Xbox 360 tops U.S. console market for 18th consecutive month, but sales continue to fall

Xbox 360 tops U.S. console market for 18th consecutive month, but sales continue to fall

Summary: Microsoft is increasingly relying on the Kinect motion controller to buoy sales of its aging console.

TOPICS: Microsoft, Hardware

Microsoft sold 257,000 Xbox 360 units in the U.S. during June, beating both the Sony PlayStation 3 and Nintendo Wii for the 18th consecutive month, according to NPD Group.

The aging console -- although to be fair they are all aging -- now commands a 47 percent market share for current-generation consoles.

Things are not all good of the console though. It might have held on to the top stop but the sales for June are down considerably compared to sales of over half a million a year ago. According to NPD, the whole console industry is suffering, with sales of hardware and accessories at physical stores in the U.S. falling by 29 percent in June to under $700 million. Throwing digital sales into this mix brings sales up to $1.3 billion.

"Outside of new physical retail software," says NPD analyst Anita Frazier, "the second largest channel generating sales of content is in the area of mobile games.  We’ve watched this grow consistently quarter over quarter, and new survey results indicate that 57% of smartphone owners play games on their phones on a daily basis.  What’s really interesting is that when asked where they were when they last played a game on their smartphones, 65% indicated that they had played the game at home".

Microsoft continues to bank on the freshness of the Kinect motion-controller to buoy sales of the consoles, and has just launched the Kinect PlayFit dashboard to help keep track of the calories burnt from playing Kinect games such as "Dance Central 2," "Your Shape Fitness Evolved 2012" and "Kinect Star Wars."

The Xbox 360 held four of the top 10 U.S. console game titles, including "Tom Clancy’s Ghost Recon: Future Soldier," "Lego Batman 2: DC Super Heroes," "Max Payne 3" and "NBA 2K12."

Back in April, Microsoft's third quarter earnings report showed how revenue from sales of the Xbox 360 console had fallen dramatically over the quarter, down by 33 percent to $584 million.

Image source: Microsoft.

Topics: Microsoft, Hardware

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  • Sales in almost everything are down because..

    the economy is a wreck. iPads, new PCs every two years, these are things the average person realizes it isn't really necessary to get a new one every year since a smart phone can easily get a lot of people by. And the economy will probably get worse and more tech companies will continue to have declining sales or go under when Barack/Mit gets the next election (boohoo no Ron Paul).
    • iPad sales are down?

      Whilst a couple of weeks away for Apple last Qtr sales results it look like Apple will come close to doubling iPad sale year on year.

      Console sales are slowing because there's nothing new, rising competition from other devices in addition to sluggish US growth (the only performing XBox market).
      Richard Flude
      • CLEARLY

        you aren't a gamer. nothing new? open your eyes retard. people who play video games aren't replacing their consoles with phone/tablet games. are you retarded??????? back to "nothing new"..... well first i'm going to point out that MAYBE sales for xbox consoles are down because most people already own a gaming console (whether it is xbox, ps3, wii) but there is always new games coming out. GTA 5 scheduled to release soon, thats a huge deal in the video game world. quit fappin to your ipad and pull your head out of your ass. there is NO competition to the xbox, sales are down simply because people already own the console... and because a lot of people don't have the resources to go out and drop hella money on a new shiny xbox kinect bundle. that'll be the day when video game consoles die due to shitty android and iphone games. i for one am not replacing my console games with angry birds, draw something, etc. i feel like i probably am not the only one thinking this way either
        • What are you talking about?

          The person you are responding too did not say that iPhones nor iPads are in competition with game consoles nor did he put sales of said devices to mean that XBox sales are down all he pointed out was that iPad sales have not dropped because of a comment made by yet another poster. As for things changing in the console market fact is I have one of the original XBox 360's and after getting it fixed by MS because of that red circle of death thing it still works and I can't waist more money on a newer system cause besides a different outer cause and a quieter fan I don't see any reason too do so. I"m waiting for the next bing thing like a solid processor upgrade and video improvements something to make me say as a gamer I simply must have that and it's not coming at least yet and that is why sales are slower.

          Pagan jim
          James Quinn
        • The sacred temple of gameboy

          As you can see, they're even more fanatical than the OS fanboy.
        • Ah the MS fanboy

          Sales aren't down (half a year ago), aging console still very exciting, alternative consumer devices aren't powering ahead. Only "retards" would feel so.

          Sadly even these gifted people aren't replacing their console. Might help them to spend a little time in the real world socialising;-)
          Richard Flude
      • What do iPad sales have to do with the poor economy, or game systems?

        I'm certain a large number of those iPad sales will be to Schools, Universities, Businesses, Non Profits, as well as other originizations. How many of those places will be buying XBoxes or Playstations?

        Your comparing caviar or blue fin tuna sales to that of a decent salmon or talapia.
        NoMore MicrosoftEver
  • It's long past time to release the next generation.

    "The aging console -- although to be fair they are all aging"


    It's long past time to release the next generation.

