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A company like Microsoft has a fiscal year to end. As the end of that fiscal year approaches, the company realizes that only 9 million units of their product have been shipped (sold units are something to bother their heads with later) out of the 10 million target. The company then “stuffs retailers” with the extra 1 million units and they can happily say they've ended their fiscal year. |
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109 Comments
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sounds like a sony fanboy created rumor to me. i dont believe it
According to a post on Softpedia, there are rumors..
Well that shows it then eh!, what a pointless news post about a stupid rumor on some site noone cares about.
If you search other sites im sure you will see just as many RUMORS about the other console sales etc to.. POINTLESS RUMORED NEWS..
go to http://www.vgchartz.com/ngwars.php for real charts.
Yeah there is absolutely no proof at all, whats a bunch of garbage, I can't believe you guys even post this stuff.
there's no proof that the 10 million+ figure is correct either..
boring OLD NEWS.
They imply that %u201CMicrosoft threatened to withhold copies of its Vista operating system--released in January--from retailers who didn't play along and choke down excess Xbox 360 inventory.%u201D
IT'S CALLED MONOPOLY... we should know soon from the justice department. AGAIN.
Is it possible that this article is tip toeing around the thought that Microsoft may be including replaced 360s due to malfunction as a unit sold?
Honestly, companies often try things like this - it wouldn't surprise me that much. Especially with Microsoft's track record to do anything to win.
u just carnt take it.................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. CAN YA !!!!!!!!!!!!!!!!!!!!!!
Isn't this how sony has been reporting it's "sales", by counting units shipped to vendors and not actually sold to consumers ?
So what's the big deal *IF* MS is doing it ? As far as MS is concerned, when they SELL a unit to a vendor, it's sold, they got their money, now it's up to the vendor to do their work....
Yes, M$ did their work, but that doesn't represent how many units are in the hands of the consumer. So, in a way M$ "sold" it, but no-one owns it yet, thus as long as supply and demand are in effect, they didn't really make a sale. It makes their numbers look better for the fiscal year, but it doesn't mean the 360 is any more of a success.
And btw, $ony reports "sales" by number of units sold. However, you are correct that more often they report "shipped" which is, you guessed it, the number leaving their warehouses.
who cares if MS cheats its numbers,
people will decide which system is successful just like in any old console war.
snes vs genesis/32x/cd, game gear vs gb/gbc, master system vs nes, ps1 vs n64 vs saturn, ps2 vs dreamcast vs xbox vs gamecube.
the result will show in few years. let them battle coz it us the gamers that always wins, many games will be made for us to play. chill out, enjoy! loved the high def part. if only nintendo participated in the high def competition, imagine 1080p legend of zelda pixel per pixel. and of course all nintendo character franchise would be welcome.
i could see it happening.
Im sure Nintendo will come out with the Wii HD or Wii Advanced...or whatever...but it will include HD. I bet they are waiting for technology to get a lil cheaper and release the Wii, but in HD. That will allow them to keep the console at a lower price and people will have no problem in buying another one.
Think of the gameboys and how many remakes they had of it. Nintendo DS to the DS lite.... a lot of people bought both since the price was affordable. expect the Wii to do the same thing.
Even if it were true, the 360 still has superior games to that of the PS3. So yes, I would still buy it. I'm loyal to the company that gives the best gaming experience, and right now, it's Microsoft, hands down.
They never change.
Microsoft is *****ing retarded. They make *****ty ass consoles. Sony makes better consoles then the *****ty XBox 360 is one joke a system.
WoW QJ way to post only half the content of the original source. This all Started because a financial Blogger who works for APPLE... MS greatest competitor accused MS of force pushing unwanted units to retailers, and threatening to withold VISTA shipments if they didnt take the Units.
Several other sources then jumped in, and said that they felt that the guys blog was INCORRECT. And that he is blowing it out to be a big deal for no reason. They even went on to say that what he was posting about was something that EVERYONE KNEW ABOUT MONTHS ago. They also said that The author claims that MS force pushed millions of consoles out.
But THEY beleive MS only pushed out thousands. a Common business practice for hardware companies because UNLIKE software.... Hardware has increased shelf life, where software is usually obsolete after a few months. They then went on and said that SONY does the same exact thing, and of the 3 console companies only NINTENDO is the only one not doing it "currently".
