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Microsoft: Next-gen could hit 1 billion consoles sold

Microsoft aiming at 25 million Xbox 360's sold in the next five years

According to Microsoft senior vice president of Interactive Entertainment Yusuf Mehdi, the company is looking to sell 25 million more Xbox 360's over the next five years.

"We believe over the next five years we can break a 100 million unit installed base," Medhi told OXM. "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. So you'll see the Xbox 360 continue to exist, even as we launch the next generation Xbox One."

Microsoft Game Studios executive Phil Spencer told GameSpot earlier this week that a large 360-related announcement was coming at E3 2013, that would support the platform for "years to come."

The company also believes that the next-generation of consoles, including the Xbox One, could reach 1 billion in combined sales. Microsoft is hoping that mass-market audiences are enticed by the console's enhanced media and voice capabilities.

"Every generation, as you've probably heard, has grown approximately 30%. 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," added Medhi.

"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."

[Image via TechRadar]

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Latest comments (21)

Have the seen WiiU sales reports?
As of 31 March 2013, Nintendo reports 3.45 million units have been sold worldwide.[2]

the best thing that has happened to WiU sales was the xbone reveal, sales have shot up several hundred percent since then.

A billion units... where do they find these guys?

Edited 2 times. Last edit by Todd Weidner on 25th May 2013 4:35am

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Cale Barnett Animator 3 years ago
Are there even this many smartphones in circulation through 1st world countries? (presuming this is where next-gen consoles will be sold)
Expand your market to South America, China , etc and there may be a good chance.
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Paul Jace Merchandiser 3 years ago
"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.
The only thing missing from that quote is a picture of Dr. Evil holding his pinky to his mouth.
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Show all comments (21)
Greg Wilcox Creator, Destroy All Fanboys! 3 years ago
Well, given that the new console, er, TV Box One won't play "old" games, yeah, they just may make that target if they have games coming for it, there's a new price drop and they count all the people who'll buy in as new users for all those soon to be bargain bin games. Hell, there are already a ton of retail games available for ten bucks or under that someone just picking up a 360 (who isn't jaded) will snap up when they buy that "old" system.

THAT said, haven't they learned the lesson from others from tossing around numbers too early? Eh, we'll see... If the economy flops, it's going to be a big, bad time for everyone in the industry, so some fingers and toes better be crossed that a certain few countries stay stable...
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maybe they've forgotten to add a decimal point somewhere...
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Andrew Goodchild Studying development, Train2Game3 years ago
To hit 1 billion, are they making sure to include blue ring of death? (new generation, new pretty colour).
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Klaus Preisinger Freelance Writing 3 years ago
Roll in the Dr. Evil memes
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.3 years ago
1 billion? Just how far from reality have MS traveled?

They haven't even sold 1 billion games on the X360. How do they figure they can sell that many actual hardware units?

They must really be putting all their financial eggs in the TV basket. Reminds me of Windows 8. Putting all their financial eggs in the tablet market.
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Andy Samson QA Supervisor, Digital Media Exchange3 years ago
They think this thing's going to sell like smartphones on a global scale. Smartphones are more essential to people and it serves as a status symbol to a majority of users. A lot of people just buys them to show them off, they do not even use most of its smartphone features. You do not have to invite people over to your living room to make others see your hardware, you take it with you wherever you go .

This console has no appeal in places where its major non-games unique selling point is not supported. The system will only be good for the Americas and nowhere else. I highly doubt it will be able to launch in Europe with the features intact this 2013. The Japanese are turned off by systems which requires a lot from their living spaces.
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Greg Wilcox Creator, Destroy All Fanboys! 3 years ago
Microsoft Game Studios executive Phil Spencer told GameSpot earlier this week that a large 360-related announcement was coming at E3 2013, that would support the platform for "years to come."
Hmmmm... what, they're going to ship them out to use as inexpensive portable heaters and cookers in any country that uses electricity that doesn't yet have a console market? That's a few hundred million systems right there...

All kidding aside, double hmmmm.... this could get interesting if this latest big announcement is one of the random things I've been thinking they'd do for a while now with the hardware.

So right now, it's down to whatever games are shown at E3 for the new system and what this mysterious other announcement is on the 360 front. This better be a total earth-shaking press conference, is all I'm saying...
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Rick Lopez Illustrator, Graphic Designer 3 years ago
Unless they expect people to carry around an XboxOne like they do a smartphone or tablet, i find these expectations delusional.
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James Prendergast Research Chemist 3 years ago
Hah, well... I won't speak to the XBO figures but the 360 should be very doable when all the older units will be out of warranty and failing left and right! ;)
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Brett Caird Production Director/Founder, 5th Cell3 years ago
The want it to be as ubiquitous as TVs and smartphones. If they achieve that, then they will sell 1 billion units.

