Microsoft to ship 13-15 million 360s by June 2007

CFO Chris Liddell says software giant will try to triple its next-gen hardware installed base by the end of its fiscal year next June.

Yesterday, Microsoft announced robust earnings for its 2006 fiscal year, which ended on June 30. Inside its financial report, the company also revealed the results for its Home and Entertainment division, which manufactures and markets the Xbox 360.

The year-end tally brought both bad and good news on the Xbox 360 front. As is the case with most platform launches, each new console is costing Microsoft money--so much money, that Xbox 360 costs wiped out income from Home and Entertainment's profitable projects. Though the division took in $4.2 billion in fiscal-year revenue and $1.14 billion of revenue during its most recent quarter, it is still in the red. The department suffered an annual operating loss of $1.26 billion and a quarterly operating loss of $414 million.

That said, Microsoft's lavish spending has bought it some sizable market share. The company also announced yesterday that it shipped 5 million Xbox 360 consoles worldwide, hitting the upper end of its 3-5 million target for the console's first six months on the market. In the last quarter alone, the company overcame persistent hardware shortages and shipped 1.8 million 360s worldwide.

While the Xbox 360 is off to a good start market-penetration-wise, Microsoft plans on expanding the console's installed base even further during the next 12 months. In a conference call with analysts after the earnings announcement, Microsoft chief financial officer Chris Liddell predicted that "by the end of the [2007] fiscal year, we will have sold 13 million to 15 million Xbox 360 consoles since launch." Microsoft's 2007 fiscal year ends on June 30, 2007--just over 18 months after the Xbox 360 went on sale on November 22, 2005.

Will Microsoft make its goal in the face of not one, but two rival next-gen console launches this fall? That remains to be determined, but the console will have the advantage of being cheaper than the Sony PlayStation 3 and having a bigger game library than the Nintendo Wii. The upcoming 12 months will also see several exclusive "system seller" titles be released for the 360, including Epic Games' Gears of War, which is tentatively due this holiday season. Halo 3's nebulous "2007" release date also means it could possibly hit stores by next June, although the previous two Halos were released in November.

120 Comments

  • UntoldDreams

    Posted Sep 27, 2006 10:34 am PT

    Give it up MikeGoBlue its public knowledge now you are a paid Microsoft employee.

  • sm0ke311

    Posted Sep 11, 2006 7:13 am PT

    holo3 bundle xbox360, hdd,dvi cable, wireless controller, and ofcourse halo3. sounds very nice=)

  • twtech

    Posted Aug 30, 2006 7:33 pm PT

    They can get there, but they need a wider variety of games. Specifically, the 360 is lacking a good platformer, a good RPG, and a good adventure game. Most people don't want to pay $600 for a PS3, but if they can't get certain types of games anywhere else, they won't have much choice.

  • mike_mgoblue

    Posted Aug 30, 2006 8:11 am PT

    Xbox 360 is the fastest selling system ever in 40 of the 41 countries it has been released in so far. The Xbox 360 is receiving more third party support than any other system. I am very happy to own an Xbox 360, and I look forward to purchasing the HD-DVD movie player attachment for the Xbox 360 when it is released for Christmas of 2006. I am a big fan of Star Trek movies, and those will only be available on HD-DVD. Members of my family are big fans of the Lord of the Rings and Harry Potter movies, and those will also only be available on HD-DVD. My favorite movie series is The Matrix, and those will only be available on HD-DVD. So, now you can see why I am looking forward to owning an HD-DVD movie player!

  • FlashNovice

    Posted Aug 22, 2006 6:39 am PT

    Go Nintendo!

  • mariokart64fan

    Posted Aug 16, 2006 8:27 pm PT

    dont think so ms keep dreamin , unless they drop xbox live charges , and even some old game dls they will sell more there is no reason why pd0 maps should still cost 400 msp or even pgr pack1 to still cost any points when pack 3 is out now , wii is goin to offer free online and even have it out of the box you can not do this on xbox350 or xbox or even ps3 so my guess when wii launches ppl would buy them and continue until nintendo reign supreame again and if nintendo is doin everything they said theyre doin then my gosh thet will succeed im already interisted in madden ive never liked football til now and fps will evolve just like when goldeneye 007 hit , im still playing that to

  • Myromarvelous

    Posted Aug 14, 2006 9:10 am PT

    The only reson there arn't any "Must have titles" at the moment is because they're waiting for the PS3's release to try and damage their sales (not likely).
    Gears of War and Mass Effect are my must have titles. Go PS3, Go Xbox 360 and Go Wii. competition breeds innovation. I hope they all do well.