""Microsoft sold-in 10.4 million 360's by December 31," noted Pacific Crest Securities' Evan Wilson. "It seems very unlikely that Microsoft stuffed the channel to beat their 10 million forecast."
Wedbush Morgan Securities' Michael Pachter was similarly skeptical. "It's possible that Microsoft has shipped a few hundred thousand consoles more than retailers want, but not possible that it shipped millions," Pachter told GameSpot, adding, "Microsoft would never stuff the channel to make numbers look better. I really don't buy this at all."
Lazard Capital Markets' Colin Sebastian called it "old news," but not what he would characterize as channel stuffing. "Microsoft's guidance for Xbox shipments during the first half of 2007 disappointed some investors, but the reality is they already had enough units in the channel to fulfill much of the demand," he said.
Nollenberger Capital Partners' Todd Greenwald said Ehrenberg's issue with Microsoft was legitimate, but also old news.
"Sure Microsoft probably over-shipped the channel," Greenwald said," but we knew that three months ago… To me, and most of Wall Street, it was pretty clear what Microsoft had done. And Sony's done the same thing. Nintendo's the only one who isn't doing it, but that's not to say they won't do it again in the future."
Greenwald also pointed out that it's different for a hardware vendor to stuff the channel than a software publisher because systems have a much longer shelf-life and will eventually sell. On the other hand, Greenwald said if software doesn't move in the first month, excess inventory will quickly suffer price cuts and returns.
Bogus or not bogus?: Bogus that this is a big deal. Companies play semantics with "units shipped" and "units sold" all the time, we essentially knew about this months ago, and one man's channel stuffing might be another man's slower-than-expected holiday sales season."
For more accurate info....
Also
Ehrenberg bases his accusation of channel stuffing primarily on postings from another financial blog, the Apple-focused Blackfriars' Marketing. The first post was made last December, and questions Microsoft's ability to hit its publicly stated target of selling 10 million Xbox 360s by the end of 2006.
Apple and M$ hate each other but they rarely compete against each other. Apple is hardware and M$ is software. Yeah the zune is against the ipod, but really the ipod has NO competition. As far as computers M$ makes software apple makes hardware. Apple hates M$ because Bill gates stole the idea for windows from steve jobs, period.
In the Computer relm they compete all the time.... WHo do you think is teh driving force behind the PC market? or Was??
"who do you think the driving market is? or was?"
I hope you dont think Apple is in the lead with their measly 6% share of the PC market.
Please point out where I said Apple was the one in the lead... and ill give you a cookie worth $1 mil.
for all those people saying sony is only counting the ones leaving their warehousese, you are talking rubbish... even on this site the european launch figures have been going up reporting things like the UK has sold 165,000 out of the 240,000 shipped etc. so they have been clear about the number shipped and the numbers sold.
"he Apple-focused Blackfriars' Marketing."
That should give you a REAL clue right there about how legitimate these claims are.
Apple may hate M$, but why would Blackfriars' Marketing lie for them? Also as long as they ahve evidence to prove it, these claims don't seem so farfetched.
I thought this was already known? Microsoft has always referred to their shipped numbers as their sold numbers. Most manufacturers do(Sony sometimes states both). To Microsoft, the number that they ship out is sold to them. Retailers buy the consoles from Microsoft, so Microsoft already has the money for those shipped consoles. By definition, technically, those consoles are sold.
I was wondering how much do retailers buy the consoles for?
but i got flamed for saying it.
SONY AND MICROSOFT refer to shipped numbers as sold. 360 fans so quick to talk about SONY SHIPPED NOT SOLD...when MS does the same thing!!!!!
also.... 360 fans really love nexgenwars. i know the 360 is winning more on that site.... is that the reason why?
AND... QJ is just a delayed VGcharts.org site. Every article there makes it to this site the next day....
SONT refers to Units SHIPed from the FACTORIES TO distributors when they post numbers. MS refers to units shipped from distributors TO retailers.
it may be a rumor,,
but i think it's real
because microsoft only thinks about the money,,
and they want to be better than sony,,
so this rumor is probably true
Shut up Vietone.
