Microsoft sees 28 percent holiday drop in Xbox 360 sales

Microsoft suffers an 11 percent drop year-on-year across its Entertainment and Devices division.

by

Falling Xbox 360 sales have contributed to Microsoft's Entertainment and Devices division seeing an 11 percent year-on-year drop of $3.77 billion in revenue during the last quarter of 2012, with much of the games industry eagerly anticipating the next Xbox.

People have been buying fewer Xbox 360s.

Announced during Microsoft's latest earnings call, the Xbox division specifically saw a 28 percent drop in sales from the same three-month period last year, shipping 5.9 million Xbox 360 units compared to 8.2 million from the year before.

The report isn't all doom and gloom: Microsoft says Xbox 360 is still North America's most popular console.

The Entertainment and Devices division also launched Windows Phone 8 during the same quarter, and Microsoft has said spreading its games across multiple connected devices will be crucial to its future plans.

Earlier this week a report claimed to know the specs inside the Xbox 720. For more news on Microsoft's plans to go next-gen, check out GameSpot's ongoing coverage.

Discussion

223 comments
Triton
Triton

Wait till they see this years numbers... Folks are going to start holding off for the real next gen.


steelmouth
steelmouth

5.9 mil console i would say thats not too shabby

GH05T-666
GH05T-666

im sure most people already own one of these now and the new xbox is coming out soon so why would people want an xbox? most people have finally brought a ps3 as well recently so they own both

S_Pac_316
S_Pac_316

Well yeah, everyone that wanted a 360 already has one by now!

chrispicard
chrispicard

I'm 28, it's been a great run for gaming since i began playing at the age of 4, i'm glad to have been alive at this time in history, it's been fun!.. but my question to anyone who is interested: Can gaming as we know it, big budget, blockbuster technology always getting bigger and better game on game, can it actually continue in the comming "Great Deppression", micro and sony have been waiting for things to pick up before they try and launch a new system, but the reality is things aren't going to pick up, not for a long time. The economy has been limping along for 5 years now on the back of global central banks "printing money" out of thin air, the actual collapse hasn't even hapened yet. Can we really expect the continuation of the gaming experience we've so far grown up with in these dark times?... sorry to be so down beat, just being a realist.

starfox15
starfox15

It's almost like people caught wind of the fact that the console is 8 years old and is getting replaced by a new console. Or something like that... Can they really expect consistently high sales when it's been out as long as it has been and with a looming launch of the new console imminent?

pratikrockstar
pratikrockstar

cant wait for next gen consoles and new xbox is way far better than ps4

x_hunter00
x_hunter00

Not surprising. You can't keep getting such high sales marks with out it eventually slowing down. It's similar to what is happening to the IPhone. Normal ebb and flow business.

Galai
Galai

Maybe if the bill fails, they will move to ban assault rifles and large magazines in video games. Leave us all with knives and pistols to fight each other.

jtthegame316
jtthegame316

IGN = neutral Gamespot = playstation fanboys

tazdevil33
tazdevil33

It is in it's final year of existance. it is no surprise people are not buying it.

Plus i logged onto PSN and i can download 10 brand new demos. Logged onto Xbox live and there was 1 maybe 2 new demos.

At least in Australia they are way behind PSN updating content on the marketplace.

I moved to PC apart from PS3 / 360 exclusives about a year ago and once you do , you never look back.

Even a modern laptop spanks the 360 in game quality. Just to experiment i turned all options to low on Far Cry 3 and it stiill looks better than the console version.

This is pretty poor but people just seem to accept inferior rubbish on consoles now.

There are a few exceptions and i did pick up Halo 4 on 360 but it is the only game worth buying on the console in the past 12 months.,

Unless you don't have The Witcher 2 for PC or can't run it properly on one.

PS3 is not much better, Ni Ni Kuni and a few this year i will get but PC i now have over 250 games on steam and 20 odd on Origin . All at a fraction of the cost of console games.

Add in sites like GOG.com where you can buy DRM free games for PC and it is safe to say Pc will still be the best gaming platform fo some time to come.

Just look at the difference in DMC - Over 200 frames a second on PC and struggles to reach 30 consistantly on console. PS3 version even drops down to 20 at times.

The next XBox would have to be incredible to make it worth owning one these days.

mariokart64fan
mariokart64fan

360 is falling because it is old as heck ,im actually surprised  wiiu is not flying just yet,guess people are waiting til when its to late 

ClaudiusCaesar
ClaudiusCaesar

So, Xbox 360 is already behind Wii and PS3 on worldwide sales and its downfall sales starts that big. In the end, in few years, 360 will be far behind Wii and PS3.

