Microsoft's NPD Analysis

[bapenguin]

Just got this.

Xbox 360 Drives the Video Game Console Industry in 2007: NPD data released today confirms consumers spent more dollars on Xbox 360 in 2007, with more than $13.7 billion in total consumer spending. Xbox 360 won 2007 with $4.8 billion in total consumer spend compared to Wii with $3.5 billion and PlayStation 3 with $2.2 billion. This wraps up a historic year, with NPD reporting consumers have spent nearly 45 percent of total industry figures on Xbox 360.



Here is a quick snapshot of what is driving revenue for Xbox 360, based on the latest reports from NPD and Microsoft data:



· XBOX 360 WIDENS THE GAP OVER PS3 WITH CONSOLE SALES: According to NPD, Xbox 360 sold 1.3 million consoles in December alone, and has steadily widened the gap between Sony’s PlayStation 3 console sales. In December, NPD stated that Sony sold 798,000 PS3 hardware units. Since PS3’s launch in November 2006, Xbox 360 has outsold PS3 by nearly 2:1 on average, bringing a total U.S. Xbox 360 install base of 9.2 million consoles, compared to and installed base of 7.4 million Wii consoles and 3.3 million PS3 consoles.



· GAMES DRIVE INDUSTRY GROWTH: Xbox 360 robust games portfolio spans across the highest-ranked AAA titles to the largest collection of “Everyone” and “Teen” rated games. According to NPD, of the top 20 best-selling titles in 2007 for this generation, 11 were on Xbox 360; while only seven were sold on the Wii and two sold on the PS3.

o NPD reported that this holiday’s leading multiplatform blockbusters continue to sell better on Xbox 360:

§ “Call of Duty 4: Modern Warfare” for Xbox 360 was the leading game last month with 1.5 million copies sold, outselling the PS3 version nearly 3:1.

§ “Assassin’s Creed” for Xbox 360 was the fourth best selling title, having sold 894,000 units. It outsold the PS3 version more than 2:1.

§ “Guitar Hero III” outsold the PS3 nearly 2:1, having sold 625,000 copies.

§ “Rockband” continues to rock the charts, selling 463,000 units for the Xbox 360 platform, compared to 174,000 units for the PS3

o To date, 33 third party games on Xbox 360 hit the top 10 list across all consoles compared to five third party games on PS3, and four on Wii. These results confirm that third party partners create better games and reap more sales on Xbox 360 than any other platform.

o In its fourth month on the market, Halo 3 continued its strong performance and was the sixth best selling title in December, selling another 742,000 units. In 2007, NPD projects that Halo 3 has sold 4.8 million units in the U.S. since its launch in September.

o Xbox 360 continues to lead in number of games sold per console, setting another record with an attach rate of 7.0 games per console.

XBOX LIVE SETS NEW HEIGHTS: Xbox LIVE’s network is 10 million members strong and growing, achieving membership goals six months ahead of schedule. Only on Xbox LIVE can members experience the largest catalog of on-demand, high-definition content in the U.S., including movies and television shows from our most recent partners: Disney-ABC Television Group and MGM Studios.

We’re not slowing down in 2008. The next versions of powerhouse franchises like “Grand Theft Auto,” “Resident Evil” and sports games like “Madden”, “FIFA”, and “Pro Evolution Soccer” open up a new arena for game play on Xbox 360. This year we will make great strides toward improving our brand appeal to consumers interested in more physical game play. With titles like “Guitar Hero III: Legends of Rock,” “Rock Band” and “Scene It? Lights, Camera, Action” we’re creating interactive experiences on Xbox 360 for the entire family.

It was a good year for Microsoft in 2007....despite the Live and Red Ring issues.

[bKangy]

tl;dr version: MS sells a hell of a lot of software, pops a huge boner.

[Vandenh]

Well 2008 should be the year that they try to tackle a broader market. The hardcore are certainly eating up the 360. It will be a challenge against the mighty Wii ;)

[mightbe]

Ahh, who can resist e-peening?

Not the microsoft.

[Johan]

Xbox 360 won 2007 with $4.8 billion in total consumer spend compared to Wii with $3.5 billion and PlayStation 3 with $2.2 billion. This wraps up a historic year, with NPD reporting consumers have spent nearly 45 percent of total industry figures on Xbox 360.