Believe what you want, but STFU here.
maybe i was just pissing myself in the excitement that maybe Microsoft didnt actually sale 10 million consoles because im a pissy little sony fanboy. Sorry
I have all 3 and the only thing i like about the 360 is grafix and being able to play ur own music during a game....I believe this rumor...
Hey finally a smart sony fanboy that actually came up with a good rumor instead of making a dumbass of himself. He actually may be the only smart sony fanboy in the world OMG!!!
Yep, that numb nutz that impersonates Mister Common Sense definately falls into that group.
What's he trying to prove anyway? How desperate he is?
That 'Numb Nutz' got MCS to post less and tone it down when he does, which is what most of use wanted so I for one am glad he came around!
yeah, and you're a peice of sh*t too ass hole.
Rot in your PS3 trash bin forum with the rest of you dumb fu*ks.
This is a trick that all the system producers do. Sony has been doing it since launch day for the PS3. They have shipped rougly 2.8 million units but have sold only around 1.8 million. Example. over a million ps3s shipped to japan and only 800000 sold according to actual sales figures. Nintendo will do the same thing when the wii sales start to slow and the system actually exists on store shelves. Bottom line is that when a system is shipped to a store then that store has bought it and the manufacturer has its money made. The store would not have bought it if it didnt see a need to have it in stock. Kinda like what you are seeing with the ps3. The local gamestop here has a stack of about 30 ps3s (60GB models) on the floor and cant move a single one, Sony counts those systems as sold, as they already have the money from the store in their pocket.
If you want to know actual sales figures then you need to get them from the sources that track those sort of things such as media crate.
But then again all you fanboys are going to bash MS for reporting that they have sold 10 million units to stores anyways so I guess I am just wasting my time for nothing. The thing about it is that Sony has had to do that sort of thing since launch.
My 2 cents.
how do u know what sony thinks? and what sony considers as sold or shipped? i have seen sony talk about both figures, sony have said they hoped to ship 6 millions ps3's by the end of the month..that is different to sold. i dont think that sony has actually official announced sales figures of the ps3, but in europe figures where talked about in actuall sales from stores (165 000 in UK alone sold out of 200 000 shipped) im quite sure sony would count the actual sales to customers. shipping a bunch of consoles is not really a sale..even if they have been bought by the store - it cant count as a sale.
I for one don't think its true it seems as if Microsoft haters are trying to convince everyone that MS sales are not that great. Where in the reality the motivation for this attack may be to minimize the lack of market share for both apple and sony products, especially sony.
I think if we wanted to prove this we would simply go to the nearest retailer and ask if they usually carry more xbox360 at the end of MSs financial year than normal. We should however caution any information because the system is only a year and a half old and a trend could never be established.
I for one want to bring up the problems of people buying their second xbox360 and simply throwing out their first broken unit. I am one. Others out there bought a second(or third) system due to inability to get theres fixed (due to warranty expiration or hacking), and these numbers are unchecked.
Your point is good about the broken units and the people who bought a new one. Nobody cant count them as actual sales because nobody wants 2 of the same console do they?
So the question here is how many broken and replaced ones are out there? maybe half a mill I dont know. One other question is now that peoples warranties are expiring since its been a year and a half now plus the hacked ones, knowing the overheating proplems of the unit and its possible death at any time one only wonders how many xboxs have been really sold.
If this story holds in the end then what stops MS to push the new Elite xbox 360 shipped units in the SOLD part of their sales figures? Is this going to be a joke all the way to the end for MS Fans?
Anybody who buys a new XBOX 360 to replace a broken one is a moron. Even if it's out of warranty, MS charges $140 to fix a broken one, including shipping both ways. You get your same one back with new components (usually a motherboard) and new one year warranty. Repaired units are NOT counted as sales or units shipped. There's no reason MS would not repair a unit, even if it's modified.
Why pay $300-$400 for a new one? You didn't as you don't even own an XBOX 360. Just another gaystation fantard trying to make it seem likely their XBOX 360 will break. Sony's going to outsource production to the same company that makes XBOX 360s, so the PS3 will soon have similar build quality.
This worked for sony too. How many of the 110 million PS2s had disc read errors after a few years? Does sony even offer to fix out of warranty consoles at all? Probably 30-40 million of the PS2s sold are broken, and with most owners already having a large game library, they bought new ones. Just do a search of "broken PS2" on ebay and see.
