December 7, 2006 9:24 AM PST

Microsoft to ship over 10 million Xbox 360s by year's end

Software giant says it expects global shipments to retailers to hit that mark.

The story "Microsoft to ship over 10 million Xbox 360s by year's end" published December 7, 2006 at 9:24 AM is no longer available on CNET News.

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360 really is in a stronger position than xbox
The Xbox launch price was $300 which is in the ballpark of where the 360 is.

MS was never ever able to bring manufacturing costs down enough to make money on the Xbox console, where they already make ~$75/each for the premium 360.

The first controller for the original Xbox was bulky and people hated it, the 360 controller is smaller and more comfortable.

With the PS2, you could still buy cheap PS1 games for it. The Xbox did not have this luxury, but the 360 does (Xbox games look better on the 360).

Although the ps3 was released a year later at $200 more than the 360, the system specs and game graphics are mostly about the same.

Most of the early bugs in 360 have been corrected at this point and unlike wii and PS3 you can get your hands on one before Christmas.

The Blu-Ray decision is a double edged sword for Sony. They lose $300 a console to sell them when most people don't need a Blu-Ray drive today.

Since MS already makes $75/each on their premium (and most popular) console, by the time Sony hits they volume of shipment they are looking for with the PS3 MS could afford to lower the pricing on their consoles squeezing Sony.

In 2-3 years when people may actually need a HD-DVD player, they can buy the add-on (which can also connect to a PC). If Blu-Ray wins the format war, they can just ship a Blu-Ray or even dual HD-DVD/Blu-Ray add on for the 360.

Lastly, the 360 will have a longer product cycle than the Xbox.

I am not saying the 360 will keep its dominant market share, but I am saying that it will hold more market share than the original Xbox and that unlike the first version, will be a profitable product solidifying Microsoft's entry into the console arena.
Posted by Dachi (797 comments )
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when is the price drop?
that's when i'll by 360.
Posted by baswwe (299 comments )
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