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article imageMicrosoft First to Reach 10 Million Console Sales, But Announcement Rife With PR Spin

article:254740:27::0
Chris
By Chris Hogg
May 15, 2008 in Business
By Chris Hogg.
Microsoft is patting itself on the back for being the first company to sell 10 million video game systems, meaning it beat out both Nintendo Wii and Sony PS3 in the U.S. This would be a milestone, if it weren't for all the spin.
Digital Journal -- A lot of of media are busting at the seems with news that Microsoft has sold 10 million Xbox 360 consoles, beating Nintendo and Sony to the important milestone. The news was likely picked up after Microsoft issued this press release announcing the sale mark.
Don Mattrick, senior vice president of the Interactive Entertainment Business in the Entertainment and Devices Division at Microsoft, lends his voice to the release, saying, "This year will be the largest in the history of the video game industry, with Xbox 360 leading the charge in the U.S. and abroad. History has shown us that the first company to reach 10 million in console sales wins the generation battle. We are uniquely positioned to set a new benchmark for the industry.”
You can't fault the company for being proud of its achievement, but there are a few really tiny facts that make a huge difference in this story: Microsoft started selling the Xbox 360 an entire year before both Nintendo Wii and PlayStation 3. That's right, Microsoft launched the Xbox 360 in November of 2005 and Nintendo and Sony launched their consoles a year later in 2006. So with a year head start, why wouldn't Microsoft reach 10 million console sales in the U.S. first?
Then Microsoft gets very lucky when a research manager at IDC gushes about the console for their press release, saying, “Reaching an installed base of 10 million consoles in the U.S. is a significant achievement and an essential milestone on the road to market leadership.”
We've got nothing against the Xbox 360. In fact, we think it's a great console. But this type of fluff is just outright PR spin. Market leadership? Really? Let's take a look at the real numbers.
Market research company NPD says Nintendo has actually sold 8.8 million consoles in the U.S., while Sony has sold 4.1 million PS3s. So that means Nintendo is only 1.2 million away from Microsoft's milestone and they've done that despite the fact Microsoft has had an extra year on market.
Microsoft also gloats about its global sales reaching 19 million consoles in the same press release in which it claims it's set an industry first. That would certainly be something worth applauding, but another little fact Microsoft left out is that Nintendo actually has sold more consoles worldwide. So when Microsoft claims they've sold more than any current-generation console, they're not counting the whopping 24.45 million Wii consoles Nintendo has sold worldwide. They certainly didn't let a few facts get in the way of a good story.
In a follow-up with Shacknews, Microsoft said it did not take the Wii into account when it claimed the Xbox 360 as worldwide console leader. Oops.
Well, don't worry about it Microsoft, we understand you made a small error by leaving out half of your global competition. And forget about the fact you actually forgot to mention Nintendo has sold better than you globally. Those are moot points and get in the way of your announcement so we understand.
As of March 31, 2008, the global sale count (courtesy of Shacknews) is actually:
1. Wii - 24.45 million units
2. Xbox 360 - 19 million units
3. PlayStation 3 - 12.85 million units
article:254740:27::0
More about Microsoft, Xbox 360, Million, Console sales
 
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