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May 14, 2008 1:00 PM PDT

Xbox 360 hits 10 million sold in U.S.

by Daniel Terdiman
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Microsoft said on Wednesday that its Xbox 360 has become the first next-generation video game console to hit 10 million units sold in the United States.

Further, said Aaron Greenberg, director of product management for Xbox 360 and Xbox Live, that milestone has historically been reached by the eventual best-seller of each previous console generation, a fact that Microsoft will certainly be using to bolster suggestions that the Xbox 360 will eventually prevail sales-wise over Nintendo's Wii and Sony's PlayStation 3.

Of course, Sony has been the winner of the two previous generations, with the original PlayStation and PlayStation 2 far outselling the competition.

In the U.S., according to NPD Group analyst Anita Frazier--as of the end of March, Microsoft's rivals, Nintendo, and Sony had sold 8.8 million Wiis and 4.1 million PlayStation 3's in the United States, respectively.

All told, Microsoft has sold 19 million Xboxes worldwide, Greenberg said.

In addition, he reported that globally, Microsoft's Xbox Live service has reached 12 million total users, more than doubling the 6 million it reported last July.

"Our goal was to hit 10 million (Xbox Live users) in a year's time," Greenberg said, "and we've doubled it in less time. The majority of Xbox owners on a global basis are connecting to Xbox Live."

Another milestone the Xbox recently reached, Greenberg said, was that with more than 1 million copies of Rockstar Games' monster hit, Grand Theft Auto IV, having already sold on Xbox 360, the console has now reached 16 different titles with 1 million sales or more in the U.S.

By comparison, he pointed out, that's twice the number of million-plus titles that have sold for the Wii in the U.S. The PlayStation 3 has had just two, he said.

While the 10 million total Xboxes sold in the United States is certainly notable, it also must be noted that the console had a full year's head start on its competition.

Greenberg acknowledged that that means it's hard to compare sales numbers in an apples-to-apples fashion, but added that he thinks the head start gives Microsoft advantages that Sony and Nintendo will never be able to catch up to.

"I don't think you can underestimate the benefit of the year head start," he said. "We have a larger library, a larger online community. There's benefits to that acceleration."

Additionally, because the Xbox has been on the market a year longer, Microsoft has been able to reduce the costs of production sooner than its rivals, Greenberg said.

"It's hard to play catch-up," he said.

More recently, Greenberg explained, the huge success of GTA IV has been a boon to the Xbox. He explained that Microsoft's initial data suggested that in the first week the game was on the market, fully 40 percent of Xboxes sold at retail were bought by people who also purchased GTA IV.

That certainly seems like good news for Microsoft and backs up suggestions by industry analysts who predicted that GTA IV would drive a significant number of sales of the Xbox 360 and the PlayStation 3, the two consoles the game was released on.

On Thursday, NPD will release its April sales figures for the U.S. video game industry.

Note: On June 10, Geek Gestalt hits the highways for Road Trip 2008. I'll start in Orlando, Fla., and visit many of the South's most interesting destinations. Stay tuned, and be sure to keep up, both now and during the trip, with what I'm doing on Twitter.

Originally posted at Gaming and Culture
Daniel Terdiman is a staff writer at CNET News covering games, Net culture, and everything in between. E-mail Daniel.
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by Spartan_458 May 14, 2008 1:14 PM PDT
Well, if you remember correctly, both the PlayStation and PS2 had about a 1-year head start on the competition as well, so there can be some credibility to that fact. And even if the 360 doesn't win in console sales, it'll win in total revenue. Let's face it, the 360 is selling way more games than the Wii and PS3 combined.
Reply to this comment
by The_Decider May 19, 2008 2:40 PM PDT
Too bad the XBOX project hasn't seen its first nickle of profit quit yet. Barring another $1 billion blunder this summer it maight happen soon. How many years did it take?

