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Xbox One demand "through the roof", could outship PS4 by 3-to-1

by Mark Tyson on 25 July 2013, 10:15

Tags: Xbox, PlayStation

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A couple of reports from diverse sources are pointing towards sales really taking off for Microsoft's next-gen Xbox One console. Firstly GamesIndustryBiz reports that a market analyst says that his "supply chain checks" suggest the Xbox One will have a "2-3x unit advantage at launch". Secondly Microsoft's Aaron Greenberg tweeted that Gamestop has had to cease pre-orders of the Xbox One because "Demand was through the roof", the company has since implemented a first-to-know availability bulletin. Also we know the price of Xbox One first-party games in the UK and US, as some are on sale on the Microsoft online store already, they're all £49.99 ($59.99 in the US before state taxes).

Supply chain checks

An a recent report GamesIndustryBiz quotes Baird analyst Colin Sebastian. Behind the scenes machinations of industry seem to indicate that Microsoft's U-turn in its DRM policy and other moves to please the gaming community may be paying off.

"Despite losing the headline battle at E3, Microsoft's Xbox One appears to be regaining some momentum, in part due to the used and online policy tweaks. Importantly, our supply chain checks suggest Microsoft may have the benefit of a 2-3x unit advantage at launch compared to Sony's PS4," wrote Sebastian in a note to investors.

It's common for the supply of console systems to run dry shortly after launch, add the imprending Xmas season and the Xbox One, even if it costs $100 more could still sell out. It is noted early adopters are often less price sensitive and that Microsoft is "working with channel partners to lessen the gap," in prices between its system and the PS4, again according to Sebastian's note.

GameStop orders "though the roof"

Microsoft's Aaron Greenberg tweeted "Demand was through the roof, so pre-orders stopped for now. Get on the Gamestop first to know list for pre-order updates". So GameStop has set up a "first to know" mailing list to let people who have not managed to secure a pre-order know when stock arrives. While this information doesn't give us any real data to chew upon Major Nelson said that the Xbox One is eclipsing the Xbox 360s pre-launch performance. It must be noted that PS4 pre-orders are also fully spoken for at GameStop.

£49.99 a game

It looks like the standard price for Xbox One first party titles is set with gamers in the UK expected to cough up £49.99 per game, and US folk will be squeezed for $59.99 plus the tax applicable in your state.

Every Xbox One is a developer console

Microsoft has a "vision" that every Xbox One owner can be a creator and every console will be able to be used as a development kit. Microsoft’s Marc Whitten said in a statement "This means self-publishing. This means Kinect, the cloud, achievements. This means great discoverability on Xbox LIVE. We’ll have more details on the program and the timeline at Gamescom in August."

Digital Trends notes that to publish a game there will likely be a certification process and the payment of some kind of fee. More about these development possibilities are to be unveiled at Gamescom in Cologne, Germany from 21st-25th August.



HEXUS Forums :: 42 Comments

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I am amazed people are choosing the xbox over the ps4 the ps4 is cheaper and more powerful by all accounts. Dont get me wrong I think the xbox is a good looking machine specs wise and a lot of its functionality is great but the reality is as a gamer the ps4 is just better for games.
This is BS publicity stunt...Nothing to see here.
Brand. Xbox is a better brand that PS4.

Kinect. Mum's like the idea of little kids dancing.

First Mover Advantage. They will have it shipping, with plenty of channel supply before the PS4 is even launched. This means people will have to be wanting to wait for the PS4. I wouldn't be at all surprised if MS do some promotional thing around the time of the PS4 launch, free xbox live for 12 months or similar to make the price the same.

Then you get on to the whole media device / entertainment thing. Microsoft can offer an Applesc full set of services, Music rental with Zune pass now called xbox music I find better (and cheaper!) than spotify. They have a Movie rental service of their own, whilst having Netflix support and Love film, which if they do the adverts right, will show the whole Kinect integration thing. I remember my grandfather had a VCR with a cabled remote control, we've all gone IR since then, and Bluetooth for some, I reckon for TV stuff we will lose the remote. Myself I have no Sky it's simply overpriced imsho. So I have Netflix and LoveFilm. I just want to sit down and say Watch Top Gear. That's it. That is quite a nice step towards the future that MS have, as part of their core hardware offering.

However, I think that MS might also go in with some bundle deals. I would expect to see them either promoting the SmartGlass thing by selling discounted Surface/Xbox bundles or more likely the Smart Phones. There would be a lot of margin on a contract of £45pcm for a low end 4G Nokia and an Xbox One. People love to pay a lot of money over a long time, MS have shifted Xboxes this way before, I wouldn't be at all surprised to see it do it again.
ShavedApe
I am amazed people are choosing the xbox over the ps4 the ps4 is cheaper and more powerful by all accounts. Dont get me wrong I think the xbox is a good looking machine specs wise and a lot of its functionality is great but the reality is as a gamer the ps4 is just better for games.


You've played the games on both, then?

Edit: Whilst the article is hyperbole, the power of Minecraft should seriously not be overlooked.
ShavedApe
I am amazed people are choosing the xbox over the ps4 the ps4 is cheaper and more powerful by all accounts. Dont get me wrong I think the xbox is a good looking machine specs wise and a lot of its functionality is great but the reality is as a gamer the ps4 is just better for games.


Yeah...this isn't a preference thing...it's just reality. I have a really hard time believing all-things-equal that the xbox is selling the same, granted launch units will sell out regardless. There is no conceivable way the general public is siding with MS from every person (from geek to Joe) I have spoken with. I also have a really hard time believing they have 2-3x units unless the rumors about modifying the clocks (down) or upping the voltage for the soc are true and that allowed them to use more chips. Even with reports of some kind of miraculous breakthrough at global foundries, it all seems kind of suspect. These things do not just magically happen without there being a reason.

These are the kinds of answers that will come only after specs are completely locked down and we see the machines next to each other, along with some kind of expose' on specs. If one is slower than expected, warmer/louder, and/or drops in price shortly after launch, that could be an indication of a 'why' they are available.

When I see 'working with channel partners' to make it cheaper, that sounds simply like a global foundries or amd thing as most of the other parts are really inexpensive...which again sounds like maximizing chip yields. The real partner they need to work with is themselves to get a kinect-less version out for 300-350. We all know the split on the xbox/kinect is likely 300/200. They simply need to just let the damn thing go; many people simply do not want it irregardless of Microsoft's dream of how the console will be used by everyone. It's the main expensive mistake they made other than the now-dead drm policies and needs to happen.