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Microsoft on Xbox 360: We’re not dead yet!

Posted by Dave Mussman
April 7, 2008

Three ConsolesA curious report citing a retailer in Melbourne, Australia, has put a chink in the once-spotless armor of Microsoft’s Xbox 360 console. The quote reads:

“The Xbox 360 is dead. We are stocking it because of our relationship with Microsoft however all our energy and marketing is going into the PS3 and the Nintendo Wii unless Microsoft comes up with something new or additional marketing dollars. Halo 3 was big on the Xbox but that was about it. They have tried discounting and value add offers and even that is not working. We are even thinking of dumping the console all together”.

This seems like an astounding statement at first, but when you consider what has happened over the last year, maybe not so surprising after all.

While Xbox 360 was the darling of hardcore gamers during it’s first year on the market, many forces have conspired to turn the tide. Certainly the launch of the Wii and PlayStation 3 have had an effect, but Microsoft has done plenty to hurt themselves with the “Three Red Rings” fiasco and occasional Xbox Live outages. To top it off, the downfall of HD DVD has driven many to see PS3 as the “more bang for the buck” option.

Now, one lone retailer’s outburst doesn’t mean the end. A Microsoft spokesperson in Australia, in fact, was adamant about that point. In an interview with iTWire, Mariana Cidade, PR Manager of the Entertainment & Devices Division at Microsoft Australia, said, “We are happy with where we are in the market right now. We’re significantly ahead of where we planned to be this financial year, and selling well both on the software and hardware side.”

No, it’s not the end for the 360, but the recent trends certainly warrant keeping an eye on the situation, and it wouldn’t surprise me at all if Microsoft started gearing up for their next-generation console sooner rather than later.

Via iTWire

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Comments
Comment by DrKillJoy on April 7, 2008 @ 1:19 pm

I Love my Xbox and My PS3, both of them have problems, I got the red ring of death but Microsoft replaced it and it took about 3 weeks all total. My original PS2 had to be replaced because I had one the early consoles that scratched discs. Xbox live arcade is a hands down winner against Sony’s attempt. I am not a platform fan boy; as long as the games are good I will play them on whatever they are available for. The Xbox isn’t dead but I do think it will start losing ground to the PS3. Sony has some good titles lined up over the next few months that should drive sales along with the Blu-Ray victory. Why can’t the team that made the Sega Saturn make the next gen console and the industry just make games for one kick ass platform!

Comment by Keith Seiffert on April 7, 2008 @ 1:40 pm

The Xbox 360 is far from dead. Microsoft just needs to get off their Halo 3 laurels and push out some new content.

Also while they are at it, they could do with some marketing on all the other things the 360 can do, and do well. Such as streaming video from your pc, without even delving into the wonky media center interface.

If the public new what I do with my 360, and my home theater many of them would buy it just for it’s media capabilities. ;)

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