Rumor: Is Microsoft cheating their sales? |
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This is bound to be a controversial topic for many people, especially the fans of the Xbox 360 and the other consoles, so let's take it step by step. According to a post on Softpedia, there are rumors circulating about the accuracy of Xbox 360 sales figures, with Microsoft rumored to be the culprit of a little bit of cheating to up their numbers.
The site explains that it's not a matter of units sold in stores, but the count of units pushed out by Microsoft to stores that changes the numbers somewhat, regardless of whether they've been sold or not. As Softpedia explains,
A company like Microsoft has a fiscal year to end. As the end of that fiscal year approaches, the company realizes that only 9 million units of their product have been shipped (sold units are something to bother their heads with later) out of the 10 million target. The company then “stuffs retailers” with the extra 1 million units and they can happily say they've ended their fiscal year.
There are a couple of things that make this rumor very juicy for many fanboys. First is the backlash associated with this kind of activity. If any company were to be found doing something like this, wouldn't retailers be a bit wary of stocking their shelves with products from that company? More importantly, wouldn't they be risking the ire of their shareholders by cheating? Lastly, wouldn't this be the type of rumor applicable to other companies as well, if such were the case?
All in all, there are some sobering thoughts with very broad implications for any company if that were true. That being said, would you buy from Microsoft, or any other company for that matter, if they were cheating their sales?
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Several other sources then jumped in, and said that they felt that the guys blog was INCORRECT. And that he is blowing it out to be a big deal for no reason. They even went on to say that what he was posting about was something that EVERYONE KNEW ABOUT MONTHS ago. They also said that The author claims that MS force pushed millions of consoles out.
But THEY beleive MS only pushed out thousands. a Common business practice for hardware companies because UNLIKE software.... Hardware has increased shelf life, where software is usually obsolete after a few months. They then went on and said that SONY does the same exact thing, and of the 3 console companies only NINTENDO is the only one not doing it "currently".
""Microsoft sold-in 10.4 million 360's by December 31," noted Pacific Crest Securities' Evan Wilson. "It seems very unlikely that Microsoft stuffed the channel to beat their 10 million forecast."
Wedbush Morgan Securities' Michael Pachter was similarly skeptical. "It's possible that Microsoft has shipped a few hundred thousand consoles more than retailers want, but not possible that it shipped millions," Pachter told GameSpot, adding, "Microsoft would never stuff the channel to make numbers look better. I really don't buy this at all."
Lazard Capital Markets' Colin Sebastian called it "old news," but not what he would characterize as channel stuffing. "Microsoft's guidance for Xbox shipments during the first half of 2007 disappointed some investors, but the reality is they already had enough units in the channel to fulfill much of the demand," he said.
Nollenberger Capital Partners' Todd Greenwald said Ehrenberg's issue with Microsoft was legitimate, but also old news.
"Sure Microsoft probably over-shipped the channel," Greenwald said," but we knew that three months ago… To me, and most of Wall Street, it was pretty clear what Microsoft had done. And Sony's done the same thing. Nintendo's the only one who isn't doing it, but that's not to say they won't do it again in the future."
Greenwald also pointed out that it's different for a hardware vendor to stuff the channel than a software publisher because systems have a much longer shelf-life and will eventually sell. On the other hand, Greenwald said if software doesn't move in the first month, excess inventory will quickly suffer price cuts and returns.
Bogus or not bogus?: Bogus that this is a big deal. Companies play semantics with "units shipped" and "units sold" all the time, we essentially knew about this months ago, and one man's channel stuffing might be another man's slower-than-expected holiday sales season."
For more accurate info....
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Ehrenberg bases his accusation of channel stuffing primarily on postings from another financial blog, the Apple-focused Blackfriars' Marketing. The first post was made last December, and questions Microsoft's ability to hit its publicly stated target of selling 10 million Xbox 360s by the end of 2006.
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That should give you a REAL clue right there about how legitimate these claims are.
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Well that shows it then eh!, what a pointless news post about a stupid rumor on some site noone cares about.
If you search other sites im sure you will see just as many RUMORS about the other console sales etc to.. POINTLESS RUMORED NEWS..
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but i think it's real
because microsoft only thinks about the money,,
and they want to be better than sony,,
so this rumor is probably true
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Believe what you want, but STFU here.
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If you want to know actual sales figures then you need to get them from the sources that track those sort of things such as media crate.