    (the rumours being spread were by fanboys [and possibly other companies] trying to trash the system, it's a shame why people can be so immature).

  • DonMicallef

    Posted Jul 30, 2006 12:54 pm PT

    Remember, when 360 started, a rumor went about saying they kept glitching up, and were crapp. Even though it was untrue many people did not buy them for that reason. So, if that rumor had not begun the count might have been 6-7 million presently. Since this is also my first comment I would like to add this next phrase... Googleee Shmoogleedorf mc poopie

  • themc_7

    Posted Jul 25, 2006 5:30 pm PT

    holy, that's pretty impressive! 13-15 million 360's, I'll have to pick one up soon.

  • i_love_my_ds

    Posted Jul 25, 2006 4:24 pm PT

    looks pretty good

  • mhrnw

    Posted Jul 25, 2006 6:25 am PT

    360 is definitely a better purchase then PS3. For those of you who want a PS3 just for the new Metal Gear, maybe you should get a 360, check out the new Splinter Cell, and save some money along the way. Splinter Cell is just like Metal Gear but better. The only game that I would want for PS3 that's not on 360 is the greatest driving series of all time, Gran Turismo. I have yet to see a game for either XBOX system that comes close. Who wants to buy a system just for one game? Especially a $600 system.

  • DaemonRacer

    Posted Jul 24, 2006 8:35 pm PT

    Sony has always abused its customer base . MS has already dropped the 360 price once where as Sony's PS2 is still $130 for a system that will be replaced in 5 months. As for Blu-Ray, you can only pput so much information on a deisk & HD-DVD is more than adequate to handle it.

  • xeros89

    Posted Jul 24, 2006 3:24 pm PT

    Both Xbox's are fine console for first person shooters, some action games, sports and driving games. But zero Japanese third-party developers equals zero Japanese RPGs, action, and adventure games. Since those type of games represent 95% of what I play on any platforms...I just see the X360 as a very cool, very capable, but also very specialized machine, not because it *can't* run the games I mentioned above, but because it won't. The big Japanese developers will keep pumping out games for Sony and Nintendo, never for Microsoft. The game I'm looking forward to the most on the X360 is Ninety Nine Nights, just to show you.

    I'll wind up with all three consoles (just like this gen) again in 2-3 years. But for now, I don't care much about the X360, its warhawk-like cooling system, and its stupid sports games.

  • kraskp

    Posted Jul 24, 2006 3:14 pm PT

    i'm starting to regret having a 360.. it was a lot fun for the first couple months, but lately i find myself playing pc games or the ds, there's really nothing interesting on the 360 that isn't on the pc (with better resolution, graphics, and framerate, plus $10 less). I'm hoping Gears of War is good as it looks, otherwise i should have just put that $400 towards better pc components

  • capthunt

    Posted Jul 24, 2006 11:41 am PT

    [This message was deleted at the request of a moderator or administrator]

  • saf_jut

    Posted Jul 24, 2006 11:03 am PT

    well although there arent that many good exclusive games yet but im certain microsoft has some sort of strategy which well see when the other next gen consoles come out !!!

  • Plays_4_Pants

    Posted Jul 24, 2006 7:58 am PT

    THis system has been out for almost a year and there's still no big reason to buy one...and maybe 2 semi-reasons to get one. graw and oblivion. and they're over hyped .

    This gen of games is such a disappointment.

  • ChronitoX

    Posted Jul 24, 2006 6:34 am PT

    Like soulknight63133, i think if the xbox 360 dont bring more games like rpgs or adventures games i dont see the future of that console, i have one im seriously thinking in selling it put because i want a ps3 whit more games and variety...

  • mafiareaperv2

    Posted Jul 23, 2006 7:04 pm PT

    i dont dont really like xbox360 but im impressed.!!

  • xtrememorph

    Posted Jul 23, 2006 6:59 pm PT

    go go xbox 360!!!!

