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.