Microsoft Is First to Sell 10 Million Game Consoles

Microsoft announced that its Xbox 360 video-game and entertainment system has sold more than 10 million units in the U.S., making it the first current-generation gaming console to break that mark. The U.S. installed base contributes to global sales of more than 19 million.

"This year will be the largest in the history of the video-game industry, with Xbox 360 leading the charge in the U.S. and abroad," said Don Mattrick, senior vice president of the interactive entertainment business at Microsoft. "History has shown us that the first company to reach 10 million in console sales wins the generation battle. We are uniquely positioned to set a new benchmark for the industry."

Xbox Live's Impact

Microsoft's announcement comes on the heels of one of the biggest entertainment launches in history, Grand Theft Auto IV, on April 29. Microsoft said gamers eager to experience GTA IV online helped boost Xbox Live global members to more than 12 million this month. Xbox Live members have doubled in only one year's time.

"Reaching an installed base of 10 million consoles in the U.S. is a significant achievement and an essential milestone on the road to market leadership," said Billy Pidgeon, research manager at IDC. "Perhaps more important is the Xbox 360 worldwide online base -- 12 million Xbox Live gamers is the largest community in the connected console-games sector, which represents the greatest growth opportunity in the console market and where Microsoft has been the leader for two generations."

Beyond hitting the 10 million mark first, the Xbox 360 also leads with the industry's highest software rate, more than any other console this generation. Xbox 360 is home to more than 16 platinum titles that have sold one million units or more, including hits such as Halo 3, Madden NFL 07, Madden NFL 08, and Gears of War. That gives the Xbox 360 twice the platinum-selling titles as the Wii and a 16-2 lead over the PlayStation 3. But Wii is fast approaching the Xbox with 8.8 million consoles sold.

Putting the Consoles in Context

"Microsoft is still the new kid on the block, so they deserve credit for the fact that they are continuing to grow their market and progress," said Mike Goodman, a video-game analyst at Yankee Group. "Nintendo deserves an incredible amount of credit for the progress it's made. Nintendo is well on its way to eclipsing Microsoft with a year less on the market."

Goodman said analysts need to look at each of the three video-game console makers in context. Even though Nintendo's Wii is projected to surpass the Xbox 360, and even if Microsoft winds up in third place as Sony's PlayStation gains momentum, Goodman said Microsoft might still be happy if the final revenue numbers are good.

Sony should not be counted out, Goodman said, but 2008 is a pivotal year for the PS3 maker whose game system got off to a slow start with high prices and scant software titles.

"Look at some of the games that are coming out now. Grand Theft Auto IV could cause a lot of Sony loyalists to upgrade and buy the new game, and Metal Gear Solid is coming out later this year along with Little Big Planet," Goodman said. "There are a lot of big titles coming out for Sony that have to do well, and if history is any indicator, should do well and pull a lot of PS3 sales along with them."