  • slayersdeath200

    Posted Jul 23, 2006 2:22 pm PT

    in my opinion the 360 will win this round because of its line up of games that are coming out. most of the PS3 games that have been mentioned are on the 360 except metal gear solid (way over rated). it is too over price i cant see many people paying that much for a console with only about 2 only PS3 titlles.

    blue ray to me isnt needed in this gen of console or the next because its not really used only for major back ups in big companys. games arnt even filling normal dvds yet so if u are thinking of buying a PS3 dont bother because it isnt what its cracked up to be

  • soulknight63133

    Posted Jul 23, 2006 2:04 pm PT

    No variety of games on X360? To be honest , I don't see one major genre that there's not at least one X360 game for. Including RTS with Lord of the Rings Battle for Middle-Earth.

  • clinton514

    Posted Jul 23, 2006 8:31 am PT

    The should concentrate on their 10 million first. lol

  • relset

    Posted Jul 23, 2006 5:53 am PT

    that is really awesome, they`ve better improove windows vista to help pc gamers

  • thekey

    Posted Jul 22, 2006 6:58 pm PT

    Thank you MS!

    The 360 is prime PS3 will not get a dime out of me.

    Its time for a new ruler in the console market.

    3 6 0 is in the house!!!

  • zidura

    Posted Jul 22, 2006 5:51 pm PT

    I don't know if it's a good or a bad thing, but since buying a 360, I haven't played console games this much in my life. The quality of visuals and the depth of games offered with the 360 is just so much better than previous generations. I haven't touched my PC for games since I picked up my 360(my previous platform of choice). I'm looking forward to the good games that keep coming because of the healthy competition that's been created.

  • screwy_matt

    Posted Jul 22, 2006 3:54 pm PT

    I pretty much think that Microsoft has this round. Sony has ruled the console market for the past 2 generations, it's time for someone else to take the lead. Yay!! Gears, halo 3...bring it on. i love my xbox 360.

  • Sydwynder

    Posted Jul 22, 2006 1:11 pm PT

    I love my 360 and it is the only system I am likely to own this generation. I am stoked about the great games coming to 360 and frankly I could care less about never playing the newest Metal Gear Solid or Final Fantasy games......2 series way overrated........give me Halo, Gears and I'm happy........oh and FEAR, Huxley, Too Human, GTA IV and please please please Assassin's Creed!!!!!!!!!

  • deathbal888

    Posted Jul 22, 2006 1:05 pm PT

    I hope halo 3 doesnt come out in November like the other two. I am defenitely an xbox person but it will be hard to compete against the playstaion 3 because it will have slightly better graphics because of its blu-ray discs. But at the same time..the 360 is cheaper so......who knows

  • omegakaiser

    Posted Jul 22, 2006 12:11 pm PT

    Poor Playstation 3 has no chance against the Great Overlord 360, without its precious Grand Theft Auto exclusiveness its not a good challenger.

  • -Shadowbinded-

    Posted Jul 22, 2006 9:30 am PT

    it seems like almost nobody is looking forward to buying a PS3... well me neither.. because most of its best sellers also come out for the xbox
    in my opinion.. the PS3 will be the worst of the next-gen consoles... just like durial 117 said.. im also looking forward to buy the Wii and already have the 360.. no desire whatsoever for the PS3... it'd be a waste of money

  • trekkerguy

    Posted Jul 22, 2006 9:09 am PT

    Certainly good news, good work MS and friends. lets keep it on track to win the Gen!

  • durial117

    Posted Jul 22, 2006 9:04 am PT

    Gears of War and Halo 3 and the ported games from the PS3 like GTA and Assasins Creed will drastically help the progress of Microsoft. I already have a 360 and am thuroughly enjoying every miniute of gameplay and I plan to get a Wii when it is released. I have no plans to buy a PS3 but I do think it is an impressive system but its not worth it because Halo 3 in my opinion will be better than any Final Fantasy game put out there.

  • pwnr

    Posted Jul 22, 2006 7:11 am PT

    [This message was deleted at the request of a moderator or administrator]

  • sasuke55

    Posted Jul 22, 2006 4:53 am PT

    There are alot of games taht are coming to the 360 to sell that system this holiday season. But for a company that was hell bent on gaining siginifigant market share in the Asian sector it hasn't produced many Jap style RPG's yet. I know there are some coming. But if they want to hit that mark forsure they would have made sure those games were ready for this holiday season.

