With 11.6 million Xbox 360s already sold, is it any surprise that Microsoft’s game console is selling less than it was last year? A new report from Information Week casts a bad light on the Microsoft console, claiming that the 61% drop in sales is due to mounting problems with the machine.Now, there are clearly some problems with the Xbox 360, but Microsoft has made efforts to fix this by extending the warranty for the console to three years. There have also been two class action lawsuits filed against the company claiming that the system damages games by scratching them.
Can Sony’s temporary price cut on the PS3, cut further into the Xbox sales numbers?
Personally, I think the Xbox 360 is going to continue to see a decline in sales, simply because the gaming market isn’t THAT big. Yes, it seems huge…but isn’t 11.6 million consoles sold a HUGE number? Especially when you look at the price of the systems. The current generation of game systems are incredibly expensive, and to fully enjoy everything they have to offer you have to have HD TV.
Not every household has HD, and even then, not every household can fork over the cash for an Xbox 360 or Playstation 3.
We’re not seeing the same problem with Nintendo, because they have chosen to go a different route, and produce a lower cost system that comes packaged with games. Their system appeals to a much more casual gaming market, but the Sony and Microsoft systems are still catering to the “hardcore” niche.
Now, don’t get me wrong, I don’t want to see casual gaming replace Gears of War or anything, I just don’t think that Microsoft’s sales are slowing down because of bad PR…I think they’re slowing down because there are only SO MANY people out there that want them.