.

it would be better for M$ if they ran dry & sold out so that no "clearout xbox 1" systems are on shelves this holiday.
 
chinch said:
it would be better for M$ if they ran dry & sold out so that no "clearout xbox 1" systems are on shelves this holiday.

And I was hoping to pick one of these "clearout xbox systems" up...
 
This has already happened for the most part. Many outlets have not had system to sell, and with the amount of systems remains it seems logical.
 
This is a twisted article. I'm sure MS *will* be ramping down production of Xbox in favor of Xenon, but that was to be expected considering that the former is on its way out and the latter is on its way in (in a BIG way). I don't think Microsoft will just stop production cold because that would show the gaming world (publishers, developers, retailers and gamers themselves) that MS is not trustworthy and that they might not be in it for the long haul with Xenon either, which is *not* the image Microsoft wants to portray.

Xboxes might be slightly scarce towards the end of the year, but they'll still be available new and used packaging.
 
This whole earlier launch thing for Xbox 360 could actually lead to terrible consequences, Xbox is really just now reached its peak and they plan to introduce the next one this coming winter? How many people bought an Xbox last winter? Wasn't it the strongest season for Xbox? I don't think the people that bought an Xbox in the past year, or even two years are really going to come out and buy the new one especially with no BC. IMO, I see a very small advantage for XBox 360 to release this early.
 
Firest0rm said:
This whole earlier launch thing for Xbox 360 could actually lead to terrible consequences, Xbox is really just now reached its peak and they plan to introduce the next one this coming winter? How many people bought an Xbox last winter? Wasn't it the strongest season for Xbox? I don't think the people that bought an Xbox in the past year, or even two years are really going to come out and buy the new one especially with no BC. IMO, I see a very small advantage for XBox 360 to release this early.

That doesn't make any sense. People who just bought an Xbox within the last two years are very unlikely to buy a $300+ Xenon/360 (or any console) at launch, anyway. Where are the "terrible consequences" you speak of?
 
Could be true. I mean with Peter Moore now at MS, there could be a serious case of deja vu.

Remember at Sega, he did stop production of Saturn (pissing off all the Segaphiles) in their desperate move to beat Sony's PS2 to market with Dreamcast.
 
VALIS said:
That doesn't make any sense. People who just bought an Xbox within the last two years are very unlikely to buy a $300+ Xenon/360 (or any console) at launch, anyway. Where are the "terrible consequences" you speak of?

Exactly!
 
VALIS said:
That doesn't make any sense. People who just bought an Xbox within the last two years are very unlikely to buy a $300+ Xenon/360 (or any console) at launch, anyway. Where are the "terrible consequences" you speak of?


The "terrible consequence" is that the people who bought the Xbox in the last year or so, the very same people who don't buy systems at $300, are going to be super-pissed when the supply of new Xbox games dry up at the end of the year.
 
Firest0rm said:
This whole earlier launch thing for Xbox 360 could actually lead to terrible consequences, Xbox is really just now reached its peak and they plan to introduce the next one this coming winter? How many people bought an Xbox last winter? Wasn't it the strongest season for Xbox? I don't think the people that bought an Xbox in the past year, or even two years are really going to come out and buy the new one especially with no BC. IMO, I see a very small advantage for XBox 360 to release this early.
Console launches are for the early adopters, I don't imagine that people who bought a PS1 or N64 in 98 or 99 were terribly disapointed when new hardware came out because they won't buy a new console for a few years anyway
 
Xbox2 later this year, Xbox hardware sold at a huge loss. Why not stop making them? Microsoft has nothing to lose. It might even create a large demand for the Xbox Next/Xenon/360. Hopefully the new system plays the old games. I've got my fingers crossed.
 
Looks like its more spong bs, http://www.majornelson.com ]major nelson[/URL] just posted this:



There are a few stories floating around this vast thing we call the Internet today that say the Xbox has been pulled from retailers. Furthermore, people are saying that we have “reached our targets and want to get ready for the next console.” Let me be perfectly clear: We are NOT pulling the Xbox from stores. Xbox consoles being in short supply since they are popular and stopping production are two VERY different issues. Don’t believe the mis-information that is filling your browser/inbox/rss feed.

Now, back to your regularly scheduled rumor-mongering.
 
The End said:
The "terrible consequence" is that the people who bought the Xbox in the last year or so, the very same people who don't buy systems at $300, are going to be super-pissed when the supply of new Xbox games dry up at the end of the year.

no they won't because they're the same people who buy about 10 different titles total and usually all budget-priced games.
 
