By Ian Sherr
Microsoft Corp. on Thursday said it has sold more than five
million Xbox One consoles to retail shops since the product was
launched in November.
The company hadn't provided sales figures since early January,
when said it sold 3.9 million units through the end of 2013.
Microsoft's statement comes a day after rival Sony Corp. said it
sold more than seven million PlayStation 4 units, up from six
million it had counted in March. Sony has released sales to
consumers, while Microsoft in January said it would thereafter only
release sales to retailers that carry the console.
Despite the difference in methodologies, the statements from the
companies reinforce Sony's apparent lead over Microsoft since they
released their new consoles in November.
Microsoft emphasized the positive comparison with its prior
system. "The new generation is off to a strong start, with global
Xbox One sales outpacing Xbox 360 by more than 60 percent at the
same point in time," said Yusuf Mehdi, head of the Xbox division's
marketing, strategy and business, in a statement.
The statement from Microsoft coincided with March U.S. retail
sales data from NPD Group, which said hardware sales rose 78% from
a year earlier to $395 million.
Game software didn't fare as well, however. Sales of new console
and PC videogames at U.S. retail shops fell 28% in March, to $432
million from the same period a year ago, the research firm
said.
Further, revenue from subscriptions to multiplayer Internet
connected games, such as Activision Blizzard's "World of Warcraft,"
slumped nearly 19% to $84.8 million, according to SuperData
Research, another firm. And revenue from games that are initially
free to play rose just 9.4% to $554.6 million.
But not all parts of the software industry are slumping.
Electronic Arts released its highly anticipated space-age shooting
game "Titanfall" for the Xbox One and PCs on March 11, topping
sales rankings in both retail and Internet-delivered sales, NPD and
SuperData said.
Videogames sold and delivered over the Internet for consoles and
PCs rose nearly 21% to $297.2 million, according to SuperData.
The mixed sales data suggests changing consumer habits are
weighing on the industry's fortunes. Videogame executives have for
months said purchasing of games made for older consoles dropped off
quicker than expected following the release of Sony's new
PlayStation 4 and Microsoft's new Xbox One last November.
Further, gamers are increasingly buying and downloading titles
over the Internet. NPD said sales at traditional retailers
represent roughly half of overall consumer videogame spending.
In terms of sales in March, SuperData said some top games played
on mobile devices and social networking websites, particularly King
Digital Entertainment's "Candy Crush Saga," were struggling to
increase their customer base. SuperData said Zynga was separately
struggling to to pull in additional sales from its key products,
including its casino games.
Meanwhile, game enthusiasts were drawn to more sophisticated
titles. In interviews, gamers said they were particularly excited
by the new take on the war simulation genre brought by "Titanfall,"
including building-sized robot-like machines that can join
battles.
Those enthusiast gamers had "once again becoming the industry
focus," said Joost van Dreunen, head of SuperData, in a
statement.
Sony's "Infamous: Second Son" action adventure superhero game
released only for the PlayStation 4 was the second-most purchased
title in retail shops during the month, NPD said, followed by
Ubisoft's "South Park: The Stick of Truth," fashioned after the
popular television cartoon series. SuperData said "Thief," a game
by Eidos, was the second-most selling game for consoles and PCs
delivered over the Internet, followed by Activision's "Call of
Duty: Ghosts," war simulation game.
Sales of videogame accessories, such as toys that interact with
games as well as gift cards that can be redeemed for items such as
new story lines, rose 4% to $224 million, NPD said. The top two
accessories were gamepads for the PlayStation 4 and Xbox One, the
firm added, as well as headsets for the new consoles.
Write to Ian Sherr at ian.sherr@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires