Ahead of earnings release, Microsoft says Xbox One monthly sales doubled

On Tuesday, Microsoft will announce its earnings for the company's fiscal year fourth quarter. Ahead of this earnings announcement, Microsoft has said that the Xbox One has doubled the sales of the prior month which can likely be attributed to the new SKU launching with the $399 price point.

On June 9, Microsoft unbundled the Kinect from the Xbox One and lowered the price to that of the PlayStation 4, $399. The new SKU marks a $100 decrease in price from the version of Xbox One bundled with the Kinect sensor, which Microsoft is also still selling.

Clearly, this is good news for Microsoft as more sales of the hardware will likely lead to more Xbox Live subscriptions and sales of games where Microsoft earns a royalty too. Given that Microsoft hasn't revealed exact sales figures for May or June, however, it's difficult to tell the exact impact.

Microsoft will report its earnings next week, and there is a strong probability that they will announce layoffs either later this week or on Monday to trim overhead that was acquired in the Nokia mobility purchase. The NPD's console sales figures will likely be released before the earnings report, however, which will reveal if the increased Xbox One sales put it ahead of Sony's PS4 for the month of June.

A spike in sales was expected after slashing the price of the base Xbox One, and the sales in coming months will likely be a stronger indication of consumers interest in Xbox One. With several high-profile games coming out soon from the Halo franchise and the fall release of the latest Call of Duty entry, we suspect the company will still be able to move consoles at a rapid rate even after the price cut spike begins to fade.

Source: Xbox Wire

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17 Comments

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I must say I bought a launch day console and I'm not disappointed. I have zero interest in dancing and singing my arms around our Kinect sports type stuff. My joy with Kinect comes from navigating via voice, recording via voice and not a menu snapped to the side, screaming for ammo in BF4 and my character asking in game, mic-less chat, skyping and BluRay controls

You do realize that the big thing about Kinect is it's advanced motion detection which you don't seem at all interested in. Doing things via voice can be done with a FAR simpler and cheaper mic array. Also Voice commands aren't Xbox One exclusive and even on the Xbox One going forward you're going to lose them in a lot of high end games because they are going to disable them to get that 10% Kinect reservation back.

I was one of those sales for the $399 Kinect-less Xbox. I would love to see a breakdown of sales between the two SKU's.

I'm not a big fan of the Kinect, but why didn't you buy the $450 with Kinect + Game? Not interested in either Titanfall or Forza? If you wanted either one that would make the Kinect like $25 which is good to just have.

Zaitt said,
You're missing out :C

I mean a little, but barely. If you're only ever going to use it for gaming and nothing else then you're not missing out on much. Auto controller binding maybe but that's it.

Cutting the price helps of course but they also did a good job at E3 and since, showing off what's coming before the end of 2014 that has gotten more people interested in buying one. Price is the first factor but second is the games and 3rd is the changes to XBL and Games with Gold that also helps.

francescob said,
Who told them I bought one? :o

I know you're joking, but I'm just gonna point out that in a world where some people believe the Kinect is used to spy on them, tracking down a purchase transaction for the Xbox itself is pretty trivial to do.

Or did you pay cash?

Torolol said,
so kinect is evil for sales after-all.

There is a very small, small number of people who wouldn't buy an Xbox one with the Kinect. The sales boost is primarily due to the $100 price difference. People see cheap, they buy.

Avi Patel said,

There is a very small, small number of people who wouldn't buy an Xbox one with the Kinect. The sales boost is primarily due to the $100 price difference. People see cheap, they buy.
I understand your point, however, I believe the number of people who don't have a use for Kinect might be larger than you think.

JHBrown said,
I understand your point, however, I believe the number of people who don't have a use for Kinect might be larger than you think.

This is true. I'd like to have seen them sell the standalone for $350 at launch and with Kinect for $500. Standalone for $350 (and not trying that BS with the DRM) would've dominated PS4. There was a Reddit AMA done by an XB1 engineer (anonymously) that said the system could be sold for "significantly less than $399 without Kinect" but later went on to state their old BS about how Kinect is a necessary part of the "experience". I don't know if everyone on that team was delusional or what. Kinect is nifty but it's not worth adding $150 to the system's cost, especially considering PS4 is just $400.

It makes sense, they've been selling the bundle with the Kinect and a game for $450, standalone for $350 would easily be accomplished considering how expensive the Kinect is.

But at this point your options are standalone for $400 or with Kinect and a game for $450, it doesn't really make much sense to buy the standalone system unless you really don't want Forza or Titanfall and wouldn't even value the Kinect at $50 (which is about what I would be willing to spend on the Kinect if I was given the choice at launch).

trooper11 said,

Or $399 was the right price. Whatever makes you feel better.

Right from the get-go, they should have launched at $399 WITH Kinect and taken the 100 dollar burn. Sales would have been so much more stellar.