Pretty damn impressive.

§ “Call of Duty 4: Modern Warfare” for Xbox 360 was the leading game last month with 1.5 million copies sold, outselling the PS3 version nearly 3:1.

§ “Assassin’s Creed” for Xbox 360 was the fourth best selling title, having sold 894,000 units. It outsold the PS3 version more than 2:1.

§ “Guitar Hero III” outsold the PS3 nearly 2:1, having sold 625,000 copies.

§ “Rockband” continues to rock the charts, selling 463,000 units for the Xbox 360 platform, compared to 174,000 units for the PS3

Also pretty damn impressive.

Who cares if titles are multiplatform if your hardware consistently sells two to three times as many of the software?

Wow...

[netcraazzy]

One statistic that is noticeably missing from that press release. Were more Wiis sold than 360s in 2007? My guess would be yes.

[Inverarity]

One statistic that is noticeably missing from that press release. Were more Wiis sold than 360s in 2007? My guess would be yes.
I expect that's why MS played up the consumer spending angle and the software sales. Even if the Wii beat them out in terms of consoles sold, they can still make a case to developers that releasing games for the 360 is an easy call, and they can still point out to investors that everyone involved with the 360 is pulling in boatloads of revenue.

[Vandenh]

One statistic that is noticeably missing from that press release. Were more Wiis sold than 360s in 2007? My guess would be yes.

Yes.. see the other NPD threads.

[baz]

I expect that's why MS played up the consumer spending angle and the software sales. Even if the Wii beat them out in terms of consoles sold, they can still make a case to developers that releasing games for the 360 is an easy call, and they can still point out to investors that everyone involved with the 360 is pulling in boatloads of revenue.

I reckon next year will be the really interesting year. The 360 and the Wii are pretty even now in terms of hardware. It will be easier to do a direct comparison of software sales.

[Telefrog]

Good stuff. They have lots to toot about. Nintendo will also crow.

I'm interested in seeing how Sony will spin the numbers. They're pretty abysmal for the PS3.

[Inverarity]

Good stuff. They have lots to toot about. Nintendo will also crow.
They deserve to. I was certainly completely wrong about how well the Wii would do, and I suspect that most of us on the 'hardcore' side of the fence felt the same way. (Hell, I'm still mystified- I own one and I like it, but I honestly don't get the runaway appeal.)

Anyway, if Nintendo continues to sell Wiis at the same crazy rate, the software sales are going to become very interesting to watch. They'll be in GBA/DS/PS2 territory, where the big installed base and long-tail economics can make successes out of niche games, risky games, stupid Elf Bowling-type games, etc. - even if those successes never once appear in a top-ten-sellers list. I hope that'll be the case; the alternative, where the Wii is dominated by Nintendo titles and retread minigame collections, and nothing else can get traction, is kind of depressing.

[OUX]

The only stat that devs care about is the attach rate.

[Telefrog]

They deserve to. I was certainly completely wrong about how well the Wii would do, and I suspect that most of us on the 'hardcore' side of the fence felt the same way. (Hell, I'm still mystified- I own one and I like it, but I honestly don't get the runaway appeal.)

Anyway, if Nintendo continues to sell Wiis at the same crazy rate, the software sales are going to become very interesting to watch. They'll be in GBA/DS/PS2 territory, where the big installed base and long-tail economics can make successes out of niche games, risky games, stupid Elf Bowling-type games, etc. - even if those successes never once appear in a top-ten-sellers list. I hope that'll be the case; the alternative, where the Wii is dominated by Nintendo titles and retread minigame collections, and nothing else can get traction, is kind of depressing.

I'm right there with you. I have a Wii, and for the life of me, beyond Super Mario Galaxy and Zelda, I've played almost nothing on it.

Unfortunately, it looks like that alternative scenario is the one coming to fruition.

[Nodus]

Considering the position they spent last gen in and the mockery the original xbox became in the shadow of the all consuming PS2, its no doubt MS is going to "stick it to em" with these press releases.

[KidCactus]

I'm interested in seeing how Sony will spin the numbers. They're pretty abysmal for the PS3.
They will play the "We did better than last year" card.

[bapenguin]

They will play the "We did better than last year" card.

