ie8 fix

Who is buying all these Xboxes?

By | November 30, 2011, 11:56am PST

Summary: Microsoft sold close to 1 million Xbox 360s and 750,000 Kinect sensors during Black Friday week. Who is buying up all these consoles?

The numbers are pretty astounding to a non-gamer and non-TV watcher like me. Microsoft officials said this week that the company sold 960,000 Xbox 360 consoles in the U.S. alone over the week of “Black Friday,” plus 750,000 Kinect sensors, to boot.

I am not doubting Microsoft’s tallies, but I really wonder who is buying all these Xboxes? I know there are gaming fanatics out there, but don’t they already have one or more consoles? And while Microsoft is marketing the heck out of the Kinect, have the casual gaming and TV/movie watching crowd come to see these as the new must-have peripherals?

Obviously, deals and sales played into the latest numbers. But it’s kind of amazing to me that there were hundreds of thousands of buyers who wanted and needed a new Xbox — especially with rumors swirling of a new Xbox console (or at least a new Xbox 360 model) due out in 2012.

Microsoft also managed to sell all these Xboxes a couple of weeks ahead of a key Xbox 360 dashboard update that is due to go to the public next week on December 6. This update, which is being tested privately now, adds new social features, enhanced family settings, Facebook sharing, Bing voice search (in the U.S., U.K. and Canada only, to start) and cloud storage for Game Saves and Live Profiles.

Starting on the 6th and rolling out over the next few months, Microsoft and partners also will be adding Xbox Live TV services — which it is now describing as “customized applications for television, movies, internet videos, sports and music.” Verizon announced this week its plans for  its FiOS TV application bundle, which includes 26 channels viewable by those who are both Xbox Live gold customers and Verizon FiOS TV users. At $89.99 for a FiOS TV, FiOS Internet and Verizon voice service package, I’m almost sold — except that I don’t watch TV or care about gaming…

What’s your take? Who is buying all of these Xboxes and Kinects and what are they doing with them? Any guesses, anecdotes or tin-foil-hat speculation?

Update: On Twitter, folks have been vocally chiming in on this question. More than a few of my Twitter buddies say they are buying their second and third Xbox consoles (one for almost every room in the house). Others speculate the buyers are disenfranchised PS3 or Wii customers. And some of those who confess to being among the purchasers are just folks who cannot resist a good holiday deal…

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Topics

Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

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RE: Who is buying all these Xboxes?
hysonmb 7th Dec
@Starkenator
The Media Center Extender is why I'm planning to get another one. It's less expensive than building a decent PC to serve the purpose and provides another console for the kids to use while I'm watching football on Sundays grin
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RE: Who is buying all these Xboxes?
AsifHussain1 30th Nov
Maybe Chinesse people or resellers in other countries
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RE: Who is buying all these Xboxes?
tonymcs@... Updated - 30th Nov
@johndow1

How about the simple answer - people who want them. The 750,000 Kiinects are the real answer as the Kinect still requires an Xbox. Once you've used controller free interaction or saw someone else using it, you are hooked and it's the sometime or first time gamers it's appealing to, rather than the hard core gamer. Add all it's non-gaming features and you have a real bargain and a glimpse of the future.
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RE: Who is buying all these Xboxes?
cool8man Updated - 1st Dec
@johndow1 A lot of the people buying are Nintendo Wii-families who want to upgrade to Kinect, HD graphics, and Xbox Live. If you've been playing motion-control games for the past few years then the Xbox Kinect is now the best system to play games like Just Dance, Black Eyed Peas Experience, WipeOut, Kinect Sports, Dance Central, Your Shape Fitness and Disneyland Adventures.