But then again all you fanboys are going to bash MS for reporting that they have sold 10 million units to stores anyways so I guess I am just wasting my time for nothing. The thing about it is that Sony has had to do that sort of thing since launch.
My 2 cents.
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I think if we wanted to prove this we would simply go to the nearest retailer and ask if they usually carry more xbox360 at the end of MSs financial year than normal. We should however caution any information because the system is only a year and a half old and a trend could never be established.
I for one want to bring up the problems of people buying their second xbox360 and simply throwing out their first broken unit. I am one. Others out there bought a second(or third) system due to inability to get theres fixed (due to warranty expiration or hacking), and these numbers are unchecked.
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Also, Nexgenwars.com SUCKSS!!! THey are so off it isn't even funny.
Use http://www.vgchartz.com/ngwars.php
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IT'S CALLED MONOPOLY... we should know soon from the justice department. AGAIN.
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I cant find the link now but they removed it. They had a line graph showing the progressive sales of the consoles. Both the PS3 and Wii had a steady increase while the Xbox360 had a huge drop.
How does a console sell and then suddenly drop by over 100k? Thats because they dont get their numbers from sales figures, they have a counter.
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So the question here is how many broken and replaced ones are out there? maybe half a mill I dont know. One other question is now that peoples warranties are expiring since its been a year and a half now plus the hacked ones, knowing the overheating proplems of the unit and its possible death at any time one only wonders how many xboxs have been really sold.
If this story holds in the end then what stops MS to push the new Elite xbox 360 shipped units in the SOLD part of their sales figures? Is this going to be a joke all the way to the end for MS Fans?
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Their projected sales are supposed to be 12 million by July, this is looking very bleak for Microsoft, since Nintendo sold about 6 million in about 4 months.
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However, it comes at a price. If Best Buy is "stuffed" with unit for one quarter are they going to buy the next quarter? NOPE!
It's a give and take.
Then, if they screw up they go to real sales number.
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Why pay $300-$400 for a new one? You didn't as you don't even own an XBOX 360. Just another gaystation fantard trying to make it seem likely their XBOX 360 will break. Sony's going to outsource production to the same company that makes XBOX 360s, so the PS3 will soon have similar build quality.
This worked for sony too. How many of the 110 million PS2s had disc read errors after a few years? Does sony even offer to fix out of warranty consoles at all? Probably 30-40 million of the PS2s sold are broken, and with most owners already having a large game library, they bought new ones. Just do a search of "broken PS2" on ebay and see.
"I for one don't think its true it seems as if Microsoft haters are trying to convince everyone that MS sales are not that great."
Hey, isn't that what you're trying to do now Mr. MS hater?
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SONY AND MICROSOFT refer to shipped numbers as sold. 360 fans so quick to talk about SONY SHIPPED NOT SOLD...when MS does the same thing!!!!!
also.... 360 fans really love nexgenwars. i know the 360 is winning more on that site.... is that the reason why?
AND... QJ is just a delayed VGcharts.org site. Every article there makes it to this site the next day....
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Honestly, companies often try things like this - it wouldn't surprise me that much. Especially with Microsoft's track record to do anything to win.
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sony doesnt want to compete with mircosoft anymore...as long as they help sell there TVs.
with the elite coming out with hdmi...sony will sell more TVs.Make sense
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I don't know anything about the vista withholding rumor, but I can verify that MS pushed tons of consoles into stores, and they still haven't all sold. Not sure what that says about the installed base of 360's but if it's not 10 mil, it's probably still pretty close to it.
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a ps3 is €600
it includes:
-60gb
-wireless controller
-blu ray player
-card readers
-usb ports
-build in wifi
-internet cable
a 360 is €399
it includes:
-wireless controller
-Headset
-20 GB HDD
-HD AV Cable
-i don't know what else
and if you want to play HD DVD
you got to pay an extra €200
so they're both €600
i know that Xboxlive is better than than what the ps3 offers,, but there is no web browser on the 360,,
and my friend has a 360,, great games,, but he says that the 360 breaks quickly
everything is made of plastic
the 360 doesn't sucks but i prefer the ps3
i know you start hatin,, but i don't care
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6th? 7th?
console war,you'd think by now the "what's better" debate would be over since the big sellers are typically ported to every system.
sony has the best single player experiences.
microsoft has the best mulitplayer experiences.
nintendo has something different for everyone.
we are in an age when owning 1 console means you miss a big part of the fun.
what i want is games to run on multiplatforms.
why do i need 6 copies of madden 07?
if the Wii version offers something different why can't i have one disc that plays according tot he system i put it in?
