Xbox One Production Sees a Slowdown in Face of Surplus

By Published April 28, 2014 at 12:17 pm
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Microsoft's (NASDAQ: MSFT) Xbox One launched on November 22, 2013 in 13 geographic locations. The company initially reported 1.2 million units shipped in 3Q13 with 5 million units in 1Q14, for a total of 6.2 million Xbox One units shipped to-date; these metrics are sales to retail channels and do not tell us how many have been put into consumers' hands. Microsoft previously noted in the end of January that 3 million units had been delivered to customers.

To put that into perspective, the PlayStation 4 (NASDAQ: SNE) has shipped 7 million units in total as of April 6th, 2014 and Nintendo's Wii U has shipped 5.86 million units as of December 31, 2013. The Wii U launched on November 18, 2012 and has had a full year's head-start on Microsoft and Sony; these sales figures led to major losses for Nintendo, who reported an expected loss of $240mm for 1Q14. The company previously reported that it expected a $536 million profit.

Ouch.

As for Microsoft, the recent earnings call voiced that the Xbox One would cease entirely or significantly slow in manufacturing output. This is expected for a console entering its second year of life -- demand has dropped from 2013 -- but there's no argument that Microsoft has been thoroughly lashed by Sony thus far this generation. Microsoft CFO Amy Hood indicated a "channel inventory drawdown for Xbox consoles," which translates to a slowing or cessation of actual manufacturing of units due to surplus in stores.

For the curious, the previous consoles have shipped in these counts:

  • Xbox 360: 80 million, as of October, 2013.
  • Playstation 3: 80 million, as of November, 2013.
  • Wii: 100.9 million, as of December, 2013.

- Steve "Lelldorianx" Burke.

 

Last modified on April 28, 2014 at 12:17 pm
Steve Burke

Steve started GamersNexus back when it was just a cool name, and now it's grown into an expansive website with an overwhelming amount of features. He recalls his first difficult decision with GN's direction: "I didn't know whether or not I wanted 'Gamers' to have a possessive apostrophe -- I mean, grammatically it should, but I didn't like it in the name. It was ugly. I also had people who were typing apostrophes into the address bar - sigh. It made sense to just leave it as 'Gamers.'"

First world problems, Steve. First world problems.

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