Microsoft is also still dominating the core gamer market with big releases like Call of Duty, Forza 4, Gears of War, Battelfield, Skyrim and Halo. Xbox is the only console that can satisfy both casual gaming families and core gamers. And for the time being Sony and Nintendo don't really have a response to Kinect. Kinect leapfrogged over the technology and capabilities of the Wii and the PS3.
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RE: Who is buying all these Xboxes?
neil.postlethwaite@... Updated - 1st Dec
@cool8man
Suggest they hang back a few months, and get a Wii-U, for all those benefits, and all their existing investment in games will still work going forward.
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RE: Who is buying all these Xboxes?
The Danger is Microsoft 4th Dec
@neil.postlethwaite

I have a Wii and that Wii U looks really stupid. It looks more like a new Nintendo DS player.
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1) Speculators who will just return them if they can't unload them for a profit in a week or two.
2) Clueless parents who want to buy their kid "a video game" for Christmas and just bought it because it was cheap without understanding what else is required.
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You are clueless
ZenithY 30th Nov
@TBone2k
I bought one for $199 on Thanksgiving from Toysrus. Also bought Sport2 from Amazon for $30.

There were playbook in Office depot for $199, I took a look and walk away. Why should I buy it, for what? I also played Kindle Fire for a couple of minutes, and give up. The browser contents looks silly in some web sites.
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RE: Who is buying all these Xboxes?
Ben.U Updated - 2nd Dec
@TBone2k I guess I'm fitting the no. 2) profile - a clueless parent that resisted till now to the kids pressure to buy a Xbox with Kinect, but then again the kids and their friends love Kinect, and now me too - so I guess for once they were right
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Media Center users who want new extenders of course! JK! Seriously probably mostly people who have never had an Xbox (prices are finally low enough) and people wanting to add a 2nd or 3rd machine to their home.
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@Starkenator
You're dead right. I'm one of those who will buy it both for Media Center usage and also as a gaming console now that prices are low enough. Kinect is clearly the future.
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@Starkenator
The Media Center Extender is why I'm planning to get another one. It's less expensive than building a decent PC to serve the purpose and provides another console for the kids to use while I'm watching football on Sundays grin
With multiple gamers per family, my guess is that a lot of households are realizing the ROI of the $$$ in a console over a year of playing, and figuring out that those consoles are cheap enough to buy a 2nd or even a 3rd. There are some great multi-player games that play even better when everyone has their own TV, instead of split screen (if they play on same console at all).

In addition to multi-family, there are so many great single-player games (esp. story-based titles, as well as Kinect games) that cause family members to often find their one Xbox console "occupied". Again, the consoles are cheap enough and with a broad enough variety of titles that 2 or 3 isnt that extravagent anymore. Consider to 10+ years ago, when most TVs had rabbit ears and the 1 or 2 good TVs had a cable connection. Now, every set has a digital feed of some kind.

I think its a similar trend, and with the upcoming Xbox dashboard update, looks like the inevitable realization of set top box consolidation with gaming ... as some in the Seattle area have been aspiring to for quite a while.
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@JasonBuffington

Exactly. We have two Xbox's at my place. My roommate and I both. Plus, the Xbox is cheap enough now to be worth buying to serve as both a gaming system and a home movie center with Netflix, DVD/BR abilities. Its becoming exactly what Microsoft is planning on, a home entertainment center...

Game Hub
Music Hub (Zune)
Movie Hub (DVD, Netflix)
Social Hub (Facebook, Xbox Live, etc)
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@spaulagain Exactly. My family has 2 Xbox's. We use it for music, gaming, movies, and just about everything you could want from a 200 dollar table top console.

Something that most people don't know is you can pair your Xbox with your computers Vuze program. From their, drag and drop music or movies and stream it straight to your Xbox. Doesn't matter if its a Mac or PC. You even have the choice of streaming in HD or SD.

The XBOX has really become the all in one, and the Wii and PS3 pale in comparison
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Its simple really, with a lot of major releases out this year for Xbox, people are buying. Non-early-adopters of kinect are now adopting the platform and people who want a new xbox, to upgrade from the old, are doing just that. The timing is just working itself out really well.
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RE: Who is buying all these Xboxes?
Rob.sharp@... 30th Nov
@thejellymon

It doesn't hurt that this is the best game platform to date. MS has the wow factor in graphics, choice of games and they dominate online. Sony and Nintendo have a long way to go. Wouldn't surprise me if Nintendo jumps ship in the next 5 years like Sega and focuses on software only.
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@rob.sharp@... NOPE. PC is best gaming platform to date. Don't spread your hatred and lies in the purity of the interweb. Everything here is true, so we don't need terrorists like you to spoil it.
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@rob.sharp@... He so wants to believe that PC gaming is alive and well.