Don't forget that MS commonly fudges numbers and channel stuffs the hell out of its garbage to bloat numbers.
by kylebuttermore May 14, 2008 1:25 PM PDT
it should be more like 5 million since the majority of 360 users have had to get a new one because of rrod!
Reply to this comment
by Penguinisto May 14, 2008 1:39 PM PDT
Err, y'all know that blatant channel-stuffing on Microsoft's part doesn't count, right? Also, the Wii started a year later than the xbox 360, yet it sits at 12.something million US sales.
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by robvme July 13, 2008 7:03 PM PDT
Channel stuffing is illegal and it is against Microsoft policy to do so. If you look at the sheer number of Xbox Live Subscriptions, about 12 million, it is not hard to fathom that there are 10million actual consoles in the hands of users. Furthermore the statisitic is derived from indidividual registrations of Xbox 360 consoles, not how many have been shipped. I see this post about channel stuffing all the time and it is annoying especially when there is no data to back it up. Some poeple just can't stand Microsoft no matter what and will slander and spread lies or twist facts to get their own biased opinion across. Why not just admit that there are 3 great platforms out there and there is room for all? I come from a generation that doesn't wait for the one and only best console, but one that buys multiple consoles. I have a Wii, 2 Xbox 360's and a Playstation, Playstation 2, and Playstation 3. I like all of them for different reasons, but I play my Xbox 360 the most as it has better games and better online experience in my single and anecdotal personal opinion.
by fredtheviking May 14, 2008 1:42 PM PDT
I am not really that impressed. XBOX360 is junk hardware, but it does have games (so I might get anyway). Given the debacle with it's hardware (having the largest faliure rate of any console in the history of video games), I don't think Microsoft has a lot to proud of. I think PS3 is far from dead and the WII has innovative console. It still be too early to declare a winner of this console war.
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by Vegaman_Dan May 14, 2008 9:15 PM PDT
The XBOX360 was developed and based upon the Macintosh G5 hardware. Interesting.
by Simplicius May 14, 2008 1:45 PM PDT
it is worth noting that, in spite of all the hype, Microsoft is still losing money on the Xbox. Those are expensive toys to develop
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by DrtyDogg May 15, 2008 3:20 AM PDT
Funny, as they seem to have been showing a profit for a while now.
by make_or_break May 15, 2008 12:53 PM PDT
Not anymore. For a while now MSFT has actually been making a profit on each 360 console sold. Makes sense, since the actual component costs can only go down over time in this industry. Even their gaming division as a whole is now making money...finally...and they should keep doing so as long as 360 failures start slowing down with the influx of later, improved production runs.
by j_a_s_p_e_r May 18, 2008 7:02 PM PDT
You are mistaken. The console has been profitable by itself for some time now. I believe the last figure I saw was $80 per console by itself. All consoles start off with a loss that they hope will be made up with game sales and mass production.
by The_Decider May 19, 2008 2:42 PM PDT
Yeah right. The XBOX was in the red a year ago before they had to sink another billion to cover their incompetence.

Creative accounting notwithstanding, the xbox is a money pit.
by robvme July 13, 2008 7:07 PM PDT
Umm...I think you are mistaken. the Xbox console does not lose anything on the manufacture anymore. That ended in the second year when manufacturing was moved out of Brazil. However, it has always been a razor vs razor blades marketing strategy and the fact that Xbox has had 12 $1 million titles so far helps that fact. Sony, by comparison has had only 2. So, even if I lost $10 for every console I would hazard to guess that that is being made up handily by the sale of games and online subscriptions. So not sure what your point is. Sony loses a bundle on every console and has problems resourcing parts, Wii has its costs associated with the cost of the console, and unfortunately is not selling many great games. Fact is, the developers are ultimately going to determine the success of a console.
by oldmanangry May 14, 2008 1:46 PM PDT
I don't own a console and don't care for them, but is this supposed to be a news report or stenography for Microsoft? How can anyone mention the number of xbox360 sales without reporting the failure rates of the units? Pretty weak "reporting" if you ask me.
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by YankeePoodle May 14, 2008 3:50 PM PDT
I love the Microsoft-hate Zombies, crawling uncomfortably because any thing positive about Microsoft is going to draw the wrath of this asinine crowd.
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by sanenazok May 14, 2008 5:31 PM PDT
Welcome to the eco system. At least with the new comment posting system it'll be harder to get into stupid flame wars because the "responses" are hidden on first look and people won't always bother to look deeper.
by The_Decider May 19, 2008 2:43 PM PDT
Is this good news? Not really.

MS is a loser, end of story. Deal with it, or ignore it, but you can't change it.
by JuggerNaut May 14, 2008 6:49 PM PDT
That's nothing to really brag about. Though revenue is great, profit is even greater and I think only Nintendo actually makes (direct) profit from each Wii sold; so selling games is a plus for Nintendo no matter how you slice it. But Microsoft and Sony are forced to rely on royalties made from game sales to profit (or break even)!

Nintendo is in the best position for this generation of console wars :-)
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by robvme July 13, 2008 7:08 PM PDT
Yeah, problem is Wii only experiences 1.5 games attache rate. Compare that with 5 for Xbox.
by swiggins May 14, 2008 7:01 PM PDT
I have never had a problem with my 360, I use it every day, on the other hand, my launch 60GB ps3 is plagued with problems, as are thousands of others complaining on the official PS3 forums, check it out for yourself, SOny is fudging on their failure percentage and it WILL catch up to them. One of the reasons it's stayed buried for so long is that PS3 fanboys would rather chew and swallow glass than ever admit that they sent their console in for repairs.
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by The_Decider May 19, 2008 2:44 PM PDT
Wow, so since you didn't have a problem the thousands that did and cost MS over a billion dollars isn't important?