"I for one don't think its true it seems as if Microsoft haters are trying to convince everyone that MS sales are not that great."
Hey, isn't that what you're trying to do now Mr. MS hater?
I've heard rumors from n4g as well. www.vgchartz.com has microsoft under 10 million units sold and they seem very reliable with their unit numbers. Nexgenwars isn't accurate at all.
http://www.vgchartz.com/ these look real.
here is a rumor i heard: who gives a f*ck. i dont care how many they sell or if they "win" the console war. i win because i bought a fun gaming console.
Yea who cares what one wins... as long as you have one you like and think is fun you don't need to fight over what one YOU THINK IS THE BEST.......It's called an OPINION people....
LOL @ ps3 only selling 2.8 third place FTL!!
dont be fooled by nexgenwars.com..that counter is a load of crap. in the early weeks of the wii's launch the figures were insanley high - like 2 million sold in the first few weeks..utter bs, they then realised it was way off, and reduced it to less than 1million.
oh my bad. vgcharts has it at 1.8 and not 2.8 thank for the info lol
doesn't surprise me.
Also, Nexgenwars.com SUCKSS!!! THey are so off it isn't even funny.
Use http://www.vgchartz.com/ngwars.php
nextgenwars.com is owned by a ***** 18 year kid who doesnt know shlt and comparing to professional chart like vgc, what a *****ing noob
nexgenwars is totally false.
I cant find the link now but they removed it. They had a line graph showing the progressive sales of the consoles. Both the PS3 and Wii had a steady increase while the Xbox360 had a huge drop.
How does a console sell and then suddenly drop by over 100k? Thats because they dont get their numbers from sales figures, they have a counter.
rumors have been about for a couple of weeks now and to be honest this rumor is proberbly true, but what about all the replacements for faulty, seeing how they like to break their must be a large amount of replacements which is included in the figures.
I cant see what it matters for me as a buyer if the sale is 10 million or 9 million. It would matter if the sales were under 5 millions, in the sense that game developement wouldn't be guaranteed. But ultimately I would have to figure out what I want from a product and select the one that I feel has the best value for me.
Even if these rumors about Microsoft stuffing channels are true or not, one thing is for certain: Microsoft claims to have sold over 10 million units since December 2006.... fast forward to today (4 months later), and they haven't even come close to breaking 11 million.
Their projected sales are supposed to be 12 million by July, this is looking very bleak for Microsoft, since Nintendo sold about 6 million in about 4 months.
I don t trust nextgenwars. I no this is a bit offtopic be the numbers automatically go up every second or whatever. And the 360 sales keep going down not up.
This is common across all markets. No one ever wants to have a bad quarter so if they sense a bad quarter comming they "stuff" the channels a little to pick it up.
However, it comes at a price. If Best Buy is "stuffed" with unit for one quarter are they going to buy the next quarter? NOPE!
It's a give and take.
Then, if they screw up they go to real sales number.
the xbox 360 has been out for a year and four months not four months
Damned Mycrapsoft, always cheating and doing dirty moves, I hate'em all!
Where did you get mycrapsoft? It's spelled S O N Y.
no mankind got it right. i think you need webster's dictionary for retards
This is what xboys say sony is doing. I was in best buy yesterday. There were no Wii's at all, 1 ps3, and a whole lot of 360's in a big stack. I would say it's more than a rumor
its funny how xbox fanboy blames sony fanboys for starting the rumor. It all about facts.
sony doesnt want to compete with mircosoft anymore...as long as they help sell there TVs.
with the elite coming out with hdmi...sony will sell more TVs.Make sense
Everything is fitting nicely into place for Sony's Marketing plan here lol. They predicted the release of the Elite, and this is so they can as you said sell more Sony Bravia TV's. They just signed a deal with Macdonalds to give away 500 Sony Bravia TV's in the UK and they have already given away 2000 in London, with all this publicity and good reviews for their TV's they will be making an excellent gross profit.
I don't know much about the actual figures, but I work in the electronics department at Walmart and I can verify that we were flooded with 360's prior to the end of December and we still have a bit of surplus. In other walmarts in the next couple towns over, they had even more than us.
