Article: Xbox 360 leads PS3 by 1m in Europe

[yobrenoops]

http://www.eurogamer.net/article.php?article_id=344133

Xbox 360 currently has a combined lead over PlayStation 3 of around one million lifetime sales across five key European territories - the UK, France, Germany, Spain and Italy.

That's according to GfK Chart-Track data seen by Eurogamer that shows like-for-like sales of console hardware across October and November.

The installed base totals suggest that Sony is catching up on Microsoft, which launched Xbox 360 over a year earlier than PS3.

But following a price cut in September, Microsoft's figures have jumped and the platform holder can be confident of holding its lead into the New Year.

Earlier this month, Sony Europe president David Reeves told MCV that PS3's installed base was 300,000 bigger than Xbox 360's "in PAL territories", which also includes countries outside Europe, like Australia.

On the same day, Microsoft claimed its "biggest ever sales month" in Europe for November, declaring a 124 per cent improvement year-on-year.

"Xbox 360 has sold more than seven million consoles in Europe since its launch in November 2005," the platform holder said at the time.

Sony declined to comment on the GfK Chart-Track figures when we contacted the company late last week.

Update 20.41 GMT: Just to clarify, the figures we've seen refer to Oct and Nov sales, but also show lifetime installed base figures, which indicate the one million lead.

Is this right? I'm sure Max has said a few times that the PS3 is still ahead. Is it just a fudge because they say 5 key territories?

[Snah]

Regardless of whether or not it's true, that doesn't necessarily mean it's very impressive (or even good) news for Microsoft in Europe.

The PS3 released a year and a half later than Microsoft did in Europe, and ever since that time it has been at a much higher cost.

It has only been recently that gigantic price cutting measures have induced sales in the region that has put the 360 ahead of the PS3. Make no mistake about it, Microsoft is losing big time $$$$ in Europe. The 360 costs roughly the same as a PS2 and has games packed in with the system. Microsoft's aggressive strategy in Europe is probably the result of the (previously held) strength of the british pound and the euro relative to the dollar. However, europe currencies have taken a huge beating over the past couple of months, which will most CERTAINLY hurt Microsoft's bottom line for their gaming business in Europe. In other words, they likely cut the price aggressively in Europe assuming that the currency over there would remain strong. If the past 6 months are any indication, they bet wrong.

Meanwhile the PS3 costs $200-300 more. If anything, the context that I've just described presents a rather depressing look at Microsoft's strategy in Europe where they're practically giving the system away and it's hardly made any traction against the PS3. They can't simply rely on cost cutting measures anymore as a means of inducing sales; there's simply no means for them to cut any further. They're already at bargain bin prices well below the PS3 and even the Wii.

Meanwhile, Sony has gigantic room to cut the price of the PS3 and induce sales. I'm sure that many Europeans are content with PS2 offerings until the PS3 manages to become more affordable; they certainly aren't adopting the 360 in droves.

Bottom line: when Sony moves on price, so will Europe towards the PS3 big time. Microsoft has used everything in their arsenal while Sony has yet to make any of its major moves. Unfortunately many people on message boards only look at the short-term rather than looking at the context surround both systems and what that potentially means for the long-term.

[Colglizity]

Originally Posted by Snah

Regardless of whether or not it's true, that doesn't necessarily mean it's very impressive (or even good) news for Microsoft in Europe.

The PS3 released a year and a half later than Microsoft did in Europe, and ever since that time it has been at a much higher cost.

It has only been recently that gigantic price cutting measures have induced sales in the region that has put the 360 ahead of the PS3. Make no mistake about it, Microsoft is losing big time $$$$ in Europe. The 360 costs roughly the same as a PS2 and has games packed in with the system. Microsoft's aggressive strategy in Europe is probably the result of the (previously held) strength of the british pound and the euro relative to the dollar. However, europe currencies have taken a huge beating over the past couple of months, which will most CERTAINLY hurt Microsoft's bottom line for their gaming business in Europe. In other words, they likely cut the price aggressively in Europe assuming that the currency over there would remain strong. If the past 6 months are any indication, they bet wrong.

Meanwhile the PS3 costs $200-300 more. If anything, the context that I've just described presents a rather depressing look at Microsoft's strategy in Europe where they're practically giving the system away and it's hardly made any traction against the PS3. They can't simply rely on cost cutting measures anymore as a means of inducing sales; there's simply no means for them to cut any further. They're already at bargain bin prices well below the PS3 and even the Wii.

Meanwhile, Sony has gigantic room to cut the price of the PS3 and induce sales. I'm sure that many Europeans are content with PS2 offerings until the PS3 manages to become more affordable; they certainly aren't adopting the 360 in droves.

