Microsoft Cuts 360 Estimates

Microsoft have dropped a huge bomb on developers, posting that they only expect to ship a total of 12 million units by June 2007. The notoriously quiet spring period has meant Microsoft will expect to ship 3 million less consoles than originally expected. Pushing out 10 million consoles before the end of the year to beat their own target has left many stores with large stocks of consoles. Microsoft's Chris Liddell said "There's a reasonable amount of inventory in the channel."

A loss of $289million for the quarter was also posted, with Microsoft explaining that repair expenses for the 360 and an increase in the console's warranty ate into any possible profits. The shipment drop ate into game publishers stock, as four of the big publishers shares dropped after the announcement.

Saint's Row publisher THQ was the worst hit, with shares falling four per cent, knocking US $1.25 off each share. Take Two saw shares drop 2.3 per cent, knocking off 40 cents. American Technology Research analyst PJ McNealy highlighted concern over revised results from hardware manufacturers, "Videogame publishers will be under pressure today after Microsoft cut its life-to-date shipment," he said on Friday.

View: Gamesindustry.biz

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i hope they drop the price, im trying to persuade a friend to buy one and not that money is a problem to him but i think this might help :D

WHA!?!? GoW isnt the only game? their are others!!!!1!!!11 :rofl:

if we are listing games then just look at some of the xbox's lineup for this year!

Crackdown
Army of Two
Halo 3
GTA 4
Devil May Cry
Alan Wake

and im sure their are more that i just cant think of right now! not to mention the ones that are already out! but lets not turn this into a debate on who has the better games

Hmm I wonder if they will drop the price a $250 core would be a great deal. Also I believe them when they say that repair costs have ate away at their profit mine is in TX getting repaired right now.

dagamer34 said,
Maybe because Microsoft has finally realized that not everyone wants to play Gears of War? 1 game doesn't make a system.


yah like MGS, if you think GOW is the only good game on the x360 then you have some reading to do, typically there are only a few games that seperate consoles, IE sony and MS

Sony
MGS
FF

MS
Halo
GOW

Nintendo says Hi!

Nintendo:
Mario
Zelda
Pokemon
Metroid
Fire Emblem
Wii <Insert title here> series
Brain Age
Big Brain Academy
Nintendogs

Nintendo has a lot of games (from multiple genres, unlike the X360) to differentiate itself from the competition, combined with the new control interface means (like the DS for its first year), Nintendo can virtually carry the console until decent 3rd party games start to be released on the Wii.

Xavien said,
Nintendo says hi
Yeah but then its also debatable that Nintendo has to get castrated versions of other games that are on the PS and Xbox due to it running far older hardware. You wont see anything like Oblivion on the Wii. Its also a matter of preference whether you like the control or not. Lastly while Nintendo as a first party has alot of great titles, especially Zelda, mario and mario kart it does miss some of the bigger non exclusives such as the GTA series, Oblivion ect. In the end it still isnt doing any better or worse than other consoles because of it. Yeah it has the best 1st party support but then again I feel 3rd party support isnt always on par with other consoles.

BTW my brother has a Wii and this wasnt a Wii bash, merely stating that the Wii's 1st party support while good doesnt necessarily mean in the long run the consoles doing alot better game wise. All the consoles really compete on par in the end.

Smigit said,
Yeah but then its also debatable that Nintendo has to get castrated versions of other games that are on the PS and Xbox due to it running far older hardware. You wont see anything like Oblivion on the Wii. Its also a matter of preference whether you like the control or not. Lastly while Nintendo as a first party has alot of great titles, especially Zelda, mario and mario kart it does miss some of the bigger non exclusives such as the GTA series, Oblivion ect. In the end it still isnt doing any better or worse than other consoles because of it. Yeah it has the best 1st party support but then again I feel 3rd party support isnt always on par with other consoles.

BTW my brother has a Wii and this wasnt a Wii bash, merely stating that the Wii's 1st party support while good doesnt necessarily mean in the long run the consoles doing alot better game wise. All the consoles really compete on par in the end.

Maybe, but the 1st party offerings of Nintendo are more then enough to carry a system until those 3rd party exclusives start coming in. We have seen it with the DS (it took over a year of the DS outselling the PSP 4 to 1 to finally get 3rd party developers to make exclusives for the system).

While i agree that the wii is running on less advanced hardware then the others, that doesn't mean that exclusives will not come or that they are any less 'killer-app' just because the graphics are not as good. For a great example, the DS is getting Dragon Quest 9 (exclusive) and it is a great exclusive to have, even though the graphics will arguably be less than Dragon Quest 8 on the PS2.

Great games are made by great gameplay, graphics come a distant 2nd.

I agree Nintendo is a killer developer. What I will wait for though is see where they are in 3 or 4 years time. Your right Nintendo can certainly carry a system, it did it more or less with every console it has released but the problem was that some of their consoles are too dependant purely on the in house games. The Gamecube suffered as a result. It appears the trend is changing and 3rd parties have embraced the Wii which is good news IMHO.

Gameboys never really needed the assistance but since its always been the dominating force in its field. Its the consoles where Nintendo lost a bit of ground in the past years but I do love to see them springing back.

Netrack said,


yah like MGS, if you think GOW is the only good game on the x360 then you have some reading to do, typically there are only a few games that seperate consoles, IE sony and MS

Sony
MGS
FF

MS
Halo
GOW

No diversification will lead to a failure sooner or later. Both AAA games on the Xbox 360 will be shooters. what if I don't like shooters? Microsoft won't get the casual gamer unless they diversify (and no, no one is going to spend $400 on a system just to buy arcade titles).

As for Sony, it's in an even hotter predicament in that it depends 100% on 3rd parties for sales of its consoles. With numerous rumors that MGS might eventually come over to the 360, and the fact that Square-Enix said it won't as heavily support the PS3 as it did the PS2, you can see they are in hot water.

This will probably give them MORE reason to cut it. I think they should... it'll get more people buying.

It probably won't take much for Microsoft to negotiate lower price points on the individual pieces of hardware, and then drop the price. If they dropped it by $100, their core system would cost less then a Wii, and that would really help things I think.

~Weed

Even at $400 for the "real" 360, I'd have to say it's the best gaming console out there for the money. But Weed's right...if they drop the price to compete with the Wii, sales should pick up considerably because that'll be one less reason to buy a Wii. I have not been a fan of Nintendo since the days of the Super Nintendo, but I have to admit that Wii Sports is pretty cool, and Microsoft has to compete with that too.

bluej21 said,
if they drop the price to compete with the Wii, sales should pick up considerably because that'll be one less reason to buy a Wii.
it may also add a slight sting to Sony since they wont be releasing the PS3 in Australia and Europe until March and at a far dearer price.