Xbox sales shrouded in secrecy and concern

Was the console market a market too far for Gates and Co...?

By Will Sturgeon, 10 April 2002 07:25

NEWS Microsoft is remaining tight-lipped over the sales of its Xbox console amid speculation that an initial boom in the US has not materialised in Europe and Japan. Since November the Xbox, launched to compete with Sony's Playstation 2, has been performing well in its domestic market and the Microsoft marketing machine has been running high-profile campaigns around the world, but all that has failed to convince Goldman Sachs not to cut its estimated sales. Goldman Sachs predicts Microsoft will have sold 900,000 units during the quarter ending March - including 200,000 in Europe - but this figure is down by 500,000 on earlier estimates. Microsoft is undeterred however, claiming a number of victories over Sony - such as the number of games per unit sold being higher for the Xbox than Playstation 2 during Sony's first quarter after launching. And as far as Microsoft is concerned the number of games sold per unit is a key statistic. Despite cutting estimates for boxes shifted Goldman Sachs did not cut Microsoft's estimated profits from the Xbox. Currently the Seattle giant is selling the units at a loss anyway - solely making money from the number of games sold.

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