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October 06, 2008 12:00 AM

Ballmer: Xbox 360 'an Unqualified Success'

Windows IT Pro
InstantDoc ID #100469
Rating: (6)

It's a product line that has consumed tens of billions of dollars of R&D, money that can never be recouped. The most recent version of the product is so endemically buggy that it has suffered from an historic product recall whose value exceeds $1 billion. And despite a year-long head start, this product is ready to fall into last place as its competitors surge forward with more compelling offerings. So how does one describe such a product?

As "an unqualified success," of course.

At least that's how Microsoft CEO Steve Ballmer referred to the Xbox 360 video game system this week. In an interview with the Mercury News, the suddenly out-and-about Ballmer agreed that "Xbox is an unqualified success." He added, "No question about that. The product is selling very well. The Xbox is an absolute home run."

When confronted with the fact that Xbox 360 sales have actually fallen dramatically this year--the console was even outsold by one-time also-ran PlayStation 3 in six of the first eight months of 2008--Ballmer had no response. He did note, however, that recent price cuts had nothing to do with the console's lagging popularity. "All consoles start at higher prices," he said. "They always come down through the long cycle."

Ballmer added that the Xbox Live online service is "going gangbusters," and certainly that service is doing better than any competing video game services. But attempts to mimic the relative success of Xbox Live on the PC with the ill-fated Games for Windows Live service have failed. Recently, Microsoft announced that it would no longer try to charge for that service because, implicitly, PC gamers already have so many free online avenues for game play.

By the way, the Xbox 360 isn't the only consumer product Ballmer described as an unqualified success, though it may be the most far-fetched. He also cited Windows Vista, with over 180 million licenses sold, the Media Room set-top box software, and Office 2007.

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Comments
  • David
    4 years ago
    Oct 09, 2008

    Paul, I'm not sure why you keep harping on the PS3 outselling the 360 for the first six months of this year (in the US). The PS3's margin over the 360 in every month it lead the 360 but MGS4-driven June was so small as to be meaningless, and MS was supply constrained for almost all of Q1. And comparing the PS3's MGS4-driven lead in May 2008 to the 360's Halo 3-driven lead in September 2007 shows why MS hasn't been overly concerned. Sony didn't make up substantial ground on MS in the US this year, and with MS's price cuts this fall and Sony's commitment to no further price cuts this year, MS is going to be closer to the Wii than to the PS3 this fall, just like last fall.

  • Orin
    4 years ago
    Oct 06, 2008

    I have all three consoles (and a PSP) - the Wii doesn't have much you can play on it for a long time. Even Wii-Fit gets kinda tedious when you've finished all the mini-games. I've leant my PS3 to a mate because even with stuff like MGS, I just haven't been using it. The 360, for all its annoying noise, has good and exclusive games coming out with enough regularity that I keep playing it. I wish I got more use out of my other consoles - but great (exclusive) games are few and far between. I'll be getting Little Big Planet and WipeoutHD - but I don't think that will change which console spends the most time switched on in my house. Unqualified success? No. Console that you are most likely to be using if you own all three - yup.

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