Microsoft’s senior vice president of Interactive Entertainment Business Yusuf Mehdi spoke with OXM about the sales of the Xbox 360, as well as the next generation of consoles. He expects the Xbox 360 to sell at least 100 million units before it is taken off the market.Half of the sales in the future he says will be replacement, while the other half will be new buyers.
“We believe over the next five years we can break a 100 million unit installed base,” said Medhi. “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,” he continued. “So you’ll see the Xbox 360 continue to exist, even as we launch the next generation Xbox One.”
He made a bold prediction when it comes to the next generation of consoles. Industry experts are expecting sales of 400 million between the Xbox One, PlayStation 4 and Wii U, which is about a 30 percent increase over what the Xbox 360, PlayStation 3 and Wii are expected to sell lifetime. Mehdi is expecting that with an entertainment device that isn’t dedicated to gaming that sales could reach one billion.
“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.”
“We think you can go broader than a game console, that’s our aim, and you can go from 400 million to potentially upwards of a billion units. That’s how we’re thinking of the Xbox opportunity as we go forward.”