SuperDutchy
SuperDutchy

This is happening for a number of reasons:

1) Because the Xbox 360 came out in 2005, by the time the new Xbox comes out 8 years will have passed, almost double a normal generation lifecycle.

2) People already know that the new consoles are coming out this coming holiday, why would you spend 200-300 dollars on something you're going to replace in a year?

3) Everyone in their core demographic already has a 360, if you're just now hoping on the 360 bandwagon, it's because you're casual, in which case you're probably going to play it until the PS4 and Xbox 720 ( or w/e the heck it's going to be called) get cheap.

4) Because I got in one little fight and my mom got scared and said "You're moving with your auntie and uncle in Bel-air" 

5) Because the FSM said so. 

kryptin
kryptin

The 360 is 7 years old.  We've never let a consoles life go this long without a replacement available.  Most who want one have already got one.  They are not going to go out and buy another one.  It's impossible to keep sales up when the market is already saturated with your product.  This news is the kind of thing that will make MS push out another console as the 360 tap is slowing to a trickle.

trust2112
trust2112

I got a 1000 dollar machine that makes your Xbox 360 look like an original Coleco pong console. MS should make a MAME type emulator for xbox games to be ported onto PC's. I will never spend money on a console, that will only play specific games. If it's not good enough for pc placement, then it's not good enough for me too play.

Ushae
Ushae

Unsuprising considering next gen is around the corner.

DARKKNIGHTPRABZ
DARKKNIGHTPRABZ

ive been an PS fan for a long time,  but thought of picking up a  360 for halo , or gears of war, witcher, 

maybe when it gets cheaper, as 720 is released

boarwar
boarwar

console ownership is not exponential. EVERYONE needs a dvd player, a few need gaming consoles, a few need blu ray. Once the market has been tapped for console owners, yeah sales will drop. If you or your parents/old folks need a "Netflix player" in the year 2013....PS3 has blu ray so why would you buy a fancy DVD player with subscription internet, aka xbox.


InquisitorCrox
InquisitorCrox

At this point, it is the worst possible moment to buy a 360, so its normal.

The WiiU is the strongest console atm and the PS3 is the best atm, being better than the 360, due to overall quality, Blue-ray, free MP, but having all the titles WiiU hasnt. The 360 is the weakest option atm.

Halo 4 and Horizon are not system sellers, this generation is over in a few months, the financial crisis demands prudency.

steelmouth
steelmouth

@S_Pac_316 @GH05T-666  nah there is still like 25million broke bums who wish they can afford the 360 and are just waiting for that $99 price tag

imm_84
imm_84

@chrispicard as long as we have creative humans .. we are good.. worst case you will play low budget games the will rock your world (fun wise, not graphic improvement) .. I dont even mind going back to the MSX days with low number of developers ..  till this day I haven't seen greater concepts of the past.  Castle excellent you have been missed ! 

GH05T-666
GH05T-666

@chrispicard remember the rich get richer and the poor gets poorer so there will always be people to buy this stuff, it wont be everyone though

SirNormanislost
SirNormanislost

@jtthegame316 

lol why? did i miss the part in the article where it says "hahah you suckzor M$ sony i bethar than you!!!"

oh wait no it doesnt....

sladakrobot
sladakrobot

@tazdevil33 So you say "a modern laptop spanks the 360"! Yeah it does technically-wise for sure.

But i would like to see a 7 YEARS OLD LAPTOP doing what the X360 can.
Also you need to understand that consoles never been about top end specs and never ever was chasing pc-standards!
You could also say a modern simple mobile calculator has better specs than a SNES but there must be a reason why SNES and its games are cult.

Kravyn81
Kravyn81

@SuperDutchy No shit. With the rumor mill going into overdrive it's no wonder people are holding off.

CptJohnnyRico
CptJohnnyRico

people are waiting for next gen consoles, i can't wait to try it out gonna be awesome

Kravyn81
Kravyn81

@trust2112 *gasp* really? PCs are better than consoles? Holy shit! Stop the presses! This mofo has top secret knowledge that he's laying out RIGHT NOW!!!! The repercussions from the disclosure of this information may be felt for YEARS!!!!

sladakrobot
sladakrobot

@trust2112 1000 USD machine? LOL Well,every pc in a MS office makes your pc look like a poor pong machine!