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As for the PS3...No one really likes it.
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I hope you dont think Apple is in the lead with their measly 6% share of the PC market.
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Nintendo are in the best spot right now. By the end of the summer they will be in first position. Big help coming from Japan. (those funky gamers). But when they will realize that the games are only PS2 ports or Nintendo mini-games sell for full price games they will calm down.
Sony will gain some points only when they will lower the price, combine with good AAA titles. Will probably happen this Christmas. Yes even if halo3 is out. Not everybody like this game... you know. So by next spring they will outsell MS.
So for now try to enjoy what you have. And let the numbers say what they want them to say.
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What's he trying to prove anyway? How desperate he is?
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You're probably pissed you modded your 360 and it broke now you can't get it fixed. Tough sh*t, don't steal next time.
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the products and their employee's are all peices of sh*t.
if anyone hasnt realized this is the start of the end for sony.
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So what's the big deal *IF* MS is doing it ? As far as MS is concerned, when they SELL a unit to a vendor, it's sold, they got their money, now it's up to the vendor to do their work....
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PS3 is going to stay in last place, probably for its entire life cycle. To even think that it will surpass the 360 is just wishful thinking, especially when the 360 is cheaper, better, and has many many MANY more games. Not only that, but the 360s graphics even look better. Name one game that looks better thats on both the 360 and the PS3. You cant, because they all look and play better on the 360.
LOL @ *gaming avalanches*, MGS4 and FF isnt a gaming avalanche. And dont even list off Lair and all that crap because those games looks like Xbox 1 games. Just because Lair and etc are exclusives doesnt mean theye gonna be console sellers. The only games PS3 has that MIGHT sell mass ammounts of consoles are MGS4 and FF, thats it. And theres all sorts of rumors going around that hint at them coming to 360 anyways, and we all know what happened with the DMC4 rumor. In fact, theres an article in Game Informer that talks about the 360 getting the next FF game as well. If you dont believe me feel free to pick up the magazine and read it for yourself.
I am enjoying what I have, and once Halo 3 hits there will be others enjoying the same thing I have. Numbers dont lie....
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first of all the 360 has USB ports too...
And MS didnt WANT to use WiFi... they use their own wireless technology, whicgh is WHY Sixaxis controlelrs DROP connection a LOT, and 360 ones never do.
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And btw, $ony reports "sales" by number of units sold. However, you are correct that more often they report "shipped" which is, you guessed it, the number leaving their warehouses.
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people will decide which system is successful just like in any old console war.
snes vs genesis/32x/cd, game gear vs gb/gbc, master system vs nes, ps1 vs n64 vs saturn, ps2 vs dreamcast vs xbox vs gamecube.
the result will show in few years. let them battle coz it us the gamers that always wins, many games will be made for us to play. chill out, enjoy! loved the high def part. if only nintendo participated in the high def competition, imagine 1080p legend of zelda pixel per pixel. and of course all nintendo character franchise would be welcome.
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It beat them both on first weekend sales in Europe by a huge amount and I think it will continue to sell big numbers.
I couldn't care less. I've always bought PS products and will always do it. Right now it's the most powerful but like everything that won't last long. It's all good for us gamers as we just get better and better machines whatever the make. Buy what you like and to hell with everyone else. I have better things to do than flame someone for liking a different console.
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the ps3 will follow the footsteps of the ps2 and also the 360 will follow the way the xbox did.
just the wii could get very very high sale numbers.
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Guess what moron, Sony does the same thing! Manipulate sales numbers to impress consumers and investors. If sony does it, MS has to too. Why give away an advantage simply because many consumers don't seem to care if numbers are inflated.
Besides, this is blown way out of proportion. It only affects the number by maybe 100,000, which easily fits into the retail channel.
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and i play the god damn console quite a bit.
and u say that xbox live is much better.
theyv had that service for ages and upgraded it many of times, they have also patented the xbox live technology so sony or other services cant use it.
atm sony has a team working on their own version of a xbox live without all the technologies they use.
just give it time.
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Nintendo, 360, PS3, Ipods, Whirlpool washers, potatoes, snickersbars, EVERY PRODUCT SOLD TO CONSUMERS. These are all measured by the amount of product the company sells to retailers, NOT the amount the consumer buys from the retailers. Once the stores buy it from the manufacturer it is officialy sold. Weather or not someone takes it home is a whole different (and not officialy counted) thing.