  • Igwababa

    Posted Jul 22, 2006 4:31 am PT

    IF that in MS calculations include the Halo 3 luanch then that seems pretty low. However if say Halo 3 luanches in November like it always does then this seems like a very good thing especially heading into the Holiday season 07. I am just curious at the PS3, how fast will it sell or will the price keep back consumers till a price drop. Personally I dont see the PS3 taking the lead till late 07 Holiday or 08.

  • xBlitzerx

    Posted Jul 22, 2006 4:06 am PT

    I can actually see this happening. And I said I'd never buy an Xbox.

    November, I'm getting a Wii, forsure. Then if there are a few good 360 games, and a price drop. I very well might pick one up by April 2007.

    I won't own a PS3 untill early 2008 at the earliest. Even if there are some awesome games, they won't go anywhere. I can wait for a PS3 price drop.

  • nuwans_basic

    Posted Jul 22, 2006 2:16 am PT

    anybody else think that the 360 is for americans only?
    it doesnt have enough adventure, driving etc games that the other markets want......

    main reason to why i wont buy a 360 (yet)

  • Emiliano_C

    Posted Jul 22, 2006 2:15 am PT

    mikedude: yes, there's a difference and it can be quite BIG.
    according to MS, they shipped 3.3 millions Xbox360 until June 2006 in USA.
    According to NPD, 2.0 millions Xbox360 were sold in USA until june 2006.
    This is a 1.3 millions difference in USA only.

  • F1sTDaCuffS

    Posted Jul 22, 2006 12:59 am PT

    all i can say is THANK YOU BILL GATES, i hate asian game companies they make the dumbest games. if had his money i would have done the same thing. bye bye ps3, they dont have 4 billion to spend on a new system. ...

  • Holesinswiss

    Posted Jul 21, 2006 9:58 pm PT

    Kravyn81, you're missing a zero. The PS2 has sold well over 100 million units since its launch.

    http://news.google.com/news?hl=en&ned=us&q=PS2+100+million

  • Kravyn81

    Posted Jul 21, 2006 9:43 pm PT

    "13-15 million" by next June? Hmmm...that sounds a bit overly optimistic right now, but considering for the price of one PS3 gamers can get a Wii & premium 360 those numbers might be more plausible than a lot of you might think.

    However, the PS2 only recently reached 10 million units sold a few months ago, and it's been on the market for over six years now. And for a while it was the only console on the market worth getting yet it still took six years to sell 10 million units, yet MS is stating that within a year they will have sold more units in two years than the PS2 has in six? That's a bit extrenuous considering the 360 will be facing some stiff competition from both Sony and Nintendo, whereas PS2 had it relatively easy when it first came out and even after Xbox and GC still was the preferred console.

  • nintendorocks

    Posted Jul 21, 2006 9:23 pm PT

    Keep the Xbox 360s coming! I still have a bunch of friends who still don't have one.

  • mikedude_01

    Posted Jul 21, 2006 9:02 pm PT

    Is there a difference between shipped and sold?

    "we have know idea whats going to happen. i mean the wii could be the favorite system instead of x360. its like a merry-go-round. at first everybody liked nintindo first then came sony then came microsoft.and then it might start all over again."

    The difference is that Sony gained a majority of the market share in their first generation while Microsoft did not gain the majority in their first generation.

  • nidhineshsingh

    Posted Jul 21, 2006 8:11 pm PT

    the ps3 is sold out before its release the 360 was called in for repair. i know because im in the long waiting list....... all sony game lovers welome to the new GAMEING WORLD
    ALL GAME LOVE DONT GET ME WRONG ... . . . . .

  • damo320

    Posted Jul 21, 2006 7:48 pm PT

    If Halo 3 is released before June next year they will do it easily. If not - they're gonna have to push it with some nice deals.

  • juvinwo1

    Posted Jul 21, 2006 7:36 pm PT

    thats good news, go M$!!

  • mark_unix

    Posted Jul 21, 2006 7:26 pm PT

    no more 30million withint 2 years then? guess it isn't the huge hit as Microsoft expected...

  • cesarotromundo

    Posted Jul 21, 2006 6:01 pm PT

    W/E! I ALREADY GOT IT!

  • Havoc19

    Posted Jul 21, 2006 5:52 pm PT

    360 would def sell more with fighting games, jrpgs (to go with MS' western rpgs) and maybe some platformers, 360 cant win the console war solely on driving and fps games, it needs more variety

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