Microsoft Touts Xbox 360 Sales, Ignores Wii

By Geoff Duncan May 15, 2008

Microsoft Touts Xbox 360 Sales, Ignores Wii

Microsoft is declaring a pre-emptive—and many would say hollow—victory in the next-generation video game console wars, announcing that the Xbox 360 is the first so-called next-generation console to have sold 10 million units in the United States. “History has shown us that the first company to reach 10 million in console sales wins the generation battle,” said Microsoft senior VP Don Mattrick. “We are uniquely positioned to set a new benchmark for the industry.”

According to Microsoft, the worldwide installed base for the Xbox 360 now totals 19 million units, and its Xbox Live online service boasts over 12 million members.

The Xbox 360 was launched in November 2005, a full year ahead of either the Sony PlayStation 3 and the Nintendo Wii, giving the console a significant head start in the marketplace. Nonetheless, Microsoft’s claims to have reached the finish line in the next-generation console race only make sense if one removes the market leader—the Nintendo Wii—from the competition. To date, the Wii has sold 8.8 million units in the United States and its sales rates show no signs of peaking: all indications are that the console will hit the 10 million sales mark soon. And the Wii has already outsold the Xbox 360 worldwide, with almost 25.5 million units already in customers’ hands. And that’s without a year’s head start to build up market momentum.

Recent sales figures also indicate it may be too soon to count Sony’s PlayStation 3 out of the picture. Although sales of the Blu-ray equipped consoles were initially hampered by high prices, lack of compelling titles, and limitations on backward compatibility, sales have recently begun to pick up, reaching a total of 12.85 million units worldwide, with Sony projecting another 10 million in sales for the current fiscal year.

Microsoft has historically tried to discount sales of the Wii by talking about “high definition” video game consoles, meaning so far as the company is concerned, it’s only competing with the PlayStation 3. Nonetheless, with a strong online component, innovative games, a low price tag, and oodles of sales, there’s little denying the Nintendo Wii is a major player in the game console market; by ignoring it, Microsoft’s self-congratulations come across as narcissistic and myopic.

Editors' Recommendations

Topics

Nintendo

Former Digital Trends Contributor

Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…

Gaming

Microsoft will shut down the Xbox 360 Store next year

An image of backward compatible Xbox 360 games.

Microsoft announced today that it plans to shut down the Xbox 360 in 2024, an extremely disappointing move that's bad for game preservation.

The Xbox 360 Store, also known as the Xbox Live Marketplace, has been present on Microsoft's second game console in some form ever since it launched in 2005. In recent years, storefront shut down for older systems have become more common. The 3DS and Wii U eShops went offline in March despite player anger, while Sony planned to shut down the PS3, PSP, and PS Vita storefronts in 2021 before reversing that decision because of the backlash. Regardless, the loss of any storefront is a dour move for the video game industry, as some games are exclusively available to them and will be lost forever when the store goes offline.

Gaming

Microsoft beat the FTC. Here’s what the controversial court ruling means for Xbox

You’ve probably heard that the Federal Trade Commission (FTC) lost its case against Microsoft after an exciting and revelatory trial. On Tuesday, Judge Jacqueline Scott Corley denied FTC's motion for a preliminary injunction to block Microsoft’s acquisition of Activision Blizzard before its potential completion by July 18. Ultimately, Corley did not believe that Microsoft owning Call of Duty would “substantially lessen competition” in the game industry. It was major win for Microsoft after months of regulatory hoops and roadblocks, but the FTC quickly moved to appeal the decision. This all raises an important question: What’s next?

Over the next week, Microsoft, Activision Blizzard, and the FTC will determine the fate of the gaming companies involved in this acquisition and set a precedent for the future of the game industry. On top of that, Microsoft still has to deal with the next moves made by the U.K.'s Competition and Markets Authority (CMA), which wants to block the acquisition due to its impact on cloud gaming. Following the release of Judge Corley’s Preliminary Injunction Opinion, I spoke to two analysts and a lawyer with knowledge of the video game industry to better understand what lies ahead for Microsoft and Activision, the FTC, and the CMA. The battle isn't quite over yet, even if the end is finally on the horizon.
What’s next for Microsoft and Activision Blizzard
Currently, Microsoft and Activision are in a solid position, as a Judge has ruled that Microsoft is unlikely to pull Call of Duty from PlayStation or lessen competition in the game console, cloud gaming, or game subscription markets by acquiring Activision Blizzard. There’s a temporary restraining order in place until July 14, which the FTC hopes to successfully appeal during. As soon as that order is up, though, Microsoft and Activision Blizzard have until July 18 to complete the acquisition.

Gaming

Microsoft wins FTC case, removing Xbox’s biggest Activision Blizzard acquisition hurdle

Characters shooting in Call of Duty: Modern Warfare 2.

Following a multi-week court case, Microsoft has won its battle with the Federal Trade Commission regarding its proposed Activision Blizzard acquisition. The ruling is a major win for Microsoft's troubled deal, clearing the biggest hurdle it faced.

Last January, Microsoft announced its intention to acquire Activision Blizzard for $69 billion. The blockbuster announcement immediately raised antitrust concerns, which resulted in the FTC filing a legal challenge in December 2022. Microsoft has not been able to proceed with the acquisition since then, as its faced similar scrutiny in the U.K.