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The losses are due to the market strategy of selling consoles below cost in order to obtain market saturation and gain profits on software and peripherals that have a much higher profit margin. However, Microsoft expects the console will start making money in 2008. Through 2005, the Xbox gaming division had lost over $4 billion. However, despite these sales figures, Microsoft's gaming division is losing money.
The Xbox had sales of 528,000 units for September, while the Wii had sales of 501,000 units. On October 4, 2007, soon after the launch of Halo 3, Microsoft stated that Xbox 360 sales had more than doubled compared to the previous average.īased on figures from October 19, 2007, the Xbox 360 outsold the Wii for the month of September in North America, helped in part by the spike in sales seen after the launch of Halo 3, which sold 3.3 million copies in the U.S. However on September 12, 2007, it was reported by the Financial Times that the Xbox 360 had been surpassed by the Wii in terms of worldwide console sales. Being released one year ahead of its competitors, the Xbox 360 was the market leader throughout the first half of 2007. Microsoft later specified that goal and estimated shipments of 10 million units by the end of 2006.Ĭumulative sales from the system's launch until Jwere predicted to reach 12 million units, down from 13 to 15 million units estimated earlier. By year's end, Microsoft had shipped 1.4 million units, including 900,000 in North America, 500,000 in Europe, and 100,000 in Japan.Īt E3 in May 2006, Bill Gates announced that Microsoft would have a head start of 10 million units by the time Sony and Nintendo entered the market. Forty thousand units appeared on eBay during the initial week of release this was 10% of the total supply. Many potential customers were not able to purchase a console at launch. As a result, Microsoft was not able to supply enough systems to meet initial consumer demand in Europe or North America. The Xbox 360 began production only 69 days before launch. While Xbox 360 with a 60GB was $300 Xbox 360 sales figures Region
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4.2 Best selling Xbox 360 games in Japan through January 2009 (source)Īccording to iSupply, initial production costs for the premium Xbox 360 with a 120GB hard drive was $500 for the console plus another $55 for other accessories included in the package, such as controllers, power supplies and cables.
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