Xbox Series S/X: Thread 03

[Neon Ignition]

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[Cassius_Smoke]

On the other side of the fence, Sony has sold 13.4 million PS5s.

https://twinfinite.net/2021/10/sony-playstation-financials-q2-2020/

[MartyG]

That moment when you get confused between lifetime sales and quarter sales.

[nonny]

On the other side of the fence, Sony has sold 13.4 million PS5s.

https://twinfinite.net/2021/10/sony-...cials-q2-2020/

Sold to retailers, though granted to sell through is almost immediate. That said it looks like in the US big chains like Walmart are stockpiling them for the busier shopping season, lure in shoppers etc...

Plus scalping is still a big issue. At least in the UK, in the past few weeks, more units seem to be coming through now.

[Cassius_Smoke]

That moment when you get confused between lifetime sales and quarter sales.

I was comparing the LTD number of 8.3M above which is lifetime sales, with Sonys lifetime sales of 13.4M

As Nonny says, its sold to retailers and how many are in Scalpers hands? Unknown. Although the same can be said for Xbox lifetime sales too.

[Neon Ignition]

Yep, even if they go into scalpers hands there aren't millions of both systems sitting in warehouses unused. Ultimately they're produced, shipped and sold on the basis of demand, the status quo from last gen is clearly still in place.

[nonny]

Yep right now it's fair to say both systems are in short supply and being scalped / sold through ... nothing really seems to be improving from launch, or if it has its minimal.

[Neon Ignition]

It's nuts that we got hardware revisions three years into the last gen to help keep sales momentum going. This gen we're a year in and both systems are still in effect 'launching'

[MartyG]

They're not currently being sold on the basis of demand at all, given demand is outstipping supply.

[Neon Ignition]

True, but likewise Microsoft isn't going to be ordering 13.4m Xbox Series S/X per nine month cycle to be manufactured and shipped either. It's pure napkin math but if I'm right MS seems to be monetising Xbox better than Sony is monetising PlayStation though which I assume is down to Game Pass

[MartyG]

Silicon manufacturing leadtimes are now at nearly 12 months - even if MS wanted to increase it to that level, they wouldn't be able to. Given demand at the moment, if they could ship that many, I've no doubt that they'd sell out.

looking at the average eBay scalping prices of the last 50 sold auctions

Xbox Series X average selling price: £584.40 - Low £400 High £700
PS5 Disc edition: £584.90 - Low: £450 High £719

So the scalpers are still making over £100 per unit after fees. It's definitely dropped off a little bit, but demand will ramp up again for Christmas so I'd expect to see that average creep up over the next few weeks.

[Neon Ignition]

Yep, we're definitely going to see price inflation again very soon. It's almost a shame there isn't a more dry software line up as there'd be a nice profit to be made by selling my PS5 on and getting one down the line

For MS though, it's much like every gen. Until they sort their brand appeal outside the UK/US they will always have limits to their sales. It made more sense in the early days but given the extent of the global use and appeal of companies - particularly Microsoft - it's interesting that it's still something yet to be changed

[nonny]

I've been in the hunt for a PS5 recently and noticed CEX pricing has dropped, by £20... and they will now give you £500 for a boxed disc version. That's both disgusting and insane that you can turn a £50 profit from a store just by handing over one you just picked up.

Until Sony and MS fix the scalping issue it's just the way it's going to be and in this market neither can make them fast enough.

Thankfully I just got a PS5, so it is possible to pay RRP, you just have to watch stock like a hawk.

At least with Series X you can buy direct from Microsoft which means you can avoid some of the crap practices places like Game are employing such as forcing you into larger bundles and not holding as many units of just the console standalone.

I find all that shameful so refuse to buy from them.

As for Xbox market appeal. Things are changing outside of the main US/UK bubble. Japan is seeing huge growth mainly through the Series S... and countries like Mexico and Brazil, where console and game pricing is exorbitant is seeing many either get the Series S or simply buy in to game pass and cloud streaming.

Xbox can gain brand loyalty / acceptance not just through console attach rates this time and that looks like a smart move in those markets.

[nonny]

Gotta love hitting £25 in MS rewards just days before Forza Horizon 5 hits early access for VIP. Just bought the full VIP and DLC expansion bundle for a tenner.

Access begins on Nov 4th...

[nonny]

https://www.gematsu.com/2021/10/sega-and-microsoft-announce-strategic-alliance-to-create-new-titles-for-sega-in-next-gen-development-environment-built-on-azure

Sega and Microsoft have announced a strategic alliance that explores ways for Sega to produce large-scale, global games in a next-generation development environment built on Microsoft’s Azure cloud platform. The alliance forms a key part of Sega’s mid to long-term strategy, allowing it to move forward with its “Super Game” initiative to develop new and innovative titles focused on “global,” “online,” “community,” and “IP utilization.”

The companies have agreed upon the foundation for this alliance and will look to build further technological evolutions through mutual cooperation, with areas such as ‘network infrastructure and communication tools required for global online services’ being a key priority. And by shifting to a next-generation development platform, Sega can effectively adapt to diversifying work styles and potential infrastructural changes.

“With the world now more connected than ever following the widespread deployment of 5G and cloud services in recent years, consumers can more easily enjoy high-quality entertainment content at any time,” Sega said in a press release. “Within this highly connected environment, the ecosystem surrounding the games industry continues to evolve and expand as more sophisticated tools and technologies become available. As such, video games continue to grow as a major medium for gamers globally, with access to a vast range of gaming experiences and communities becoming more diverse and attainable. This proposed alliance represents SEGA looking ahead, and by working with Microsoft to anticipate such trends as they accelerate further in future, the goal is to optimize development processes and continue to bring high-quality experiences to players using Azure cloud technologies.”

Find comments from Sega and Microsoft below.

Yukio Sugino, President and COO, SEGA Corporation

“We are very pleased to announce today that we are considering a strategic alliance with Microsoft to help develop SEGA’s new ‘Super Game’ initiative as well as build a next-generation game development environment. By considering a strategic partnership with Microsoft, we seek to further advance our game development so that our titles can be enjoyed by fans all over the world; in this regard, we aim to build an alliance that utilizes both SEGA’s powerful game development capabilities and Microsoft’s cutting-edge technology and development environment.”

Sarah Bond, CVP, Microsoft Corporation

“SEGA has played such an iconic role in the gaming industry and has been a tremendous partner over the years. We look forward to working together as they explore new ways to create unique gaming experiences for the future using Microsoft cloud technologies. Together we will reimagine how games get built, hosted, and operated, with a goal of adding more value to players and SEGA alike.”