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.
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.
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.
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?
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?
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 anywayFirest0rm 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.
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.
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.
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.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.
There was a statistic floating around on here a few months ago that showed they had not made 1 dime off it whatsoever.Kleegamefan said:Have MS made any money on the xbox yet? (i.e. is it profitable?)
Void-filling Zelda-powered 'Cube orders have gone through the roof.alejob said:So Nintendo will get a chance to regain the No.2 spot![]()
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.
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.
Spong, tha gaming news gamblers :lolbill0527 said:DonÂ’t believe the mis-information that is filling your browser/inbox/rss feed.
Backwards campatibility isn't just about extra space in your room at home.
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.
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.
AniHawk said:Backwards campatibility isn't just about extra space in your room at home.