Analyst Michael Pachter predicts 1 million holiday Xbox One X sales, “not a huge success”
Microsoft’s Xbox One X recently became the fastest-selling Xbox pre-order ever, and Microsoft seems confident that it will have the best-selling console during the holiday season. “We’re gonna make as many Xbox One Xs as we can make,” recently shared Xbox Marketing Chief Aaron Greenberg, adding that “All the signs are that it’s gonna be the number one hit product of this Holiday, so we’re gonna keep up with demand the best that we can.”
As you may know, Microsoft no longer shares how many Xbox consoles it sells during its quarterly earning results, and the company didn’t reveal either how many Xbox One X consoles have been pre-ordered so far. This lack of hard data shows that it’s probably best not to expect exceptional Xbox One X sales during the holiday season. Michael Pachter, Research Analyst at Wedbush Securities recently shared that he didn’t expect the new console to sell more than 1M units during this crucial period, a number he sees as “not a huge success” (via GamingBolt):
My estimate is 1 million global units at holiday. Don't "want" it to fail, think that is the right number. 1 million is not a huge success
— Michael Pachter (@michaelpachter) August 31, 2017
In a separate tweet, the analyst added that he sees the Xbox One X is “a phenomenal device,” but its $500 price is “too high for it to appeal to mass market.” He certainly has a point, and it’s very likely that Xbox One S will remain the best-selling Xbox One model in the years to come.
If you think the new console will be a high-margin product for Microsoft though, you’re mistaken. Following E3 2017, Xbox head Phil Spencer explained that Microsoft wouldn’t make a profit on Xbox One X sales, adding that games, not hardware was the money-making part of the business. It’s likely that the 4K gaming machine will become cheaper in a couple of years (as did the original Xbox One and the Xbox One S), but for now, Microsoft has nothing to lose when offering more choice to consumers.Further reading: Microsoft, Xbox One, Xbox One X