Neoseeker : News : Xbox 360 global install base hits nearly 34 million units

Xbox 360 global install base hits nearly 34 million units
Leo Chan - Friday, October 23rd, 2009 | 10:51AM (PT) 0 Like Favourites (0)


Quarterly profit at Xbox 360 division rises 96 percent despite flat sales

Microsoft as a whole was stung with an 14 percent year-on-year decline in profit for its most recent fiscal quarter ending September 30th.  A 39 percent drop in revenue from sales of Windows and Windows Live products didn't help, and this was attributed the sheer amount of revenue invested in the software giant's Windows 7 pre-order programs.  The overall profit decline was still smaller than what analysts had previously projected. Another bright spot proved to be Microsoft's Entertainment and Devices division, home of the Zune and Xbox 360 businesses, boosted by demand for the Xbox 360.

The E&D's revenue only slightly increased to $1.89 billion USD, but this still led to $312 million USD in quarterly profit.  This is nearly double the $159 million USD profit earned during the same three-month period back in 2008.  Xbox 360 hardware shipments also fell slightly to 2.1 millino units for the quarter. Profitability was achieved in light of fairly flat sales through decreased Xbox 360 platform costs, further illustrating the benefits of continually maintaining console production processes. Microsoft also achieved mastery in September by making up nearly 32 percent of the gaming industry's overall revenue through hardware and software sales, as tracked by the NPD Group.

Microsoft's general manager of investor relations, Bill Koefoed, underlined confidence in the company's Xbox 360 business and confirmed in this morning's earnings call that the platform now benefits from an 8.7 software attach ratio.  This means an average of 8.7 Xbox 360 games are sold for each console. Furthermore, the Xbox 360's global install base has now hit over 34 million units, an increase of 3 million units over just this past two months.  Xbox Live revenues also increased 50 percent.

  • -2 thumbs!
    BS | Oct 23, 09
    It's 34 million shipped not installed. Your headline is very misleading.
  • 2 thumbs!
    RabidChinaGirl since Oct 2007 | Oct 23, 09
    quote BS
    It's 34 million shipped not installed. Your headline is very misleading.
    Hm, I found it pretty self-explanatory by reading the article.
  • 1 thumbs!
    VeGiTAX2 since Apr 2001 | Oct 23, 09
    quote BS
    It's 34 million shipped not installed. Your headline is very misleading.
    The entire internet is very misleading as everyone is reporting the same thing. The 34 million units are sold to retail. MS gets their money on the spot, it's not like units sold at retail trickle back to MS and they're sitting waiting for the cows to come home.
  • 0 thumbs!
    lans | Oct 23, 09
    Cows wth dude
    Shipped is not the same as sold and people are more interested in the sold part if that stock does not sell which is on the shelves no more stock will be bought
  • 2 thumbs!
    Bill Gates03 since Dec 2004 | Oct 23, 09
    Yes, but Walmart will only order new 360s to place on the shelves, if the ones on the shelves are selling...
  • 0 thumbs!
    THM since Jan 2008 | Oct 23, 09
    quote lans
    Cows wth dude
    Shipped is not the same as sold and people are more interested in the sold part if that stock does not sell which is on the shelves no more stock will be bought
    I agree with you...

    Total number of consoles which have been shipped towards retailers is not the same as actual total sales number of consoles which have been purchased by consumers ....

    Nonetheless, console companies (Sony, Microsoft, Nintendo) do take pride of how many units have shipped or installed thus far to retailers regardless of bona fide total sales towards consumers...
  • 3 thumbs!
    VeGiTAX2 since Apr 2001 | Oct 23, 09
    @THM point proven, when MS / Sony / Nintendo report to their investors they report the sales. Selling stock to retailers (not consignment like walmart) is making sales. It doesn't matter if none of them make it to consumers as they got the payback already.

    Investor reports aren't about console races or fanboy debate, they're present to tell their people "Yes we made this many and we sold them to retail channels turning x amount around"

    Shipped = Sold, go ask a Target / Bestbuy / Meyers if they bought their inventory or if MS dropped it off with a tin can asking for them to put their share of the money in it. We're not talking about anything complex here.

    Kinda funny that the whole argument is "well they sold them they just didn't sell them."
    Last edited by VeGiTAX2 :: Oct 23, 09
  • 0 thumbs!
    aldo | Oct 24, 09
    Um... Where did you get Microsoft reported a decline of 18%, it was only 14%.

    http://www.microsoft.com/presspass/press/2009/oct09/10-23fy10Q1earnings.mspx?rss_fdn=Press%20Releases
  • 0 thumbs!
    RabidChinaGirl since Oct 2007 | Oct 24, 09
    quote aldo
    Um... Where did you get Microsoft reported a decline of 18%, it was only 14%.
    He probably misread (mistyped?). The 18 percent decline applies to net revenue, not year-on-year.
  • -3 thumbs!
    Thuglife | Oct 24, 09
    Im feeling abit scared for sony. I hope this article is fake

    RED RING OF DEATH
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