Skip to main content

Xbox 360 Rollout To Be Slow but Steady

How exactly do you launch a new gaming console? At Microsoft, the plan seems to involve starting slow, then ramping up supply as the system gains momentum.

According to data in Microsoft’s earnings report for its first fiscal quarter of 2006 the company estimates shipping between 4.5 and 5.5 million Xbox 360 consoles by June 2006, but isn’t trying to make sales of the new gaming console to take off like a rocket during its first months. Rather, analysts estimate the company will ship up to 2 million consoles at launch, but then slowly increase supply of the Xbox 360 as more games become available and competing consoles from Sony and Nintendo come to market.

Why? Launching in the U.S. on November 22, Microsoft’s Xbox 360 will be the first of a new generation of gaming consoles, and it’s even making it to retailers in time to participate in consumers’ end-of-year holiday purchasing. Wouldn’t it make sense for Microsoft to sell as many consoles as possible while the Xbox 360 is the only game in town?

Not necessarily: the economics of video game consoles aren’t so straightforward. Historically, most video game console manufacturers lose money on every unit sold, making up the shortfall in game sales, royalties, and (more recently) subscription fees. A manufacturer’s loss-per-console is greatest when new systems are introduced and hardware costs at their highest. As more manufacturing capacity comes online and hardware costs decline, the makers lose less money on each console, and may eventually begin making a profit on the systems.

Microsoft’s current Xbox system has always had a negative gross margin, meaning the Redmond company theoretically loses money on every sale. That loss will widen with the Xbox 360, which has higher manufacturing, hardware, and marketing costs, so Microsoft can reduce its potential losses on console sales by avoiding an initial spike in Xbox 360 sales.

If Microsoft can defer sales of Xbox 360 consoles to the first half of 2006, it may be able to reap two fiscal rewards: one through improved (though still negative) margins on each Xbox 360 console as additional manufacturing capacity from Celestica, and another through increased game sales and royalties, as more Xbox 360 game titles ship from both Microsoft’s in-house game development unit and developers like Electronic Arts and Take-Two Interactive. (And the third installment of Microsoft’s Halo franchise

Editors' Recommendations

Geoff Duncan
Former Digital Trends Contributor
Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…
The most common Xbox Series S problems and how to fix them
Xbox Series S placed on a white table with the controller just in front of it

There haven't been many complaints about Xbox Series S since it launched in 2020. Serving as the more affordable sibling of the premium Xbox Series X, it plays all the same games yet works at a lower resolution – allowing it to carry a nice price tag of $250. Users have reported a few common issues with Xbox Series S over the years, however, which run the gamut from Quick Resume crashing to HDMI-CEC not registering a connection.

Running into problems with your Xbox Series S? Here's a look at the eight most common Xbox Series S problems, along with how to fix them. If you can't fix the problem on your own, things might be more serious than expected. In that case, be sure to contact Microsoft for advanced troubleshooting or to get your console replaced.
Get in touch with Microsoft
Microsoft offers several support routes, so if you don't find a solution in this guide, make sure to reach out. If you encounter an Xbox Series S problem that needs our attention, make sure to tag us on X @DigitalTrends (loop in @XboxSupport, too). Otherwise, you can contact Microsoft using the options below.

Read more
Sims 4 cheats: all cheat codes for PC, Xbox, PS4, PS5, and more
A shot of Sims dressed in Western-style clothing, performing a line dance. One Sim in a red shirt is sitting down at a piano, playing music.

The Sims 4 is proving to be quite the popular life simulator, and a great addition to the long-running Sims series. But when you’re always running out of money, or can’t get that item you’ve been dying to utilize, inputting a cheat code or two can make things a little easier, and much more fun (especially if you’ve been struggling). Fortunately, EA — the game’s developer — realizes how fun using cheat codes can be, and has triumphantly stood behind these Sims 4 modifications. 

Whether you’re playing the game on a PC, PlayStation 5, or other console, we’ve rounded up all the cheats you’ll need to know for The Sims 4. We’ll be sure to update this post as new codes are added. 
How to enable cheats in The Sims 4

Read more
GTA 5 cheats: codes and phone numbers PS4, PS5, Xbox, and PC
The main characters of Grand Theft Auto V stand side-by-side.

A slam-dunk of a game for the talented developers at Rockstar, Grand Theft Auto V has been out for several years now, but it’s still an extremely popular title. We’re also guessing there’s some renewed interest in the game because the world knows we’re getting a Grand Theft Auto VI in the somewhat-near future. If you’ve ever played a GTA game, you’ll know the going can get a little tough from time to time. This is why it’s nice to live in a world with cheat codes. 

Whether you just want to have a ton of fun with unlimited health and ammunition, or you’re seriously struggling with a certain section of the game, we’ve rounded up all the cheat codes you’ll need to know for GTA V, for platforms including PS4, PS5, Xbox, and PC.
How to use GTA 5 cheats
There are a few ways to enter GTA 5 cheat codes. The first and easiest is to use your cellphone. You can open your cellphone by pressing Up on the D-pad. From there, enter the corresponding number, and the cheat will fire. You can also classically input cheats by following a specific button combination. The combinations are the same across PlayStation and Xbox, but we've split them up to account for their different button-naming conventions, so it should feel more natural reading and entering them.
GTA 5 character cheats
Max Health and Armor

Read more