GFord said:
Could be true. I mean with Peter Moore now at MS, there could be a serious case of deja vu.

Remember at Sega, he did stop production of Saturn (pissing off all the Segaphiles) in their desperate move to beat Sony's PS2 to market with Dreamcast.

Nah that was Bernie Stolar, who last I saw was at Majesco now..

-Exis
 
Taking this at face value for an instant...

However, Microsoft has indicated to key retailers that it plans to having around a million Xbox 360 hardware units available in time for Christmas of 2005, as reported by MCV last week and recently confirmed to SPOnG.
That wouldn't make good sense. Hell, Xbox seemed to be quite rushed through 2001, and they still sold more than 1.4 million in November+December. Since then the November+December period has given them 1.5 million, 1.6 million, and 1.8 million respectively. To have so few of the successor machine even with so much more time to have it ready would be a Bad Thing as far as getting that head start.
 
Kleegamefan said:
Have MS made any money on the xbox yet? (i.e. is it profitable?)
There was a statistic floating around on here a few months ago that showed they had not made 1 dime off it whatsoever.
 
alejob said:
So Nintendo will get a chance to regain the No.2 spot :D
Void-filling Zelda-powered 'Cube orders have gone through the roof.
 
You have to be able to read through the corporate spin provided by Major Nelson

There are a few stories floating around this vast thing we call the Internet today that say the Xbox has been pulled from retailers. Furthermore, people are saying that we have “reached our targets and want to get ready for the next console.” Let me be perfectly clear: We are NOT pulling the Xbox from stores. Xbox consoles being in short supply since they are popular and stopping production are two VERY different issues. Don’t believe the mis-information that is filling your browser/inbox/rss feed.

If you read carefully, he said that they are NOT pulling Xbox from stores. He sidestepped commenting about slowing down or stopping production altogether.

I wouldn't be surprised at all if production slowed to a crawl or even stopped altogether. I believe that Microsoft is still losing money on each Xbox sold and they want to run away from that machine as fast as possible. They've already forecasted that their H&E division will be right back to its money losing ways this year right after they had that incredible quarter last year on the back of Halo 2 sales.
 
I forsee this being a major problem for MS
I don't think sony is really all that worried if they are going to try this tactic. It would also explain why sony has been trying to get so many damn exclusives lately
Soul Caliber 3, Phantasy Star Universe, Grandia 3 for starters
 
Seal your Xbox now! Sell it when all the people without want it. :lol


That aside, I'm pretty sure that at launch each next gen console will sell out, if they have old systems on the shelf or not, powered by their own fan base.. be they clad in green and a slightly pointed cap, MJOLNIR armor or... well.. some kind of Sony shirt.

Out of the three Xbox has always been the rarest appearance in the game case in my electronics department. So the disappearance of it won't be that new to me.. I guess it just sucks for those who've waited this long.. thank goodness there'll be plenty of GameCubes for me to choose from in the dark of night late this year. So as noone will know. :D
 
If Xbox2 has BC, it wouldn't be so much of a problem...it would encourage people who were thinking of getting an Xbox eventually to get the new machine.

But if it doesn't have BC, this could end up very badly.

OTOH this could just be either bullshit (spong) or just marketing.
 
I really don't understand how things could end up 'badly' if X2 doesn't have BC. I mean, is it really so difficult to have another system hooked up for most people? Unless you live in a cardboard box, in which case you probably shouldn't be thinking about video games as a priority anyway, the space used is nominal. Worst case scenario would have you putting the X1 aside somewhere.

Backward compatibility means little if you're supposed to be buying a console for new games that it enables you to play on it, IMO. It's nice to have though, I suppose.
 
MightyHedgehog said:
I really don't understand how things could end up 'badly' if X2 doesn't have BC. I mean, is it really so difficult to have another system hooked up for most people? Unless you live in a cardboard box, in which case you probably shouldn't be thinking about video games as a priority anyway, the space used is nominal. Worst case scenario would have you putting the X1 aside somewhere.

Backward compatibility means little if you're supposed to be buying a console for new games that it enables you to play on it, IMO. It's nice to have though, I suppose.