Eventualy the number sold by manufactures and sold by retailers match since there are only as many made as demand requires, however in any electronics lifecycle the market always has more availible in its first year or two until the manufacturer ramps down to meet actual demand. When the PS3 was availible in any store in here in America around Christmas, those units on retailrs shelvs were counted by Sony as sold since, well, they sold them to the retailers.
It's not a scam or some underhanded number manipulation, it's THE WAY that the market determines how much the manufacturer has made in terms of units and money. Get over it.
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The comparison is so retarded....
first of all the 360 has USB ports too...
And MS didnt WANT to use WiFi... they use their own wireless technology, whicgh is WHY Sixaxis controlelrs DROP connection a LOT, and 360 ones never do.
my sixaxis never dropped their connection,, so stop *****in,,
i saw something on tv,, about the 360
360's bought in or before december make scratches on the cd's,,
microsoft ignored everyone,, till that tvshow started to whine about it,, and now they are willing to repair the 360,,
microsoft doesn't care about the customers,, they just want to sell as much,, even if it's broken,,
if the sixaxis drops connection,, sony will replace your controller with a new one,, but i don't see microsoft doing that,,
what's so great about the 360??
the ps3 kicks 360's ass
and that's a fact
wait till GTA comes out on both consoles
GTA on 360 will be like this:
you're driving around,, and out of nowhere,, a building pops up :P,,
you won't see that on the ps3,,
you can start *****in,, but just wait and see
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The sad thing with the PS3 is even with inflated sales numbers they are still pathetic. So go ahead and blame everyone but sony since MS and Nintendo have such a better product and games they naturally sell better. I would expect no less from a dumbass like yourself.
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Blame sony and blu ray for making the PS3 suck. I would have bought one if it had games available and was $200 cheaper.
Many consoles die out after being successful last generation. The Sega Saturn is a perfect example.
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Im sure Nintendo will come out with the Wii HD or Wii Advanced...or whatever...but it will include HD. I bet they are waiting for technology to get a lil cheaper and release the Wii, but in HD. That will allow them to keep the console at a lower price and people will have no problem in buying another one.
Think of the gameboys and how many remakes they had of it. Nintendo DS to the DS lite.... a lot of people bought both since the price was affordable. expect the Wii to do the same thing.
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In fact, a friend and I played through GOW I + II for days straight on my PS3 and the batteries didn't even need a recharge and made it all the way through!
Don't open your mouth till you've actually had experience first hand, or you'll end up sounding like a tard.
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Sound like softpedia and wikipedia carries the same type of Bull*****. Also the answer the stupid question. I a company has a product that I want, I will purchase it because I want it. I can care less how they run their financial practices. Lets exercise some of sony's demons and as the same question.
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(Base="amount sold" x "cost of system")
Wii $1,632,750,000
PS3 $1,711,200,000
360 $4,183,600,000
360 (6-month) $1,394,530,000
At some point you need to stop looking at sold units (shipping, manufacturing, worker slowdown) and see how many people are spending how much of there own money to get a system.
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- My PS3 has dropped connection a few times during those exact games and it's only a month old. Not to mention how every single time you start or end a PS2 game the controller completely drops and you have to press the PS button.
Mind you I do like the PS3 so far, but I play my 360 a lot more still... and the Wii... kind of collects dust right now.
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I'm a Sony fanboy, I love my PS2 but the PS3 has been for far too long and wasting 600 bucks on a console that has no interesting games whatsoever is just a waste of money.
I mean Motostorm is the new ATV Offroad, I hated that game and Resistance is like any other shooter that just came at the perfect time since the PS3 didn't had any good games to begin with. The only interesting game right now is Virtua Fighter 5, which still doesn't justify to buy the system. The PS3 has exclusives but face it, like 80% of them have no official date. MGS4 is one of my most anticipated games and yet it still doesn't have an official date, (FFXIII also).
I'll just have to wait untill better games come and stick with my lovely PS2. (Which buy the way is owning the PS3/360 as I post this)
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What do you mean it doesn't count you imbecile? Of course it does, nevertheless it's still a console that's alive. The PS2 is the only last generation console in which is selling more than the PS3/360 which is even more embarrasing for the newer generation.
You must be to young to understand these things.
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Rot in your PS3 trash bin forum with the rest of you dumb fu*ks.
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