MS claims 'over half' of 360 buyers didn't own Xbox 1

By Tom Bramwell Published 18 January, 2007

Quite chirpy about it, too.

Microsoft's Chris Satchell claims that "over half" of the people who have bought Xbox 360 since its November 2005 launch did not buy an Xbox 1.

"We've sold 10.4 million, but the stat you may not have heard is that over half of those sales are from people that didn't own an Xbox 1," Satchell - general manager of Microsoft's game developer group - told our sister site GamesIndustry.biz in an interview published today.

"So there're lots of new people coming in, which kind of surprises you. What we're actually finding is that our customer set is broadening, which we think is important."

That's a view well known to be shared by Nintendo, which has made significant strides with its DS and - it believes - Wii business by seeking to broaden its target demographic rather than simply selling more games and systems to existing fans.

However Satchell's comments are likely to be questioned in some quarters because Microsoft has already publicly admitted that it hasn't really sold 10.4 million consoles to consumers.

Speaking to gi.biz at CES, Peter Moore said that in the context of its own figures, "'Sold' means that we're a wholesaler of hardware and we sell it to a retailer, and that's the important criteria."

Meanwhile, recent NPD Group figures put Xbox 360's US installed base at 4.5 million, with Wii at 1.1 million and PlayStation 3 finding its feet with around 690,000 US owners by the end of 2006.

Whatever the real 360 number though, the fact that Microsoft is claiming "over half" as new consumers is likely to cause concern amongst its console rivals and surprise commentators - some of whom have been vocal in their belief that Xbox 360's early success is down to enthusiasm from the existing 24-million-strong pool of Xbox 1 owners, and not necessarily thanks to growth in Microsoft's console business.

Picture of Tom.

About Tom Bramwell

Tom is Operations director of Eurogamer Network and Editor-at-Large of Eurogamer.net. He joined the company in February 2000.

Read more articles from Tom by visiting the Tom Bramwell archive page.

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Comments (55) Latest comment 5 years ago

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  • jha666 #1 5 years ago

    I guess the other half learned from their mistakes ...

  • Aretak #2 5 years ago

    Fool me once, shame on you...

  • Steroyd #3 5 years ago

    So... the other half are either going to get a PS3 or a Wii...

  • chupachups #4 5 years ago

    I dunno... it cuts both ways, it could mean that original Xbox owners were disappointed and moved on to other consoles.

  • Tonka #5 5 years ago

    I'm one of them

  • NoCodeNed2 #6 5 years ago

    How do they know?

  • Rambaldi #7 5 years ago

    Or it could be that the original Xbox owners who haven't got a 360 just haven't got one YET.

    Consoles do sell over a 4-5yr period y'know...

  • TonyCocaCola #8 5 years ago

    Because when you buy an xbox or a 360 some dude come to your house in the night and inserts a tracking device down your urethra

  • Denny #9 5 years ago

    I'm one of them too, they didn't ask me!

    Obviously there is some spy program in the controller that overheard me (during my first week of ownership) screaming "Where the F___ is the Y button, oh triangle, why can't they just call it triangle........." and ".... wooo squeezey trigger, thats a good idea!"

  • DUFFMAN5 #10 5 years ago

    I still have mine in the bedroom,I use it as a juke box/dvd player, I also have a round 10 or so games I'm yet to play that won't run on my 360. I also still have a gamecube, waiting to get hold of a CHEAP Zelda. I think the xbox was and still is a great console.

  • Carlo #11 5 years ago

    MS trying to align itself as a system that brings in new people to the gaming fold? Why?

  • LarryLoxley #12 5 years ago

    I own a 360 but not the original xbox and I know a good few others who are the same. I'm not particularly surprised.

  • BM #13 5 years ago

    I had an xbox, and now have a 360

    I also had a cube, and now have a wii

    I don't have a PS2, but wouldn't mind a PS3



    I'm sure someone can twist these statements into any argument they wish.