Three cheers for norrow scoped empirical "evidence'.
by Riquez-001 May 14, 2008 9:38 PM PDT
I don't think there will be a clear cut winner in the "Console War" this time round. Sure I can accept that xBox360 might be the most popular, but the other consoles will still enjoy a healthy life.
Unlike previous console wars, such as PS1 vs Saturn vs N64 where the competition was crushed into obscurity, now i think all 3 will have a place.
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by robvme July 13, 2008 7:13 PM PDT
Thank you! I am so tired of the fanboys for this or that company. If it is good enough, there will be room for multiple consoles. With a good tv and AV Receiver it is no problem to have more than one and cheer the success of all 3 of these companies. I mean, unless you are a major stock holder, why would any one give a hoot about how well Sony is doing agains Microsoft, or how well Microsoft is doing against Nintendo? Really, I find myself rooting for MS, because of the three, it is a US based company still kicking Asia's butt. But that's my patriotic side coming thru. Thanks for your post, I am glad to see someone is using their head.
by DouglasBubbletrousers May 15, 2008 4:28 AM PDT
I just sent off my 360 in for the 3rd time yesterday for RROD. Granted, this unit lasted me 2yrs which is better than my launch unit (1 month) and 2nd one (about 3 months). Still, I have no desire whatsoever to get a PS3. Im perfectly happy with the 360, even if it does have hardware issues. At least its still under warranty and they replace for free. And I am one of those MS haters when it comes to the home computer, Im a Mac user.
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by will2348 May 15, 2008 9:10 AM PDT
i own a Sony ps3 and would have to agree it has its problems but alot of these problems aren't actually to do with the ps3 for example alot of problems with HDMI cables, games have been scripted wrong causing ps3 hardware to do goodness knows what and the reason behind it is the ps3 is the most complicated gaming console and xbox may have sold more but the it isn't over xbox has had a year start and is cheaper. Technically the only problem with the ps3 is price. All my mates have xbox 360s and they all think it's great. Get dem to play on a ps3 with a decent hdtv there soon change there mind and say that they always thought the ps3 is better they just cannot afford it and of course even if you can afford it hdmi cables, games, blu-ray doesn't all come cheap. The only problem is that the ps3 is expensive, not enough games and for most gaming companies the way to program ps3 games is just to complicated they don't know how far they can push the console. There ain't one game that pushes the ps3 right to it's limit. I can guarantee that within a year there will be more games on the ps3 and the ps3 will be cheaper which will mean most people have a ps3 and a wii and the good old xbox 360 will end up in the cupboard along with most peoples ps3. The ps3 cannot lose it will be the next best gaming console i mean sony are experts in this area. They are gonna smash microsoft so watch out!
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by celticbrewer May 15, 2008 9:46 AM PDT
The Wii still leads in sales world-wide, but the PS3 exceeded Xbox 360 sales in the critical U.S. market during the first three months of the year, helped by an improved selection of games, a 20% price cut last fall and the lure of models with built-in Blu-ray DVD players. Sony has also continued beating Microsoft in console sales in Europe and Japan.

Xbox is old news. And how many of those 10M Xbox360 are still running? My friend is on his third due to hardware failures.
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by strikepackagebravo May 15, 2008 10:04 AM PDT
It always amazes me to see how many people come running to trash the 360 when a positive 360 story comes out, and how many people come to defend the PS3 when a negative PS3 story drops.

Anyone who denies that PS3 fanboys are more aggressive and problematic, is just kidding themselves.
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by chronoex May 15, 2008 10:30 AM PDT
Congratulations to Microsoft for finally beating Sony at it's own game. It's healthy competition like this that spurs innovation. Still, I have trouble seeing the Xbox 360 besting the Wii in global sales at any time. There's simply not enough universal interest in the console. It's still a bit too hardcore for the average living room, and it's bestselling titles reflect that pretty clearly, whereas the bestseller list for the Wii is a good mix of casual and hardcore titles.
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by halamadrid May 15, 2008 1:52 PM PDT
I don't think that playing with the numbers helps M$. While M$ has managed to sell 19M units worldwide with over a year's head start, Sony has managed to sell 13M units worldwide in one year. Now, I'm not a math expert, but it seems like Sony is indeed selling PS3s at a faster rate worldwide. Consider also that sales in Europe, Australia, and Canada are more beneficial to Sony's bottom line b/c of the decline of the American Peso....err....dollar, and U.S. sales are really not that impressive. One additional point is that Sony also makes revenues off licensing fees tied to Blu-ray movie releases and not just games, so who's coming out on top in the end?
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by shadymoin May 18, 2008 6:07 AM PDT
Is there a deadline or something? I don't understand why there is this fuss or desperation on Microsoft's part to declare the Xbox as being the winner or something. Its clear it has had a head start and the only reason why people are buying the xbox is simply due to the availability of games on it.

In comparison what the PS3 has gone through and is on the comeback is pretty impressive, what the wii has done is beyond belief! This is desperate marketing from the xbox side of things. The real test for the xbox is if it can maintain the consumers when the ps3 has as many titles available to it, if so then Microsoft can celebrate, but otherwise if there is that deadline we all need to know about now would be the time to tell us.
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