ltheghost
Payin Debts.... N40
http://www.forbes.com/sites/markrog...evices-continue-to-struggle/?partner=yahootix
Microsoft’s mixed results have largely pleased Wall Street. But the good news on cloud services and stabilization in the PC market can’t mask an ugly truth for the software giant: All of its hardware divisions are performing somewhere between terrible and absolutely dreadful. The worst among them, though, was the Xbox division where the rapid deterioration of Microsoft’s console business may lead to another round of calls to spin the division off.
Things aren’t a lot better for Surface, which is at best treading water, or the Lumia smartphone group, which performed the best of the three albeit not by much. Here’s a look at how Xbox, Surface and Lumia are faring:
This is the part about Xbox One.
As Erik Kain reported here last week, the U.S. retail numbers for Xbox One don’t look that awful. The PS4 beat it handily at retail in June, by 36%, but with nearly 197,000 units sold, Xbox One seems to have benefited from its recent price cut.
That said, Microsoft can’t hide the fact that sales have been so tepid in 2014, it’s been working through channel inventory and manufacturing barely any new consoles. Consider these stats: In the prior quarter, Microsoft reported 2 million console sales of which 1.2 million were the Xbox One. That means the company was moving about 800,000 Xbox 360s just three months ago.
If we assume that the 360 is selling similarly at this point, then this quarter’s 1.1 million consoles likely consisted of just 300,000 Xbox Ones. To get a sense of how terrible that is, it’s as bad as Nintendo’s Wii U results for the quarter that ended in May.
Now, before anyone asks: How can Microsoft sell nearly 200,000 Xbox Ones in the U.S. in June alone if it shipped 300,000 worldwide for the entire quarter? The answer is that the channel has been sitting on too many consoles for and it’s now working through that backlog.
Going forward, that almost certainly means more Xbox sales, but unless Microsoft cuts into Sony’s substantial lead sometime soon, it risks becoming the also-ran of this generation. And it doesn’t help that despite saying nice things about Xbox, new CEO Satya Nadella doesn’t seem especially committed to it.
In his now infamous 3,100 word memo on the company’s future, Nadella spent one paragraph on Xbox. He talked about its importance, but it’s hard to see how it’s very strategic for a company that Nadella described as ”the productivity and platform company for the mobile-first and cloud-first world.”
Microsoft’s mixed results have largely pleased Wall Street. But the good news on cloud services and stabilization in the PC market can’t mask an ugly truth for the software giant: All of its hardware divisions are performing somewhere between terrible and absolutely dreadful. The worst among them, though, was the Xbox division where the rapid deterioration of Microsoft’s console business may lead to another round of calls to spin the division off.
Things aren’t a lot better for Surface, which is at best treading water, or the Lumia smartphone group, which performed the best of the three albeit not by much. Here’s a look at how Xbox, Surface and Lumia are faring:
This is the part about Xbox One.
As Erik Kain reported here last week, the U.S. retail numbers for Xbox One don’t look that awful. The PS4 beat it handily at retail in June, by 36%, but with nearly 197,000 units sold, Xbox One seems to have benefited from its recent price cut.
That said, Microsoft can’t hide the fact that sales have been so tepid in 2014, it’s been working through channel inventory and manufacturing barely any new consoles. Consider these stats: In the prior quarter, Microsoft reported 2 million console sales of which 1.2 million were the Xbox One. That means the company was moving about 800,000 Xbox 360s just three months ago.
If we assume that the 360 is selling similarly at this point, then this quarter’s 1.1 million consoles likely consisted of just 300,000 Xbox Ones. To get a sense of how terrible that is, it’s as bad as Nintendo’s Wii U results for the quarter that ended in May.
Now, before anyone asks: How can Microsoft sell nearly 200,000 Xbox Ones in the U.S. in June alone if it shipped 300,000 worldwide for the entire quarter? The answer is that the channel has been sitting on too many consoles for and it’s now working through that backlog.
Going forward, that almost certainly means more Xbox sales, but unless Microsoft cuts into Sony’s substantial lead sometime soon, it risks becoming the also-ran of this generation. And it doesn’t help that despite saying nice things about Xbox, new CEO Satya Nadella doesn’t seem especially committed to it.
In his now infamous 3,100 word memo on the company’s future, Nadella spent one paragraph on Xbox. He talked about its importance, but it’s hard to see how it’s very strategic for a company that Nadella described as ”the productivity and platform company for the mobile-first and cloud-first world.”
I don't think Forbes would lie about business numbers. We are talking Forbes here not some tabloid bullshyt.
Like, stop being such fanboys. The Ps4 don't got no games, hollaback!