  • chupachups #14 5 years ago

    "MS trying to align itself as a system that brings in new people to the gaming fold? Why?"

    I don't think they're trying to talk about bringing new people to gaming, just new people to the Xbox brand.

    I think the implication Microsoft wants to get across is that PS2 owners are upgrading to the Xbox 360 instead of the PS3.

    The original Xbox sold very badly in comparison to the PS2, so one of the aims of the 360 is to attract as many PS2 owners as possible.

  • Steroyd #15 5 years ago

    Or it could be that the original Xbox owners who haven't got a 360 just haven't got one YET.

    Consoles do sell over a 4-5yr period y'know...

    That's true but when you look at the Xbox 360's top sellers, it doesn't exactly paint the picture that their "customer set is broadening".
    Edited by 1 at 18/01/07 @ 11:09

  • rotj #16 5 years ago

    Agreed with Rambaldi. That means Microsoft are building off of a 24 million strong installed base, which will materialise over the next 5 years, as well as acquiring new customers! And if the Xbox 360's market wasn't broadening already, look what's to come:

    Blue Dragon, Lost Odyssey, Dance Dance, Mass Effect, Eternal Sonata, Infinite Undiscovery, Splinter Cell 5, Too Human, Banjo Kazooie 3, Fuzion Frenzy 2, Grand Theft Auto IV, Alone In The Dark, Assassin's Creed, Fable 2, Resident Evil 5, Crackdown, Alan Wake, Guitar Hero II, overall Xbox Live gaming functionality, etc, etc, I could be here all day! A very diverse selection of games, I might add.

    And that's before you even add the Xbox Live Arcade, which has proven very popular with non-gamers. My mum and dad love it personally. Put the 360 in the living room the other day to get them to try it, and they spent ages playing a various assortment of games. My Dad really enjoyed Geometry Wars in particular, while my mum loved Marble Blast Ultra.

    And then there's services that will sell the 360 to non-non gamers. IPTV being the big one. Already mentioned it to some of my uni mates. They have broadband in their campus accomodation. All the apartments do. But they aren't allowed to install Sky or NTL or anything like it for some reason. Needless to say, I told them about IPTV via broadband on the 360, and how it'll have 200 channels, and a couple of them now intend on getting a 360 over the course of 2007, just for that reason alone.

    Basically, the Xbox 360 throughout 2007 will easily transcend its 'shooter' status, and will become a truly all-encompassing platform, with something for everbody. Harcore gamer, casual gamer, non-gamer, those looking for an all-in-one media box for watching TV, DVD's, downloading video and music (eventually) on-demand, connectivity with Windows PC, etc.

    All-in-all, a very exciting upcoming year for Xbox 360 owners!
    Edited by 2 at 18/01/07 @ 11:11

  • Hypnopedia #17 5 years ago

    Me too - I bought (and still own) a PS2 , but after seeing how much fun my mates were having on Xbox Live decided to wait for the 360 (rather than buy a soon-to-be-out-of-date Xbox) and then "Jumped In".

    Love the system and Live was the deal breaker over waiting (and waiting, and waiting, and waiting,and waiting, and waiting) for a PS3 no matter if it's the more powerful or not.

    Decided to put down GOW and COD3 and jumped back into TDU the other night - (made such a refreshing change from murdering ! ) And had so much fun against some guys from across the pond just looning it around the island - gotta love Live.

  • asphaltcowboy #18 5 years ago

    I had an Xbox, but it was chipped, so now I just use it as a media centre under my TV, and it will stay that way until MS let me stream DivX and MPG off my PC! :p
    Edited by 1 at 18/01/07 @ 11:18

  • brooza #19 5 years ago

    I have an xbox, and now have a 360

    I also had a cube (no games though), and quite fancy a wii

    I have a PS2 (mainly used for GH and other music-related games), but don't fancy a PS3 (well, not at £425, anyway)

  • Nova5lag #20 5 years ago

    I had a PS1 and a PS2 and a PSP but I wont be getting a PS3...