I don't know anything about the vista withholding rumor, but I can verify that MS pushed tons of consoles into stores, and they still haven't all sold. Not sure what that says about the installed base of 360's but if it's not 10 mil, it's probably still pretty close to it.
i work at the electronics department at walmart too, and we keep selling out of all systems. its like a weekly shift in sales. the only thing we have troubles selling is the core packages because i tell everyone its cheaper to buy the premium.
get some better jobs .
Have to say that this seems to be true for me.
Well, I have just been waiting for an article like this. Microsoft hasn't won anything yet! They are just trying to scam us into thinking that they're number one! Nintendo might really win! Of course, with PS3, Sony might have some stiff competition, but I think that Sony was at least honest about their sales. Nintendo provides the number of units sold, and count's that as their sales, although we the people know how well the Wii has been selling (perfectly, for those 5th gen games who just crawled out of the basement with their N64's and PS's and Dreamcast's)! So, I think that Microsoft will eventually fall behind in the mud when it all comes down.
"Sony might have some stiff competition, but I think that Sony was at least honest about their sales."
Guess what moron, Sony does the same thing! Manipulate sales numbers to impress consumers and investors. If sony does it, MS has to too. Why give away an advantage simply because many consumers don't seem to care if numbers are inflated.
Besides, this is blown way out of proportion. It only affects the number by maybe 100,000, which easily fits into the retail channel.
Sony gives out both figues, the number shipping and the number sold, e.g. 'We are expecting to ship 6,000,000 by March' but they have given out the fugure on how many they have actually sold which is around 3,200,000
well you can't say that this is a rumour that "Soniers" started, Micrapsoft did put the rope around his own neck, and besides we should thank Micrapsoft for helping us sell more Sony HDTVs by adding HDMI to the sexbox 360 elite
i own a firmware modded 360 with plenty of games, and i am completely justified in saying that the 360 is a piece of *****. the only good games that have came out are Gears and COD2, out of many i have played. microsoft is also overpricing like *****es $180 for a 120 gig HDD???? pure *****.
I agree!
So the PS3 REAAALLLLYYYY must suck to you.
You're probably pissed you modded your 360 and it broke now you can't get it fixed. Tough sh*t, don't steal next time.
you can start hating,, but look at the facts
a ps3 is €600
it includes:
-60gb
-wireless controller
-blu ray player
-card readers
-usb ports
-build in wifi
-internet cable
a 360 is €399
it includes:
-wireless controller
-Headset
-20 GB HDD
-HD AV Cable
-i don't know what else
and if you want to play HD DVD
you got to pay an extra €200
so they're both €600
i know that Xboxlive is better than than what the ps3 offers,, but there is no web browser on the 360,,
and my friend has a 360,, great games,, but he says that the 360 breaks quickly
everything is made of plastic
the 360 doesn't sucks but i prefer the ps3
i know you start hatin,, but i don't care
Go away. People are sick of price comparisons. Depending on what you think is necessary, any console can be cheaper.
The comparison is so retarded....
first of all the 360 has USB ports too...
And MS didnt WANT to use WiFi... they use their own wireless technology, whicgh is WHY Sixaxis controlelrs DROP connection a LOT, and 360 ones never do.
Listen, I've had a PS3 since well before Xmas.. I have 2 sixaxis controllers, have completed Resistance and Motorstorm and I'm 30 hours into Oblivion and I've never had a controller stop responding on me, even once.
In fact, a friend and I played through GOW I + II for days straight on my PS3 and the batteries didn't even need a recharge and made it all the way through!
Don't open your mouth till you've actually had experience first hand, or you'll end up sounding like a tard.
MS has more then enough money to make you believe whatever they want. I'd imagine 10 million sold by now, but not so long ago like they said.
You need to take into account the 360 and Wii have been around for over a 18 months now (?) the PS3 was only released in the US and Japan 6 months ago and in Europe only last month.
It beat them both on first weekend sales in Europe by a huge amount and I think it will continue to sell big numbers.
I couldn't care less. I've always bought PS products and will always do it. Right now it's the most powerful but like everything that won't last long. It's all good for us gamers as we just get better and better machines whatever the make. Buy what you like and to hell with everyone else. I have better things to do than flame someone for liking a different console.
MS is gayer than a dumptruck full of *****s
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