A case of:

1. Set goal to achieve ubiquity with a console
2. Make the console
3. ...
4. Profit!
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Colin Payne game designer; artist 3 years ago
To all you naysayer: Now imagine its going to retail for $50!


Actually a billion still seems pretty silly.
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Dan Howdle Head of Content, Existent3 years ago
Some facts:

1. Xbox One plays used games.

2. Xbox One will have its own indie development platform.

3. The Wii U did not leap up in sales several hundred per cent. It leapt up a bunch of chart places, represented on Amazon by somebody without the first concern for mathematically correct interpretation. By the same token, if a hit single, say, moved from position 23 to position one in the charts during a particular week, it might well (if, hypothetically, the sales of everything else had dropped) have only sold the same number of units to do so, yet Amazon would call a 2300% rise. Amazon are being dim, but let's not jump on the dim boat without checking for holes in the hull. I'm not saying sales didn't go up, only that there are outside factors in play and there's a high probability the rise was of low statistical significance.

At the risk of labouring the point; when Amazon finally got news of Xbox One release dates and pricing structure, what was their reaction likely to be? An email, perhaps? Filled with Wii U offers? To several million customers? I don't know about you, but I don't see anyone, anywhere reporting that. Only poeple adding that ludicrous and ill-researched statistic into stories that back up the anti-Xbox One propaganda they're churning out as fodder for click-happy malcontents.

3a. Since Microsoft is talking 'next gen' here, I can guarantee you they aren't including the Wii U in that statement.

4. I liked Jace's comment about Dr Evil. I giggled out loud while reading it in the bathtub. I GOLWRIITBT'd.

5. A billion seems like an overestimate to me.

Edited 1 times. Last edit by Dan Howdle on 29th May 2013 6:06am

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The numbers show all the platforms sold in the current generation, not just from Microsoft. 300 million = Sony + Microsoft + Nintendo, right?

So the 1 billion is an estimate for the next generation of platforms sold in their lifetime. Take it as a potential market size estimation. Microsoft's share in it? Who knows, yet.
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Craig Burkey Software Engineer 3 years ago
I'm assuming this is the American Billion right?
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Adam Campbell Producer, Hopster3 years ago
After 16 years of the digital service, around 1 in 7 UK citizens have Sky box on subscription. You would need to replicate that statistic through the entire world population for it to be possible and that won't happen any time soon...

The previous generation is a fraction of that and consoles probably aren't as easily accessible or completely comparable on what these media companies like Sky and Virgin are offering (even Internet and phone alongside the TV box on reasonable monthly package, making it more essential to the home experience).

I think the comments may have fallen slightly out of context. It sounded life more of a long term ambition for the industry, which is possible. Given a couple more generations, the multi-purpose functionality, the ease of access to tech and world population growth will have increased, enabling consoles to find a potentially bigger market than before. Still, to reach that figure will require a number of areas to be satisfied (i.e. accessible and cheap, a need for the product or a significant ability to make entertainment easier) and a lot of time...
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Bruce Everiss Marketing Consultant 3 years ago
There is some confusion here in the article and in the comments. 100 million is 100 million. It is not a billion.
A billion is 1,000 million in most accepted useage. Called short scale.
A billion can be a million million in some useage. Known as long scale.
In context this year over a billion smartphones will be sold. That is 1,000,000,000.
In fact more smartphones will be sold this year than all the consoles sold in the whole of history.
The vast majority of those consoles are now unused. All those smartphones will be used.
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Dan Howdle Head of Content, Existent3 years ago
@Bruce

And how many of those block their users from physically purchasing a next-gen games console?
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Richard Pygott Level Designer 3 years ago
I have never heard of anything so preposturious in my life!

Did Microsoft Google "How many TV'S are there in the world?" and then decided they could sell each one of those people an Xbox One!

Microsoft has seemingly switched places with Sony from the last generation. They are bullish and arrogrant and believe thier way is the only way, Sony learned the hard way & have presented themselves excellently at the start of the next generation of consoles with their approach to gamers, developers and indies.

Either way, it will be interesting to see how the next 12 months pan out for both companies!
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