    I had a NES a SNES an N64 and a Cube and I got a Wii...

    I had an xbox 1 (very late in the life cycle mostly purchased to use as a media centre and to play a few games... I was bitterly dissapointed in Halo and Halo 2) BUT I still got a 360.

    I dunno what that says about me... but Im sure the Anal-ists will find it ver interesting.

  • Xerx3s #21 5 years ago

    MS trying to align itself as a system that brings in new people to the gaming fold? Why?

    You sound surprised. The original xbox did the same. There where a lot of pc gamers who couldn't be bothered by the bland console crap that was out but a console that had many pc games and most big pc game houses working for them as well? It attracted a lot of pc gamers (inc me & some of me mates).

  • superdelphinus #22 5 years ago

    i'm one of them too
    i try to buy from a different company each generation

  • dsmx #23 5 years ago

    The thing I'm very wary about with the xbox 360 is that microsoft completely abandoned the xbox after 3 years in uk, so will they do that again with the xbox 360?

  • LeD #24 5 years ago

    dsmx

    Not a chance. They've got overwhelming pubishers support this time around, and more importantly own all the IP for all the parts of the 360, meaning that in a year or two, they'll start to break even and make a profit.
    This was impossible with the Xbox which was designed with off-the-shelves parts, and used only as a beach-head into gaming. They established the brand, got some credit and recognition - especially for Live, now they're delivering the goods.

  • sharpfish #25 5 years ago

    I didn't own an Xbox (had a gamecube last gen, a PS1 the gen before that and a PC at all times. or Amiga before that). Now I own a 360 I couldn't be happier, the way everything is integrated and the stunning output on HDTV/great online has ticked all the boxes that used to grate on me about consoles.

    If previous xbox owners don't want to buy a 360 that's their loss.

  • Xerx3s #26 5 years ago

    I think we will see a lot more xbox to 360 upgrades over the next year as the likes of bioware & bungie throw out their games.

  • lambtron #27 5 years ago

    I have an xbox and intend to buy a 360 - its just a question of when.

    Trying to save for more important things (e.g. a house) are making that a little difficult to justify at the moment. I could go out and buy one today if I wanted but I choose instead to wait.

    Surely its not inconceivable there are other people in the same position?

  • lefizz #28 5 years ago

    I bought a Pc engine at launch

    I bought a NEs when they were quite old, a SNES when they were a year old and a N64 on Launch day ( man that week on Mario 64 was a delight)

    I bought a PS1 after 18 months, a PS2 on launch day ( shite launch, no games no game to speak of for months)

    Bought a xbox after the first price cut and loved it. Live, load speeds and some great fps sold me the system. Played it way more than the PS2 even thought i played all the GTA games to death on PS2.

    Bought £60 at launch, some titles disappointed, most notably PDZ ( woeful game). Since launch the amount of quailty titles really has surprised me, best launch year of any console as far as i am concerned and live on the 360 is simply amazing.

    I might get a wii and a PS3 but there are no titles that make me want to loose money as an early adopter. The 360 is a great system and along with the DS for more quirky games totally satisfy's my gaming needs. Stopped upgrading the PC as well though that might have to change for crysis.

  • rotj #29 5 years ago

    @ LeD

    Very well put.

  • manlord #30 5 years ago

    What they are really saying is that many people that bought xbox didn't buy 360. That's called learning from your mistakes.

    EDIT: Sorry, just had to :)
    Edited by 1 at 18/01/07 @ 12:31

  • rotj #31 5 years ago

    Then what would you call people who DIDN'T buy an Xbox, and bought an Xbox 360 you clown? Gluttons for punishment? GTFOOH you troll. Accept that Xbox 360 is the new standard, and is widening its customer base. The Xbox customers will hop aboard bit by bit over the next 5 years. Not everyone's an early adopter you know. Oh, and just wait till Halo 3 comes out. Then Xbox 360's installed base will EXPLODE!

