Microsoft Looks To Sell Another 25 Million Xbox 360 And Hundreds Of Millions Of Xbox One

1 Billion Xboxs

In an interview with OXM Magazine, Microsoft’s senior Vice President of Interactive Enertainment Business Yusuf Mehdi confirmed that Microsoft will continue to sell the Xbox 360 after the Xbox One’s release:

“We believe over the next five years we can break a 100 million unit installed base. That’s something we’re shooting for, it’s not a financial plan as such, it’s just rough numbers if you will. To sell another 25 million, half of those will probably come from replacements, but half will come from new buyers.  And the way we’ll break into those segments is by hitting new price points, getting new classes of entertainment to come with the Xbox, and breaking into new customer segments. So you’ll see the Xbox 360 continue to exist, even as we launch the next generation Xbox One.”

An announcement on the future of the Xbox 360 along with a significant dashboard update is expected to be outlined at E3.  Rumors thus far believe it is highly likely a $99 Xbox 360 will be announced.  Medhi went on to talk about his expectations how many Xbox Ones will be sold.

“Every generation, as you’ve probably heard, has grown approximately 30%,” he said. “So this generation is about 300 million units. Most industry experts think the next generation will get upwards of about 400 million units. That’s if it’s a game console, over the next decade.”

If you combine all three generations of the Xbox, Microsoft is look to sell over 1 Billion Xbox units.  Considering the expectation of the long shelf life of the next Xbox along with broader appeal of the Xbox One as an entertainment device, this seems entirely feasible.

  • Drewidian

    This is why Microsoft is going for the video/entertainment market with the partnership with the cable companies. The gaming market is great, but it is at best 300 million users in total including Nintendo and Sony. To get to a broader market, they have to go after the general television market and partner with the content distributors like the cable and satellite providers. To me the only way to get to these numbers is to have those distributors sell/lease the XBox One console as an alternative to their DVRs. Everyone wins in this scenario where the Cable/Satellite providers get to keep subscribers, Microsoft gets more consoles into homes than ever before, game developers get to push their software to more users, and consumers get an all in one experience and more games than ever before since it could represent an unprecedented market. If the cable/satellite providers do push the XBox One, its game over for Sony and Nintendo for this generation.

    • Bugbog

      My thoughts exactly! I’m a PC with dual-large monitors :) (don’t even have/use a TV any longer). But even I’m interested/fascinated with the Kinect/One combo for TV control!

    • Onenutmcgee

      Do you really think DirecTV or Comcast want to give a slice of their pie to microsoft? I doubt it very much. Really, cable/sat providers won’t gain any market share for that. Heck, most of the people I know have dropped cable or sat in favor of hulu and/or netflix.

      • Drewidian

        The problem for cable/satellite providers is that they are loosing subscribers in record numbers. Having a console/DVR that would lock users into their subscription for two years would do more for the short run while they figure out a way to address this issue, They could even have their own section in the store for exclusive apps/media that would represent an additional revenue stream the way Nokia,HTC, and Samsung have their own in the Windows Phone Store or Dell in the Windows 8 Store. Either way they have to do something and this is an alternative. It would have the potential to bring much more money than just a DVR rental.

  • The1nChicago

    The saying goes-“People in H-LL Want Ice Water”- too. However, unless MS markets the Surface RT to competes and lowers the price (with touchpad) to $299 it will NEVER happen.

  • disqustingtard

    Nice photo of Ballmer.