Dude,Noone is forcing you to buy a console...why you even bother posting here?

tazdevil33
tazdevil33

@DARKKNIGHTPRABZ i would say The Witcher 2 is the surprise besides Halo 4 . It really is a great game on the 360. Obviously no where near the Pc quality but it really shines on the 360. I am sure you would love it.

I found the console loading to be a bit of a pain but for the most part it holds up well. It isn't the sort of game that needs an insane framerate to run either.

Such a shame they didn't convert The Witcher to 360 first though as starting at part 2 really seems silly in this amazing franchise.

You wil see alot of die hard PC fans and reviewers were also impressed at the conversion. It is close to what it is like playing on a PC in 720p on medium settings , aside from a few things.

This might not sound like much but the game is beautiful beyond belief even at these moderate settings.

It still is easily one of the best looking games to ever be released .

I was just happy more people got to experience it due to the decent conversion.

Basically anyone who has a 360 that didn't bother missed out on the best single player game available on the platform.

adrdeju
adrdeju

@boarwar ha ha, that's funny.....troll.

DARKKNIGHTPRABZ
DARKKNIGHTPRABZ

@InquisitorCrox  

im still thinking of maybe picking up a 360 for the witcher, or gears series.....

but maybe when it drops even lower. 

this generations has been big

tazdevil33
tazdevil33

@MatrixGamer78 @tazdevil33 lol it's not my steam :). I just enjoy it becase of all the amazing cheap games it offers.

Thanks for your constructive comment though.

tazdevil33
tazdevil33

@sladakrobot True but my point is not many keep 7 year old computers to play the latest games on so why have we been forced to keep old tech on the console front.

The PS3 has some great looking exclusives this year coming out but the 360 has nothing at all.

i would just like to see programmers challenge themselves more and produce better games for the 360.

Most of the games i buy on Pc are not latest release games as most late release games are pretty atrocious on any platform.

The soul has been ripped out of most games and when i see how many people think Skyrim is the ultimate RPG i feel sad.

Besides a handful of titles on the 360 i haven't seen anything that makes it worth owning one in 7 years.

The original Xbox 1 which i still have is amazing and i have quite a collection of games which i still play today.

So it's not about the graphics more about what Xbox divsion has done to the 360. Concentrating on Kinnect instead of decent games has caused the Xbox to become next to useless as a games platform.

Kravyn81
Kravyn81

@CptJohnnyRico One thing's for sure, neither company can release no $500-$600 systems this time around.

sladakrobot
sladakrobot

@digi-demon In a normal citytraffic with a Ford Focus ones might reach its destination faster. Just saying...

moglesby12000
moglesby12000

@DARKKNIGHTPRABZ @InquisitorCrox Witcher 2 makes it worth it.   Although, will say I played the PC and Xbox version and, if your PC can handle just go that route.   The graphical difference is sick.  I started on PC but then my system crapped out.   Got the game for Xbox but it looked so terrible in comparison I waited 8 months till I got a new PC to finish the game.  I know it's always better looking on PC, but with this game it was worth wait.   And the game itself is among the best RPG's ever.  


Besides, in the next Steam sale it will likely be $7.49 again.  Spring  isn't far off.  

tazdevil33
tazdevil33

@Shadowblade2584 @tazdevil33 @sladakrobot haha i am looking forward to Ni Ni Kuni though. Haven't played a decent RPG in a while and managed to find the one with the hardcover spellbook too. Looks to be amazing :). Just wish it would get here lol.

How good is that mod that person did for Morrowind? I was in awe at how much they enhanced that old game. It is far beter to play than Skyrim.

Shadowblade2584
Shadowblade2584

@tazdevil33 @sladakrobot Skyrim? Ultimate RPG?


They have not played Oblivion OR Morrowind. And they haven't played the classic Final Fantasies (Don't give me that FF13-2 crap)

sladakrobot
sladakrobot

@tazdevil33 @sladakrobot To play a new pc game you have to buy a new pc or upgrade your current one.
The point of consoles is,no matter how new the game is,it will run 100% on your hardware(and for everyone on this worls too).
Like you said,its not only about the graphics but just compare GoW 1 to Gow 3...so making better games over years is ongoing.
True,on the PS3 are more exclusive IP's to be found but what if i they arent my taste? Whats left then to move me to Sony?
Yes,the lack of japanese RPG's on X360 is a valid point...hopefully will get bit better on next hardware.
I am with you with the Kinect...i dont have one and dont plan to get one(but dam,i will miss Crimson Dragon if its Kinect-only).
I am sure that MS is aware that few IP's arent enough to pull the sales over years and they must invest some money in future projects.