  • Rambaldi #32 5 years ago

    Indeed. What HAS the Wii or PS3 got that will even come close to something that's going to be as big as H3?
    Edited by 1 at 18/01/07 @ 12:42

  • manlord #33 5 years ago

    Guess you didn't see my edit in time, it was a joke. No need to get all caps lock on me. Have nothing against the 360 as a gaming system. My brother got one, it's good, especially like the controller. Played it a fair amount.

    But I do worry if MS will ditch it when 720 is round the corner. Like they undisputably did with the original xbox.

    That's why I myself will not buy an 360, atleast not until 3-4 years from now if ever.

  • richardiox #34 5 years ago

    I think it's funny how rotj/al bundy bigs up the 360 on the fact that it is bringing in non-gamers (his mum, dad - uni mates using it just to stream IPTV) and yet went through a period of totally tearing into Nintendo for doing just that. "how dare they ruin my beloved gaming with these watered down experiences?"

  • Steroyd #35 5 years ago

    Indeed. What HAS the Wii or PS3 got that will even come close to something that's going to be as big as H3?

    Hmmm....

    Gran Turismo, MGS4, FFXIII, Singstar - a little something for every region.
    Nintendogs, Mario, Mario, Mario, Mario, Zelda. - Reason's why people love Nintendo.

  • Rambaldi #36 5 years ago

    @manlord

    "But I do worry if MS will ditch it when 720 is round the corner. Like they undisputably did with the original xbox"

    I wouldn't be too concerned mate. As has been said the Xbox was a means to an end for MS - a loss leader at that. Dropping support for it and focusing on a pre-emtive next-gen strike in the form of the 360 made perfect sense. With an increasing user-base, develepor-base and credibility I think it's fair to say that te next transition will be smoother and better supported.

  • manlord #37 5 years ago

    @Rambaldi

    Dropping support for it and focusing on a pre-emtive next-gen strike in the form of the 360 made perfect sense.
    --------------------------------

    Yes it made perfect sense for MS, what about xbox owners? Perfect sense for them? I don't think so.

  • drumbaby #38 5 years ago

    I have a PSP. I never wanted a handheld before the prospect of PS2 type gaming on the move arrived.

    I have a PS2, may buy a PS3 at launch, but will probably wait unless a 3rd person slasher like Heavenly Sword is there and looking good.

    I have a GCN, but don't want a Wii, even slightly.

    I never had an Xbox, but may get an Xbox 360...one day....maybe.

    Put all that in your Venn diagram and smoke it.

  • lefizz #39 5 years ago

    Too true the 360 will get much better and longer support from MS, that is a given, mainly becuase they will be making money on it by then. Project xbox 1 hadnt made a big enough impact and the fact that the way the machine was built meant they would never be able to make them without a significant loss made MS want to bale early and get the next system out.

  • Rambaldi #40 5 years ago

    @Steroyd

    “Halo” debuted in 2001, quickly establishing itself as one of the top games. The game, and its 2004 follow-up, “Halo 2,” have sold a combined 13.8 million copies worldwide and grossed more then $600 million. In November, “Halo 2” shattered records with $125 million in first-day sales" source: NBC

    "as of 30th October, over four billion games of Halo 2 have been played on Xbox Live" source: EG

    I'm sorry old chap, you must have mistaken what I meant by BIG ;)

  • Steroyd #41 5 years ago

    LOL

    Okay you have uno game that sells lots over the holidays, what happens after that where's the sex appeal for the Xbox 360 post Halo?

    I very much think that any console manufacturer would prefer each of their "Big" titles to sell 5 million each dotted at certain times over the year than one flash in the pan at peak time of sales.