You are....Correct! (http://www.evilavatar.com/forums/showthread.php?p=1209042#post1209042)

[KidCactus]

You are....Correct! (http://www.evilavatar.com/forums/showthread.php?p=1209042#post1209042)

Oooh, what's my prize? :cool:

[Baron Samedi]

I'm loving this new total revenue spin. Can't wait to see what happens in the new year!

[Telefrog]

I'm loving this new total revenue spin. Can't wait to see what happens in the new year!

Maybe we'll see consumer interest (http://www.next-gen.biz/index.php?option=com_content&task=view&id=3978&Itemid=2) numbers quoted? :D

[Mal.Reynolds]

o Xbox 360 continues to lead in number of games sold per console, setting another record with an attach rate of 7.0 games per console.


Fuck... Thats retarded

[king3567]

I have a 360 and a Wii. I love my 360(s) alot. The number of AAA software on it is just unbelievable. No other console came close last year. The DS lost alot of steam last year (in terms of good games), Wii's software from my point of view is abysmal (very few good games and they are all from Nintendo), PS3 gave up too early, and PS2 is waning. I honestly think the Wii is hurting the industry with its extremely low attatch rate. While I do think LIVE needs to be free, MS has been handling itself quite well despite its Hardware problems.

2008 will come down to PS3 and 360 in terms of great games. Wii has next to nothing again (besides Smash Bros.). This could be the greatest year of this generation for the PS3. The 360 has a pretty solid lineup however unless they announce Gears of War 2 (which would be an interesting grudge match for Resistance 2), I cannot help but feel they are playing it too safe.

So far I think 2008 will go PS3>360>Wii
but if MS announce Gears 2 then I would say PS3 and 360 are about even.

[Mal.Reynolds]

id Jade Empire 2 comes out and its 360 exclusive , Mass effect 2 and such other game from Bioware, the 360 could have a few more exclusives then most people think

[II ZoiD II]

Lets get a Bioshock 2 out there as well to help out the 360. I am excited to see what Sony does this year as I'll be picking one up in the next coming days. I know I've been saying this for a few months now but this time im serious(especially after reading about Resistance2 and all the features that come along for the ride, 60 player MP FTW). Now the decision is do I want a white PS3 or a black one? It would be nice to have the black 360 and the white PS3 just for shits!

[Mal.Reynolds]

Im picking one up in April (PS3) so doesnt matter whats exclusive

[Deadend]

o To date, 33 third party games on Xbox 360 hit the top 10 list across all consoles compared to five third party games on PS3, and four on Wii. These results confirm that third party partners create better games and reap more sales on Xbox 360 than any other platform.
That is the line MS wants everyone to read. They don't need to make tons of first party games, and potentially cut off revenue for 3rd parties. Now, if only they had translated the press release and sent it to Konami, Square, and various other Japanese studios.

[KingGorilla]

Microsoft is doing well in the US, Nintendo is kicking more global ass. They sold a game that was an instructional video on magic tricks for Christ sake. I also have to wonder which one sells more games online.

[TeeCakes]

That is the line MS wants everyone to read. They don't need to make tons of first party games, and potentially cut off revenue for 3rd parties. Now, if only they had translated the press release and sent it to Konami, Square, and various other Japanese studios.

Wow, that line kinda works for Sony, too. Rather sad/scary that with all the Wii's out there, third parties are still making their benjis with PS3/360.

But good luck getting uptight Japanese companies to side with ugly-ass American MS. Hell, I'd say their crappy hardware and straight refusal to cease swindling their customers with bad service killed any illusions of integrity they might've built up in Japan. Sony's easily got the better product, that is if you're judging products wholly on their own merits (and not N. American software/hardware sales alone.)

[DarkDaY]

Wow, that line kinda works for Sony, too. Rather sad/scary that with all the Wii's out there, third parties are still making their benjis with PS3/360.

But good luck getting uptight Japanese companies to side with ugly-ass American MS. Hell, I'd say their crappy hardware and straight refusal to cease swindling their customers with bad service killed any illusions of integrity they might've built up in Japan. Sony's easily got the better product, that is if you're judging products wholly on their own merits (and not N. American software/hardware sales alone.)

here he goes again.

[Micasa]

here he goes again.

No kidding. How would Sony possibly spin that as a positive - ignoring the 360 entirely? If they do a 5:4 comparison to the Wii instead of 33:5:4, they have to mention that the Wii is crushing them in hardware sales - the only reason a one-game margin would be at all a feat worth mentioning.