Or does he?
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qwetry Yes, lets sit all my buddies down and play BF3 in front of a computer. Want to switch from a game to ESPN without using a remote? Just use your voice.

PS: Xbox 360 supports 3D. Halo Anniversary on 3D is AWESOME! Halo+3D=Jaw on the Floor
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RE: Who is buying all these Xboxes?
claytontlewis 30th Nov
Are these numbers from devices sold to the channel or devices sold to the consumer? If this is to the channel then I'm sure a lot of it comes from retailers all stocking up in anticipation of demand for the many Xbox deals they offered.
@claytontlewis
I would have to say they were sold to the consumers, as retailers would have had their inventory well before Black Friday, in anticipation of Black Friday.
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Everyone is, Xbox is the entertainment device to own in the US. It does everything. I have yet to watch a movie with someone using Kinect without them getting an Xbox and a Kinect.

I even find myself yelling "xbox" at my bluray player "which I hardly use anymore" it has become such a big part of the experience haha.
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Contributr
yelling at your Blu-Ray
Mary Jo Foley 30th Nov
That was funny! But I bet it happens to others too... MJ
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@incendy

I do shout "Bloody Linux" when my cable PVR goes weird wink
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RE: Who is buying all these Xboxes?
thensley@... 30th Nov
People replacing all of their ring-of-deathed X-Boxes that are out of warranty.
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@thensley@... I disagree. The new XBox (Slim) are pretty good. No ROD issues yet!
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@thensley@... I haven't heard of this being an issue on the new slim xbox that has been out for over a year.
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@thensley@... The latest model has more or less eradicated that problem.
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RE: Who is buying all these Xboxes?
wendellgee@... 30th Nov
@everyone who replied@

Think people. The new ones are under warranty.

He said OUT OF WARRANTY. geesh
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That happened 2-3 years ago.
William Farrell 6th Dec
@wendellgee@...
I'm sure that all of those units where replaced back then, as there hasn't been a problem since.

So no, these are new sales to mostly non-XBox owners, world be my guess.
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@thensley@... I'm pretty sure that problem was solved back in 08. People still getting RROD should stop playing in their dusty attic, where their Xbox stands between an Encyclopedia set and oversized wool blanket.
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First off, just think iPhone price reduction. What happened then? Gaming consoles are very expensive to produce, so their initial price is always very high, making the consoles available to only the early adopters and gaming enthusiasts. The sheer number of gamers is astounding. Also, if you grew up in the Nintendo, Sega Genesis era, then you know it's common for gamers to own ALL of the latest consoles.

Aside from all of this, it is one of the best multimedia tools out there right now for people that want more than just a gaming box. Sure, PS3 is way better and you get BluRay, but guess what...something called identity theft has given PS3 an awful name. No major issues with Microsoft though. It also helps that some of the most popular console games of all time were initially, if not still are, Xbox-only titles, or came out for Xbox first. There is also a lot of consumer and demographic stuff I could go into, but who actually likes econ?
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@daj150 What is the difference between 1080p and blu-ray? I heard the blu-ray picture is better, but how can it be higher than 1080p? So should a person pay a premium price anymore to get it, especially when one console offers more than the other?
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@Fat Albert 1
Great question. I'm confused too. Would love to get a fact-based clarification from anyone out there.

Is Blue Ray theoretically capable of producing a picture better than 1080p? If yes, that means we're just waiting for TV's that can provide the higher resolution.
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take a break from blogging and ms bashing already. are you that dense to realize 1million people would buy xbox for kids? i know parents of 4th graders who waited for the $199 kinect bundle (still online btw). kids grow up, even if adults and fanboys/girls don't seem to
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I'm not sure why you care who is buying all these XBoxes and Kinects. I'm astounded myself at the vast amount of Twilight gear that gets sold, but since it's not my money being spent on it, I don't care who's buying it.
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Contributr
bashing and wondering
Mary Jo Foley 30th Nov
@swmace and @chinch987: I am not trying to bash MS with this post. I am genuinely curious. I am not a gamer and I am not a TV watcher so I don't understand the attraction. That's why I am asking.

I also am interested in whether the buyers are repeat buyers getting their 2nd, 3rd and 4th consoles (which, based on feedback on Twitter I'm getting, seems to be a substantial group); first-time console buyers; and/or people replacing PS3s, Wiis, etc.