  • deepspacefox #42 5 years ago

    If the PS2 is officially the best selling console ever, surely that means that a lot of people who bought it didn't buy a PS1, which makes the whole MS statement pointless and just another case of history repeating.
    Gamers tend to be wary when a new console arrives, especially when its from a company who have never made one before. We all know someone who has been burned by either Jaguar, 3DO, Pippin or CD32. When the second console arrives, more people buy it because theres more faith in the company.
    I didn't buy Xbox and I'm not gonna buy 360. Not cos I'm anti-MS just because the types of games on Xbox don't appeal to me. Kinda jealous of Live though.

    edit: @Chupachups: Good point. Jaguar officially retracted. Need to swot up more on console history. My bad.
    Edited by 1 at 18/01/07 @ 21:42

  • chupachups #43 5 years ago

    "Gamers tend to be wary when a new console arrives, especially when its from a company who have never made one before. We all know someone who has been burned by either Jaguar,"

    Atari made loads of consoles before the Jaguar: 2600, 5200, 7800, Lynx... :)

    Unfortunately they never made a commercially successful console after the 2600, which was released thirty years ago... :(

  • Turrican #44 5 years ago

    Of my circle of xbox live friends, I'm the only 1 who has upgraded to a 360, the others are all waiting, but I'm sure they will all get one. Its just that there is no compelling reason for many to upgrade at the moment. The big hyped games such as Lost Planet and Gears Of War aren't giving gamers anything really new.

    I suspect Halo 3, if its good, will finally shift a large number of owners by xmas this year, along with Grand Theft Auto 4.

  • matrim83 #45 5 years ago

    I bought an original Xbox. Haven't bought the 360.

    Yet. As soon as Halo 3 gets released though............

  • LawyerOfTheTruth #46 5 years ago

    How sweet, now shipped become instaled base.
    Halo is overrated, a brainless shooter... Ico and Shadow of the Colossus are much better...
    Gears of War is better than Halo...
    Edited by 2 at 18/01/07 @ 16:43

  • cyber_nicco #47 5 years ago

    @lefizz

    I just want to mention that a month or two ago I read estimates that Microsoft are already turning a profit on 360's. Something like US $58 per console at the time of writing....

    That is in no way a dig at anything. I'm a big Xbox supporter...

  • smelly #48 5 years ago

    So another way of looking at this.. is that xbox owners were pissed off and disgruntled and so refuse to buy a 360....

  • smelly #49 5 years ago

    @cyber_nicco : What's wrong with a console company making a profit?

    Surely if your a fanboy of a machine and want it to do well.. just selling lots means bugger all if they're not making profit?

    But that $58 per console DOES sound like rubbish to me though..

    But I've been wrong before.. Dont mind admiting to being wrong.

    Back on topic..

    I actually recently shelled out for a 360, I owned an xbox but didnt play it much. So far i've played dead rising, and thats about it. There ARE games COMING that i want, but so far it's a bit "meh" for me.. Which is quite poor considering how long its been out...

  • Tomo #50 5 years ago

    I smell something that gives off a scent similar to the fish smelt by a sweaty blindfolded lesbian in a fishmongers.

  • Mr_Brown #51 5 years ago

    Can mean what it likes, doesn't change the fact that its selling very well. Thats probably due to the number of quality games available rather than brand power or marketing.
    Edited by 1 at 18/01/07 @ 20:25

  • smelly #52 5 years ago

    You've left some tuna open in the back of the fridge?

    Reet.. Im off to have a round of worms on the 360... My gamer tag is MrSmelly if anyone wants to join me.

  • soanso #53 5 years ago

    does that mean that microsoft should be applauded for selling to new customers
    or slapped
    for not convincing the 30 millionish exisiting xbox customers to upgrade?

  • bunnymc #54 5 years ago

    I had PS1, PS2, now i have a PSP and will own a PS3 in March... and yeah i do play PC games too

  • penhalion #55 5 years ago

    @Steroyd

    What? Did you read the article or just the title?

    They mean that they have attracted 50% new business. Thats a major achievement for a company and I think you'll find (and the reason for so many third parties jumping on the 360 bandwagon) that this new set of people are ex PS3 would-be buyers.

    You really are starting to look like a sony paid spin doctor. Your little quips are almost written by commity to at once offend anyone with an xbox and hype up sony's short comings. You in advertising by any chance?