[Talon-]

That 7 games per console attach rate is a bit silly. I find that really hard to believe.

I wonder if that's effected by rental services' purchases (Gamefly, Blockbuster).

[oldjadedgamer]

Wow, that line kinda works for Sony, too. Rather sad/scary that with all the Wii's out there, third parties are still making their benjis with PS3/360.

But good luck getting uptight Japanese companies to side with ugly-ass American MS. Hell, I'd say their crappy hardware and straight refusal to cease swindling their customers with bad service killed any illusions of integrity they might've built up in Japan. Sony's easily got the better product, that is if you're judging products wholly on their own merits (and not N. American software/hardware sales alone.)

So what games from Japanese game companies have lit up the sales charts this last year? Looking at the top 10 list of the best selling games from last year then looking at the PS3 and 360 games in that list, not one single Japanese made game made the top 10 list. Shoot, even the PS2 games on the top 10 list of 2007 were made by American developers.

Also, you really think that DMC4... a traditional Playstation franchise will sell better on PS3 then it will on the 360? I would love to put money down on that one.

Considering that the PS3 took 8 months to sell the same amount of hardware in Japan that the PS2 did in 48 hours on sale, I really doubt these "uptight Japanese companies" are really looking at the PS3 to be the savior of their game sales.

Look at Capcom as a good example of a smart Japanese game company this gen and their wise decisions have brought in lots of cash for the company to continue to make great games for us to enjoy.

[Rune_74]

Wow, that line kinda works for Sony, too. Rather sad/scary that with all the Wii's out there, third parties are still making their benjis with PS3/360.

But good luck getting uptight Japanese companies to side with ugly-ass American MS. Hell, I'd say their crappy hardware and straight refusal to cease swindling their customers with bad service killed any illusions of integrity they might've built up in Japan. Sony's easily got the better product, that is if you're judging products wholly on their own merits (and not N. American software/hardware sales alone.)


There seriously has to be something wrong with you.....move out of your momma's basement boy.

[Tel Prydain]

That 7 games per console attach rate is a bit silly. I find that really hard to believe.

I wonder if that's effected by rental services' purchases (Gamefly, Blockbuster).
If anything rental services' purchases mean that there are a lot of games to rent and, therefore, less of a reason to buy. It should be pulling it down, not putting it up!

There are two reasons for the big attach rate:
1) Hardcore gamers have adopted the 360 as the console of choice (so far) this gen. The Wii has a casual focus, and the PS3 took too long to get its ass into gear. And at the end of the day, hardcore gamers are the ones who buy games.
Sure, the casual crowd may buy a lot of one specific game… that’s why licensed games sell well. But a casual gamer buys ONLY that one specific game they brought the console for (GTA, FF??, MGS, etc) and maybe a couple extra. To the casual crowd, a console is just a time-waster.... a toy.
I could also point out a large number of people who brought their PS2 as a DVD player and their PS3 as a Blu-Ray player – obviously, they will also drag down the overall attach rate. The 360 has (so far) avoided the casual market and, as such, the casual users are not dragging down the overall attach rate.
Conversely hardcore gamers buys a range of games – that’s driving the attach rate up. The hardcore gamers are the hobbyists who will put time and money into their favorate pass-time. I own a good 25 or so games myself.
By catering to the hardcore gamers, Microsoft have guaranteed that the group of people in their user base are the same people who will splash their cash on games.

2) DLC. DLC is a two-edged sword. I like the fact that if I hold on to a game I enjoy, the developers can then treat me to more of the same. For example – Oblivion’s constant DLC kept me coming back to the game, even months later. Renters (or people who sell their game 2nd hand) don’t get to experience the same content – and that means anyone who wants the full experience needs to hold on to the game. This also cuts down on the 2nd hand games available, forcing people to buy new instead.
Also, once you have brought the DLC, it’s non-transferable. I kept GRAW longer then I would have, because I’d brought the DLC, and couldn’t handle the idea of owning content for a game I no longer had. In general, once you have brought DLC for a title, you are fairly unlikely to sell it on. Again also cutting down on the 2nd hand games available, forcing people to buy new instead.

Between the snagging the hardcore gamers and the 'trap' of DLC, Microsoft have made sure that they will have an attach rate others will drool over.