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Analyst: Xbox 360 sales solid but "lackluster"

Blake Snow

In light of recent industry growth, two investment bankers from Wedbush Morgan Securities and Deutsche Bank examine the performance-to-date of Microsoft as a console manufacturer. Other than stating the obvious that the original Xbox is "all but abandoned," one analyst had this to say when comparing Xbox versus Xbox 360 sales:

"The Xbox 360's installed base is still smaller than the original Xbox's equivalent after the same number of months of sell-through. Xbox 360 sales are even more lackluster if you consider that the original was an unproven product that was trying to sell-in against the hugely popular PS2 ... In 2001, the PS2 was consistently selling-through >300K units a month, whereas the Xbox 360 has not broken 300K since its launch in November."

Those numbers suggest that initial momentum for the original Xbox was better than the 360. So could the Xbox initiative as a living room defense strategy against Sony (as it's partly believed) actually be hurting the 360's potential?

[Thanks, Nigeria]

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