Thu. Dec 1st, 2022
Microsoft and Gamestop hope strong performance for the upcoming Xbox One X can help
enlarge / Microsoft and Gamestop hope that strong performance for the upcoming Xbox One X can help “lag” current performance for Xbox One software.

With Microsoft no longer reporting specific hardware or software shipments for the Xbox One, public market viewers are forced to use tidbits from other sources to try and judge the system’s performance against the console competition. GameStop provided one of those tidbits in its latest earnings report, noting that new and used software sales were both hurt by “lagging Xbox One sales.”

The mega-retailer, which has nearly 4,000 stores in the US and 2,000 more internationally, didn’t share specific breakouts for the Xbox One or other consoles, but said sales of new and used software increased by 3.4 and 7.5, respectively. percent had fallen. Microsoft’s “lagging” performance was the sole reason for that drop that the retailer publicly shared; GameStop mentioned the slow sales several times in a profit call yesterday. “In both new and pre-owned, we’re seeing under-performance in Xbox One versus PS4, which we believe is due to the upcoming Xbox One X launch,” GameStop CFO Robert Lloyd said in that call.

Yes, this report only shows sales from one (major) retailer and does not take into account direct software downloads via the Xbox One itself. Still, the “underperformance” can’t be a good sign for an Xbox division that’s been years behind Sony on hardware (though Microsoft has downplayed the importance of that relative race). For current Xbox One owners, poor sales relative to other consoles may continue to affect the presence of exclusive third-party products and cross-platform ports on the system, at least on the margins.

However, GameStop was more optimistic about the future of the console from Microsoft, thanks to the upcoming Xbox One X. “We also started taking pre-orders for the Xbox One X this week. And while it’s still early, we’re happy with the first consumer response to this powerful new console.”

Microsoft announced today that the Xbox One X is its “fastest-selling pre-order ever,” but it’s hard to gauge the significance of that statement without direct numbers to compare to (and only five days worth of pre-order data to go). ). That said, Microsoft’s Aaron Greenberg told Dualshockers this week that the company is going to make “as many Xbox One Xs as we can make” to keep up with “overwhelming” demand, so it looks like Microsoft is counting on the hardware refresh to make it happen. rejuvenate the whole system. console business.

Switch Sold Out “Continues Over the Holidays”

Elsewhere in its earnings report, GameStop confirmed that Nintendo’s Switch’s immense market success has lasted well beyond the initial hype surrounding its March launch. Switch’s hardware stock is sold out “within a few days of it being available in our stores and our websites,” Bartel said. “We think it will stay that way for the rest of the holiday.”

More than that, the Switch was “our most successful Nintendo launch ever,” said GameStop CEO Paul Raines, with stores selling five accessories and games for every piece of Switch hardware. The system helped increase GameStop’s hardware sales by 14.8 percent for the quarter, year over year, and overall sales by 3.4 percent.

On the software side, Bartel said sales of all that Switch software “helps offset some of the declines in Xbox One.” Mainly thanks to the Switch, new software sales are outpacing pre-owned sales at GameStop, a rarity given the usual reliance on high-margin stores for used game marketing.

“The Switch launch is one of the keys we’ve looked at all year to gauge consumer appetite for gaming,” Raines said. “Based on the results to date, the consumer appetite for gaming is healthy and we believe all consoles have growth potential.”

By akfire1

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