Backwards campatibility isn't just about extra space in your room at home.
 
bill0527 said:
I wouldn't be surprised at all if production slowed to a crawl or even stopped altogether. I believe that Microsoft is still losing money on each Xbox sold and they want to run away from that machine as fast as possible. They've already forecasted that their H&E division will be right back to its money losing ways this year right after they had that incredible quarter last year on the back of Halo 2 sales.

Well their hardware sales numbers have been growing year over year, so they're certainly not decreasing production. I'm sure they're not increasing the production as much as they can, but they're producing a decent number it seems and selling them out as soon as it's produced. They're just not producing the insane numbers sony is for it's new PS2.
 
Backwards campatibility isn't just about extra space in your room at home.

I agree...

Here is a great post monkey magic made in another one of these Xenon BC threads (yeah, its such a non-issue, people keep making threads about it over and over again)

monkeymagic said:
- BC is important to consumers who already have a large collection of games
- BC is important to parents/children/price conscious consumers who are satisfied with budget titles
- BC is important to developers knowing they can reuse old engines for future games
- BC is important to publishers who can keep on rereleasing older games as budget titles
- BC is important to publishers who want to cater for budget, mid and high price range consumers
- BC is important to retailers who have old stock to shift and shelf space dedicated to older games
- BC is important to retailers who want to cater for budget, mid and high price range consumers
- BC is important for the media because it means your console is launching with a back catalogue of hundreds (GCN) to thousands (PS3) of games and variety = sales.

I'm not interested in BC personally (although it means not having so many consoles hooked up at one time) but all those important participants of the videogame industry are.
 
MS have the opportunity to really fuck themselves up next gen. Potentially weaker hardware, fuckign over their existing userbase, removing any competition to PSTwo. All in the name of getting out there first and cutting current losses. Hmm.

This Christmas, if there is no Xbox 1, there will be only 2 value priced consoles on the market, only 1 of which (sorry Nintendo) will sell - that will be PSTwo, and Sony can easily mop up a couple more million consumers. And those consumers will be ready to purchase a new machine in 2-3 years, by when both PS3 and Xbox 360 will be reasonably priced. Sony wins.

And if Xbox 1 software dries up, MS piss off the people that bought a cheap Xbox last Christmas. So when they come around to buying a new console, they are more likely to jump to Sony
 
GFord said:
Could be true. I mean with Peter Moore now at MS, there could be a serious case of deja vu.

Remember at Sega, he did stop production of Saturn (pissing off all the Segaphiles) in their desperate move to beat Sony's PS2 to market with Dreamcast.


You're thinking of Bernie Stolar. Peter Mooe didn't join Sega until a couple months before the DC launch in the US (though either way pulling the plug on the Saturn was overblown - the writing was on the wall, Stolar just took flack for reading it.)
 
AniHawk said:
Backwards campatibility isn't just about extra space in your room at home.

Well, yeah. I suppose it's because I've never seen the backward compatibility as a remotely important feature of a system because I hold on to old systems and am too busy playing new games on the new system. The feature in the GB line of hardware made sense to me because, let's face it...it's was pretty much the only game in town. For the PS2, it seemed cool, but really only served to help gloss over the lack of new, PS2-specific software available for the system in the early going.

Perhaps later, there might be a separately-offered dongle for BC to X1 for those that care. Like I said, it'd be nice to have, but nothing important...at least to me.
 
MS is crazy. It will either pay off big time, or ruin them. Normally a system has legs long after its successor is released. The NES and PS1 being big examples. Budget titles and greatest hits become reliable souces of income while the company transitions to new hardware. Here MS basically just wants to pull Xbox off the shelf and replace it with Xbox 2 and pretend nothing happened. Theoretically insantly switching to the next gen in one step...in theory.
 
NB: This is information I got from a contact at MS' marketing, take it as you will
Xbox production has not stopped, or even slowed. The main problem is that MS did not want to open a new production line at the end of 2004 because of the very high (and rather unexpected) demand on Xbox for the christmas season.
So instead of getting more Xbox on the market, MS just redirected lots of the systems planned for Europe to the US in an attempt to get enough systems on the market. It definitely was not enough for the US, and just starved the European (especially UK) markets too.
So now a few months later MS is still producing Xbox at the same rate, but it's still not enough for all retailers to get a big enough stock back.
So it's not about wanting to kill the current Xbox before it's time, it's a problem of not wanting to invest anything more in it. Opening a new production line when you have a new system coming a few months later is a very expansive operation and MS certainly does not want to lose anymore money than they must on the Xbox.
I can't say I agree with MS' choice on this...
 
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