Bottom line: when Sony moves on price, so will Europe towards the PS3 big time. Microsoft has used everything in their arsenal while Sony has yet to make any of its major moves. Unfortunately many people on message boards only look at the short-term rather than looking at the context surround both systems and what that potentially means for the long-term.

You could have saved yourself a future filled with carpel-tunnel and just said you were a Sony fanboy...

[yobrenoops]

Originally Posted by Colglizity

You could have saved yourself a future filled with carpel-tunnel and just said you were a Sony fanboy...

I don't that really helps does it?

Its very true that theres much more wiggle room with the PS3 than the 360. Didn't Max say in another thread that Sony have done projections based on the PS3 being at (and this is in dollars not pounds) $299, $249, $199 and it'd knock the figures out of the park!

[Colglizity]

Originally Posted by yobrenoops

I don't that really helps does it?

Its very true that theres much more wiggle room with the PS3 than the 360. Didn't Max say in another thread that Sony have done projections based on the PS3 being at (and this is in dollars not pounds) $299, $249, $199 and it'd knock the figures out of the park!

C'mon... develop a sense of humor, I own a PS3 and am rooting for it to catch up.

[yobrenoops]

Originally Posted by Colglizity

C'mon... develop a sense of humor, I own a PS3 and am rooting for it to catch up.

Sorry. Being massively hungover after a night at the local Deustche Weihnachtmarkt on beer steins has seemed to remove my sarcasm-detector.

[AM-MAN]

U r all forgetting the fact that u can buy all the x-box games for the price of one PS3 game (my 25 games cost me as much as a used car ). Still people who cant afford games at the current prices are opting for the hacked PS2 over the hacked x-box .
The strange thing is that the game publishers are failing the system that gave them what they have always been crying for in favor of the hacked ones.

This bring us to the conclusion that :
a: Hacking does not bother game publishers as much as they claim .
b: Hacking the ps3 will result in a flood of sales that i think will take over the wii ,not to mention the x-box .
c: Price seems to be the deciding factor in the market .Besides true gamers ,the masses don't really care which console is stronger nor do game publishers .

[Snah]

Originally Posted by Colglizity

You could have saved yourself a future filled with carpel-tunnel and just said you were a Sony fanboy...

Posting facts = Sony Fanboy. Gotcha.

[Psx0005]

Originally Posted by Colglizity

You could have saved yourself a future filled with carpel-tunnel and just said you were a Sony fanboy...

I'm a Sony fanboy

[yobrenoops]

....and seeing how this thread has picked up, I'm guessing our American friends are all waking up!

[heathward]

Originally Posted by Snah

Regardless of whether or not it's true, that doesn't necessarily mean it's very impressive (or even good) news for Microsoft in Europe.

The PS3 released a year and a half later than Microsoft did in Europe, and ever since that time it has been at a much higher cost.

It has only been recently that gigantic price cutting measures have induced sales in the region that has put the 360 ahead of the PS3. Make no mistake about it, Microsoft is losing big time $$$$ in Europe. The 360 costs roughly the same as a PS2 and has games packed in with the system. Microsoft's aggressive strategy in Europe is probably the result of the (previously held) strength of the british pound and the euro relative to the dollar. However, europe currencies have taken a huge beating over the past couple of months, which will most CERTAINLY hurt Microsoft's bottom line for their gaming business in Europe. In other words, they likely cut the price aggressively in Europe assuming that the currency over there would remain strong. If the past 6 months are any indication, they bet wrong.

Meanwhile the PS3 costs $200-300 more. If anything, the context that I've just described presents a rather depressing look at Microsoft's strategy in Europe where they're practically giving the system away and it's hardly made any traction against the PS3. They can't simply rely on cost cutting measures anymore as a means of inducing sales; there's simply no means for them to cut any further. They're already at bargain bin prices well below the PS3 and even the Wii.

Meanwhile, Sony has gigantic room to cut the price of the PS3 and induce sales. I'm sure that many Europeans are content with PS2 offerings until the PS3 manages to become more affordable; they certainly aren't adopting the 360 in droves.

Bottom line: when Sony moves on price, so will Europe towards the PS3 big time. Microsoft has used everything in their arsenal while Sony has yet to make any of its major moves. Unfortunately many people on message boards only look at the short-term rather than looking at the context surround both systems and what that potentially means for the long-term.

great post. i enjoy reading financial analyses and marketing tactics when it favors my beloved PS3. also, i had some glue wine (glogg?) the other weekend and it was fantastic. never had it before. it was warm with cinammon sticks in it. so i went and bought some at my high-end liquor store...and i think it is straight off the boat from germany. i live in milwaukee, wi...which has an extremely large german and polish background. i'm both