    Many YEARS long past time.

    The casuals are moving to phones and tablets.

    The hardcore are increatingly likely to start moving to PCs. If they haven't done so already.

    And as dtdonoo points out, our economy is a wreck. Entertainment tends to suffer first in a bad economy.
    • but but

      what to update with?
      • What do you mean?

        What do you mean by "what to update with?" I don't entirely understand the question.

        You'll need to go to a store and buy a new one. You can't upgrade existing consoles to the next generation.

        As far as the design of the next generation goes, every component will need to be upgraded; we've gotten to the point where most gaming PCs are superior to it in every way. There's not a single component in the Xbox that is superior than a modern gaming rig.

        People claim that the Xbox 360 is designed purely for games, therefore it is better somehow, despite its age. That is not true: The original Nintendo was also designed purely as a gaming platform, but nobody will deny that a PC is superior in every way, as the system is far outdated. The Xbox 360 has arrived at the same point.
  • I dont think MS is banking on kinect anymore. That was last year.

    This year theyre banking on all the new content provider services. No need for a new console for those. As long as the competition remains equally stagnant theyll be fine without a new console.
    Johnny Vegas
    • telus tv

      last year they had Telus TV for the Xbox, so you didn't need a telus box for telux tv, all you needed was the xbox. when signed for 3 years, telus tv came with a free xbox that had telus tc program.

      Well, 1 year later, xbox 360 now has content providers, but requires a good membership. The Telus TV program need xbox live gold now too. (which sucks if the xbox came from telus and defeats the purpose).

      So media console/streaming, is where the console is heading.
      I guess in a way they were beta testing with telus.
  • It's called 'Market Saturation'

    Almost everybody who wants an X Box 360 has one, that's what tends to happen when a product has been on the market for a good number of years. So long as they are still selling more than the competition and the games are still selling well then the decline in sales is nothing to worry about. Microsoft doesn't make any money on hardware sales anyway.
    Doctor Demento
  • Why should I be first?

    This seems to be the way the industry is heading right now. Xbox has the top spot in sales, so why should they put out a new system? There was an article the other week about a patent filing for (possibly) a new PS(4?). Obviously Sony (just as Microsoft is) is working/testing a new system to be released to the market. But here's the main point. If Xbox has the top spot in sales, why be the first the market with your system only to have Sony release theirs a month later with better specs? What Xbox is doing is smart. Lets leave our system out there as it is, and (as a previous poster pointed out) add content via apps/streaming/services/etc. This buys you time until you release a new system and keeps your audience captive with 'the next new thing'. Also, buy getting their customers integrated into the 'entire package' that is available with Xbox, when Sony finally releases their new system (and Xbox makes the announcement for their new system), you will have less attrition simply for the fact that the customers Xbox is not integrated into their entire multimedia experience. I don't have a PS3 and can't speak to what they offer, but the main point is that everyday, Microsoft is gaining more market share...why change that now?

    (1) PS3 outsold 360 in it's precious strong hold the US market same month as GTA V launch.

    (2) PS3 has outsold 360 world wide and is the second best selling of the generation. 360 is in LAST place.

    (3) Xbox has lost a ton of market share accross the globe. The only reason X1 has sold slightly more in the US is because X1 is consistantly available while PS4 is sold out everywhere and still being sold above retail on amazon, ebay and craigslist.

    (4) It's not about sales of the excitement of a new console or the holiday rush with a new console. The next few months when PS4 finally becomes available will truly show PS4 dominance. Poll after poll before launch wasn't rigged. These things take time and Sony launched in more markets. Sure microsoft may have expected this but was it a smart move or false confidence?

    Xbox one still suffers from major problems related to the core principles of microsoft. (A) Still paywalls basic features like Skype, Browser, Streaming Services, even cross game chat. (B) Overpriced and underpowerd (C) Microsoft has proven they will not support the platform through it's entire life. Look up last 4 years of xbox 360 exclusives and how they dropped service/support on orig. xbox. (D) Xbox live is a worthless subscription service and no free games on X1. Games with gold will come to X1 but at the moment games with gold pales in comparison to PS+ and PS4 gamers are sitting back collecting free games. (E) Cable pass through means nothing to many around the world. While PS4 friend spectate/take over mode is something all gamers can enjoy as well as PS Now. (F) Xbox finally gets free exclusive content but again pales in comparison to Sony's. X1 has Fifa 14 and Metal gear content so far while PS4 has Destiny, Watchdogs, Assassins Creed & Metal Gear.

    Currently all the big publishers can only output 720p native on X1 VS 900p to 1080p native on PS4 and PC. EA, Activision & Ubisoft (Battlefield, Call of Duty & Assassins Creed).

    Xbox is the worst place to game and gamers have realized that. With the drop of support on 360 the last 4 years despite raking in 2.75 BILLION per year on XBL + revenue from ads on home page and they still didn't deliver in exclusives.
    Allen Heffley