That's why I care who is buying them. MJ
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RE: Who is buying all these Xboxes?
FuzzyBunnySlippers Updated - 30th Nov
@Mary Jo Foley

I bought one because, well, my XBox Elite went RoD. I know of three friends that bought their second one, along with Ceton cards for their PC's. It ends up a nice way to use the XBox as an extender/controller for viewing/recording, despite other comments here that 'lack appreciation' of that setup. You may feel free to add these 4 instances to your overall statistical samples.

PS - I always look forward to your articles. I don't always agree, but I appreciate good, thoughtful writing.
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@Mary Jo Foley sorry but your editorials have too many uniformed hints of "conspiracy" theorists. Instead of writing an article like this look up past console sales and how they grow in the later stages of their life, going back to the genesis & playstation. also the "new xbox in 2012" is highly unlikely and also nonsensical. Regardless, a $149 xbox360 or $199 kinect bundle is a huge bargain with long shelf life and thousands of games. I know people who waited to buy.

Finally learn that as an adult author - pandering to blogging iTekkies mind you - you don't realy grasp what kids and "real markets" do and as such should not comment on these things. In this regard video gaming is a huge market (see recent game announcements) and kinect makes 360 appeal to kindergarten ages up to grandparents. PS3 and Xbox original have/had appeal for middle/high school tekkies and college age. HUGE MARKET expansion as pre-K kids grow, nevermind as prices drop. Huge sales are the result
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My Company...
GoodThings2Life 30th Nov
... just bought a dozen Xbox 360 consoles and Kinect sensors for gifts for the company Christmas party.
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RE: Who is buying all these Xboxes?
b20crx Updated - 30th Nov
I own 2 360's and I am planning on dropping our Mediacom cable service and setting up a sort of iptv option using my 360's and netflix streaming/huluplus and a future live tv service offering through the dashboard. Looking forward to getting the kinect for my daughter and even seeing how well the voice command works for tv. I'm really tired of the crap cable service and awful customer care from Mediacom and if I could i'd get rid of their internet service as well, but they are the only providers in my area.
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@b20crx Good point. I wonder if cable companies are going to begin charging ONLY for 3rd party services you might get on other consoles, like the xbox (so you won't have to pay for TV cable, too)

No more stress from the Cable company. Just plug in your XBOX and go!
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Maybe a lot of people have finally outgrown or decided that their Wii consoles are lame and need to be replaced.
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Don't laugh, I know of three people
William Farrell 30th Nov
@LeMyke
that are "Moving Up" to the XBox from the Wii
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RE: Who is buying all these Xboxes?
ItsTheBottomLine 30th Nov
@William Farrell We did so I very much belive that
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RE: Who is buying all these Xboxes?
ItsTheBottomLine 30th Nov
@LeMyke We bought the XBox 360 last year with Kinect - and never use the Wii. The Kinect it much better experience, and that seems to be the consensus with our friends kids and families. Wii is like little kids...
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RE: Who is buying all these Xboxes?
FuzzyBunnySlippers Updated - 30th Nov
@ItsTheBottomLine

I think along the same lines. Wii may have great success as a more family oriented device, at least it did so against XBox' offerings for a long time. I'd like to hope that it was simply parents deciding the XBox offered more adult driven content for so long, against the softer, known, offerings of Nintendo. Maybe now that there are more family centered games on the Xbox, it has garnered more attention. (?)
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@ItsTheBottomLine We have both Wii and Xbox consoles. For games we have that are available on both, we like playing on the Xbox better. We just ordered a Kinect bundle on Black Friday and we'll see if we ever use the Wii any more.
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I got my second one for bedroom. It allows me to play DVD, Netflix and play games when my girlfriend is on her NCIS marathon in living room. I am guessing there are a lot of people in my situation. Also my uncle got it for the first time for Kinect as he has two young kids.
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Count me in as a first time Xbox buyer on Black Friday weekend. It was the price of $300 for xbox 250gb and kinect that finally did it for me. My family has a Wii and had a Playstation 1 (which I didn't buy until well after the PS2 was available). I guess you can call me a late adopter.

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