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

Xbox 360 News by Tom Bramwell

18 January, 2007

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.

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Comments: 1-50 of 55 in total | next 50 »

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jha666
18/01/07 @ 10:48
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I guess the other half learned from their mistakes ...
Aretak
18/01/07 @ 10:49
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Fool me once, shame on you...
Steroyd
18/01/07 @ 10:49
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So... the other half are either going to get a PS3 or a Wii...
chupachups
18/01/07 @ 10:50
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I dunno... it cuts both ways, it could mean that original Xbox owners were disappointed and moved on to other consoles.
Tonka
18/01/07 @ 10:51
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I'm one of them
NoCodeNed2
18/01/07 @ 10:53
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How do they know?
Rambaldi
18/01/07 @ 10:55
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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
18/01/07 @ 10:57
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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
18/01/07 @ 10:59
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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
18/01/07 @ 10:59
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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
18/01/07 @ 10:59
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MS trying to align itself as a system that brings in new people to the gaming fold? Why?
LarryLoxley
18/01/07 @ 11:03
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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
18/01/07 @ 11:07
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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
18/01/07 @ 11:07
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"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
18/01/07 @ 11:08
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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 1 times, most recently on 18/01/07 @ 11:09
Hypnopedia
18/01/07 @ 11:16
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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
18/01/07 @ 11:18
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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 1 times, most recently on 18/01/07 @ 11:18
brooza
18/01/07 @ 11:20
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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
18/01/07 @ 11:23
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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
18/01/07 @ 11:24
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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
18/01/07 @ 11:25
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i'm one of them too
i try to buy from a different company each generation
dsmx
18/01/07 @ 11:34
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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
18/01/07 @ 11:38
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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
18/01/07 @ 11:43
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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
18/01/07 @ 11:47
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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
18/01/07 @ 12:09
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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
18/01/07 @ 12:10
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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.
manlord
18/01/07 @ 12:28
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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 1 times, most recently on 18/01/07 @ 12:31
Rambaldi
18/01/07 @ 12:41
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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 1 times, most recently on 18/01/07 @ 12:42
manlord
18/01/07 @ 12:43
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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
18/01/07 @ 12:44
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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
18/01/07 @ 12:48
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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
18/01/07 @ 12:51
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@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
18/01/07 @ 12:55
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@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
18/01/07 @ 12:57
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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
18/01/07 @ 12:58
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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
18/01/07 @ 13:00
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@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
18/01/07 @ 13:16
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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
18/01/07 @ 13:40
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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 1 times, most recently on 18/01/07 @ 21:42
chupachups
18/01/07 @ 14:01
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"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
18/01/07 @ 14:01
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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
18/01/07 @ 14:36
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I bought an original Xbox. Haven't bought the 360.

Yet. As soon as Halo 3 gets released though............
LawyerOfTheTruth
18/01/07 @ 16:38
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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 2 times, most recently on 18/01/07 @ 16:43
cyber_nicco
18/01/07 @ 19:14
#44
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@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
18/01/07 @ 19:43
#45
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So another way of looking at this.. is that xbox owners were pissed off and disgruntled and so refuse to buy a 360....
smelly
18/01/07 @ 19:50
#46
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@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
18/01/07 @ 20:00
#47
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I smell something that gives off a scent similar to the fish smelt by a sweaty blindfolded lesbian in a fishmongers.
Mr_Brown
18/01/07 @ 20:24
#48
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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 1 times, most recently on 18/01/07 @ 20:25
smelly
18/01/07 @ 20:25
#49
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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
19/01/07 @ 03:49
#50
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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?

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