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Australian retailers discuss the potentially bleak future of the Xbox 360

April 06, 2008 in News comments 20

A survey by ChannelNews and SmartHouse conducted around 10 of Australia's main retail chains who operate over 2,000 stores reveal that the Xbox 360 is on a downward spiral with all new gamers more interested in the Playstation 3 or Nintendo Wii.

The retailers have stated that since the RROD that occurred on the Xbox 360 in 2007, the consumers now look at the 360 and do not believe it to be a good value of money in comparison to the Playstation 3 and Nintendo Wii.

They also claim that the reason for the fall of success at the moment for the Xbox 360 is because the Playstation 3 and Nintendo Wii are being aimed more at women and families as well as Sony also being in charge of the HD format because of the Blu-Ray content.

Their comments have even gone as far to claim that the Xbox 360 is dead in Australia and they are putting all there effort on the Playstation 3 and Nintendo Wii for the future of its customers because no one is really that interested in it anymore.

A survey of 10 Australian retail chains who operate over 2,000 stores Conducted by ChannelNews and SmartHouse the research also revealed that the most crucial component in the gaming market in 2008 will be new software. Overall retailers said that the PS3 was selling well because it had a Blu ray drive and that the Nintendo Wii was appealing to both women and "Kids" because of it's interactive capability.

The retailers claimed that the Xbox 360 as a brand had suffered from their "Ring of Death" problems in 2007 and that consumers did not see the Microsoft gaming console as "Value" when compared to the PS3 or the Nintendo Wii.

One major retailer said "Both the Sony PS3 and Nintendo Wii appeal to women and families and with Sony now winning the HD format war we can also sell the PS3 as a Blu ray player. This will allow us to also sell Blu ray content".

Another Melbourne based retailer said "The Xbox 360 is dead. We are stocking it because of our relationship with Microsoft however all our energy and marketing is going into the PS3 and the Nintendo Wii unless Microsoft come up with something new or additional marketing dollars. Halo 3 was big on the Xbox but that was about it. They have tried discounting and value add offers and even that is not working. We are even thinking of dumping the console all together".
tidus04 via smarthouse.com.au »
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  • 2
    jmac353 Apr 7, 08
    These aren't retailers, I mean they're retailers in the sense of the word, but they're no Target, Walmart, GameStop, Best Buy, no body important. These people make no difference. If someone wants to get a 360, there are going to be plenty of other available sources to do so.

    All they're doing is limiting their potential to make money. If they don't think they'll sell that many 360s then simply don't order so many at a single time. As easy as that.
  • 2
    Red 9* Apr 7, 08
    I don't believe one single word of this article. Plus, this is just a few retailers in Australia; far from a global issue.
    • 1
      tidus04 Apr 7, 08
      I would agree with you on the basis of the global issue though how can 2,000 stores based from 10 main retail chains be just a few. That has to be at least 50% especially on the basis of stores I would have though.
  • 0
    I am what I am Apr 7, 08
    I love how one source is entitled 'The 360 is dead'
    Yeah right... it's been only 2years!
    • 1
      tidus04 Apr 7, 08
      Im sure it was called that becuase that was quoted from what the Melbourne based retailer stated and only becuase it is called that it doesnt mean it is true. Its just a matter of opinion.
  • 1
    Play ISDF Apr 7, 08
    It is true that the 360 is getting to that point where everyone who wants one has one pretty much and there is the whole RROD thing so that's why sales have gone down compared to the other consoles but dumping 360 altogether would be a stupid move imo. Oh well, not like it affects me.
    • 0
      iLLmatic Apr 7, 08
      I will never understand where some of you get this logic from, if you can even call it logic at all. Why do some of you keep saying that everyone who wanted a 360 has one already? The thing has been out 2 years and its only sold 17 million units. What on Earth are you basing that statement on? PS2 sold 120 million in 6 years AFTER following up the PS1, which sold 100 million. Did everyone who wanted a PS2 have it after just 2 years? Obviously not. Yes, the 360's sales have slowed down, while the Wii and the PS3 have gotten stronger, but it still has only been 2 years. It hasn't even sold as many as the original XBOX yet.
      • -1
        Play ISDF Apr 7, 08
        Wow, talk about going overboard. I said pretty much...I'm in no way saying that nobody wants a 360 anymore and it won't sell at all. All I meant was that everyone who doesn't have a 360 at this point either doesn't have the cash, isn't terribly interested in getting one at this point or if they are, it's definitely not too high on their priority list at the moment, or have absolutely no interest in getting one at all. If they wanted one badly enough and had the cash for it, don't you think they would have gotten it already? As you said it has been two years, nobody is in a big rush to get one with the exception of those without cash (if they want one) or if some exclusive comes out for the 360 then there may be people grabbing a 360 asap for that game.

        Also, that's the first time I've ever said something along the lines of "everyone who wants one has a 360 already" so don't just instantly chuck me into that group.
  • 2
    LordMaChao Apr 7, 08
    HAHAHA. Shut the hell up.
    • -2
      Final Blade Apr 8, 08
      Whoa there, your actually allowing this to affect you? We should all know by now if fake
  • 3
    VeGiTAX2 Apr 7, 08
    They've had a bit of trouble down there as of the past year, including some bouts with EB Games and Gamestop if I recall over premium units.

    Calling all of that the downfall though, thats a bit much unless MS essentially told everyone to go stab themselves instead of fixing the issues.
    • 2
      jmac353 Apr 7, 08
      Didn't the whole world pretty much tell Australia to go stab themselves? Aussies are used to being treated unfairly.
      • 0
        VeGiTAX2 Apr 10, 08
        You mean by insane price hikes, late console releases, missing out on major titles and just feeling like a second thought in the whole scheme of game releases? Yeah they've been kicked / stabbed / shot quite a few times...

        If I remember, most of the time gamers down there end up resorting to importing instead of waiting on domestic releases for systems anyway since the library ends up taking so many hits.
  • 2
    Storm Apr 7, 08
    Indeed. Australia and Japan are the key targets of Microsoft's consumers...get real. They are focusing on the rest of the world.

    It's cold to leave Australia in the mud, or so reports have claimed, but I don't recall them taking in the first Xbox console, either.
    • 1
      jmac353 Apr 7, 08
      Besides the point. I mean think about Yahtzee .
      • 0
        Storm Apr 10, 08
        You're right, jmac!
  • 1
    Xenctuary Apr 7, 08
    I've edited this article's title to one more appropriate than "Xbox 360s Downfall And Retailers Considering Dumping It". It must have slipped though the cracks.
    • 0
      StarJet Apr 7, 08
      I tried to send it to RE before it was approved, but Guticb had approved it before.
  • 4
    Donnelly Apr 7, 08
    I couldn't care less about hardware sales.

    As long as they continue to make games like Bioshock, Gears of War and Mass Effect I'll be happy.
  • 0
    theundertakergonzo Apr 7, 08
    That is interesting to say the least but it is true that the Wii does target its game for more family based playing. I wouldn't so much say the ps3 does but still none the less its interesting to hear this.

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