  • kangarootoo #56 5 years ago

    @penhalion

    Errrm, its not the cut and dry. They said that 50% is 360 owners did not previously buy an XBox. You can't simply claim that as a big acheivement unless you can compare favourably to XBox sales.

    For example (using example figures), you sell 100 XBoxes. You then sell 20 XB360s. Of those 20 sales, 10 were "new customers" and 10 were existing XBox owners. So you have attracted 10 new customers, hurray for that. But you have still only sold 20 XB360s overall.

    Sooooo, can anyone say for sure how many XBoxes are already out there? That seems like a key figure in all of this. Once we know that, then we can start looking at this news in its proper context (TBH EG, that info should have been in the article, so, we the readers could interpret the news correctly).

    Edit: And don't be so bloody touchy. It just makes you appear to be exactly the thing are you accusing Steroyd of.
    Edited by 1 at 19/01/07 @ 16:26

  • Ares #57 5 years ago

    I accept that they've swayed a good deal of would-have-been PS3 owners, but I find the whole announcement highly dubious.

    This 'stat', or statistic as those of us with an attention span know it (he's been a Brit-abroad for too long methinks...), is probably based off of a pitifully small sample, comprised solely of the eccentrics that actually take time to fill out those freepost customer registration cards. Either that, or some poorly conceived, half-assed survey was conducted which may or may not have been designed intentionally to put a more favorable slant on things.

    It's how he smugly adorns the figures which arouses my suspicion. Supposedly unassuming remarks like 'So there're lots of new people coming in, which kind of surprises you.' Oh! What a pleasant surprise! As if to say, 'Gosh, we're even better than we thought!' And 'our customer set is broadening, which we think is important.' You think it's important do you? Everybody! Did you hear that? Microsoft thinks doing well sales-wise is important! Thanks for the inside scoop on economics Chris... you cretin.

    My point is that this ingenuousness might really be feigned. It might be a calculated dig at their competitors. And while this kind of shit is expected in the business world, I'm annoyed to see EG passing this of as a news item. Have you verified this claim? Hmmm? Have you? /pokes monitor repeatedly.

    But, if in fact, these general manager types are under legal obligations not to manufacture this kind of hype, or spin it this way or that, and is was accurate, then I'm sorry. And I admit that it is quite an interesting 'stat'.

    If it is true, I'd put it down to the public's general good-will towards any technology that flatters their egos by, at least, aspiring to be stylish, especially if it's white :p (thanks Apple, you idiots), or heavily features the letters HD in it's marketing spiel. Because it sure as hell ain't because of the games.

    Gears of War alone isn't worth the €400+ it would cost to get me HDified. When Halo 3, UT 2007, GTA IV and Rallisport Challenge 3 (fingers crossed, death threats to Microsoft officials in the post) and all the other cool shiny games grace the store shelves alongside the recently half-priced hardware, only maybe then, I might perhaps consider thinking about possibly evaluating the purchase of a 360... :p Nah, I'm definitely getting one in time for Halo, which, by the way, looks more ugly and technically underwhelming with every new screenshot released. WTF Bungie?

    Rant over.

    /inhales and exhales deeply as corridor warps. Hehe. teH m4triX rOXOrz!!1111 looollllmaollroflorz!!shift+111!11

    Edit: I've just reread the article and realised that you've qualified all the figures as Microsoft's claims, and so there's really no basis for my prolonged ravings. I also picked up on hints of your own cynicism. Soz EG. I'm a bit slow. I blame all the MS fanboys for getting me all pissed off and crap... you stupid heads.
    Edited by 1 at 19/01/07 @ 22:25

  • davisorle #58 5 years ago

    @bunnymc
    "I had PS1, PS2, now i have a PSP and will own a PS3 in March... and yeah i do play PC games too"

    Trust me.... You really didn't have to tell us you own every ps console. It's TOO obvious. One correction though. DO NOT, I repeat, DO NOT be so sure about march! lol