The lights are on
During its second quarter earnings call, Microsoft announced that it had sold 3.9 million Xbox One units to retail between the console’s launch and December 31, 2013. This is in addition to 3.5 million Xbox 360 consoles shipped to retail during the second quarter.
This number represents almost one million more Xbox Ones than Microsoft reports were sold to consumers during the same period. “The investments we are making in devices and services that deliver high-value experiences to our customers, and the work we are doing with our partners, are driving strong results and positioning us well for long-term growth,” said Microsoft CEO Steve Ballmer.
Microsoft’s second quarter revenue totaled $24.52 billion, representing an increase of 14 percent over 2012 performance. Operating income also rose, reaching $7.97 billion from $7.77 billion in 2012.
Our TakeMicrosoft assured us in August that it had a firm grasp of supply chain, and despite shortages in the first few days, Xbox One units were largely available throughout the holiday season for those looking. It would be a mistake to interpret this as a lack of demand given the NPD report, which shows healthy competition between Sony and Microsoft. Also relevant is that the Xbox 360 only sold 1.5 million units in its first quarter. The console market is a lot things. “Dead” isn’t one of them.
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