Microsoft's Xbox One Has Luck on Its Side

Indianapolis Colts owner Jim Irsay had a surprise waiting for his team after Friday's practice. The outspoken football mogul had Xbox Ones waiting in the locker room for pigskin hurler Andrew Luck and all of his teammates.

Luck didn't seem to be on Microsoft's (NASDAQ: MSFT  ) side earlier this year. The company's Xbox One seemed to be in trouble, as it was introduced at a higher price point than rival Sony's (NYSE: SNE  ) PS4 and with restrictive features that angered the gaming community before Microsoft relented. Rolling out a week later didn't help, and neither did Nintendo's (NASDAQOTH: NTDOY  ) markdown of its poor-selling Wii U weeks before the Xbox One release. Then we had the defective systems, and Microsoft's slow response to correct the situation. 

It's a kinder climate these days. Today marks a month since the Xbox One's retail release, and it's clear that Microsoft isn't repeating Nintendo's Wii U fiasco from last year. Sony sold more PS4 systems in November, but that was largely the handiwork of hitting the market a week later. Both consoles quickly crossed the mark of 2 million consoles sold, and now the real test for supremacy will come when we get December's data with the level playing fields.

However, even 4 million consoles -- and counting -- between the two platforms has to be an encouraging sign for the industry. Gamers could've easily been reluctant here. Sticker shock about the initial prices could've scared off potential owners, but the real setback could've been compatibility issues with the Xbox One and PS4. When Microsoft and Sony joined Nintendo by switching to AMD (NYSE: AMD  ) chips, it meant releasing more powerful platforms that couldn't organically play older games. Would gamers show up, knowing that they couldn't trade in their older consoles to help raise money for the purchase?

They did, of course. Naturally, 2 million Xbox One owners or 2 million PS4 buyers won't be enough to overtake the larger Xbox 360 and PS3 user bases. It takes years for any console migration process to play out. This time around it may even take longer, given the compatibility issue. However, this is shaping up to be the holiday shopping season that the industry needed after three years of declines and last year's uninspiring Wii U launch.

It's not just the Colts team that's riding the success of the next generation of gaming platforms.

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Read/Post Comments (10) | Recommend This Article (4)

Comments from our Foolish Readers

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  • Report this Comment On December 23, 2013, at 10:05 AM, AzDuststorm wrote:

    At $500.00 I will not be buying anything like that for a long time. Impress me with technology not price tag big price is not always better. How come the graphics on the game never match that of the commercial???

  • Report this Comment On December 23, 2013, at 10:32 AM, normgarry wrote:

    Microsoft got and still has people lining up in droves for XBOX ONE. PS4 is sold out and NO ONE WANTS A WIIU.

    By the season's end, both Microsoft and SONY will have an equal number of sales for the PS4 and XBOX1.

    Thing is, that's exactly what you see when you look at the XBOX360 and PS3. Sales (as of November) were equal at 80,000,000.

    The video game industry is no place for traditional "marketwatch" websites. Motley and Forbes KNOW NOTHING about video games. According to the Wii sales data, the WiiU should have been selling like hotcakes.

  • Report this Comment On December 23, 2013, at 10:32 AM, Skechmb wrote:

    Oh Boy. This commentary should be fun..... Someone pass the popcorn.

  • Report this Comment On December 23, 2013, at 10:35 AM, normgarry wrote:

    I bought both the PS4 and the XBOX1 so I can't be left out of any games at all. I also have a core i7 in my HP ENVY with 32GB of RAM and a GTX with 4GB. Neither system has framerates as smooth as the PC. Thing is, there's no PC you can get for $500 that gives you what the PS4 or XBOX1 gives you.

    I prefer my XBOX1 because the voice controls and HDMI pass through make it great for my living room. My girlfriend loves KINECT FITNESS (God knows why) - but it keeps her backside tight so I'm cool with it.

  • Report this Comment On December 23, 2013, at 11:02 AM, jatu0608 wrote:

    had really big problems getting a ps4 here in germany. all been sold weeks before it was actually released. the next ps4's will be available in february. xbox one's are piled up at the stores. no problems at all to get one even a day before christmas.

    For the rest we have had no problems with our ps4 so far. all working perfectly well.

  • Report this Comment On December 23, 2013, at 12:58 PM, Tmxima wrote:

    Rick, although Luck has a Xbox1, I wouldn't say luck is going to be on their side.

    To me, Microsoft is following the same path as Nintendo did last year, which is sad because they had one year to learn what went wrong. High price and low amount of exclusive games would be one reason. But the "biggest" issue with the Xbox1 and WiiU was that their companies didn't correct any misinformation the public had before it was too late.

    Remember when people thought the WiiU was an upgrade, or an accessory, for the Wii? Remember when people thought the Kinetic was going to spy on us and send the info to the NSA?

    Both rumors weren't true, yet the damage was done, leaving Sony as the "sole winner" of this generation.

    @jatu0608, it's the same thing here in America: I could walk into almost any retail location that sells one and buy an Xbox1 right now. As for the PS4? Most likely have to call first so I don't waste my time driving there.

  • Report this Comment On December 23, 2013, at 2:37 PM, captAhab02 wrote:

    Norm thats bull ofc people want a Wii u, much more than scam Xbox One.

    Seriously anyone remember the change of terms of Service with Xbox 360 u either allowed the sell of your privat Information to third parties or Lost your download stuff.

  • Report this Comment On December 24, 2013, at 2:06 PM, toeachtheirbones wrote:

    The Motley Fool is sure doing a lot of X Box One promoting. Maybe the fact they own shares of Microsoft has something to do with it?

  • Report this Comment On December 28, 2013, at 10:30 AM, AbstractLogic0 wrote:

    After having every playstation generation from day one as a kid and never owning an xbox, I got an xbox one. Forza 5 is the best console racing game made. Its what Gran Turismo used to be before it went way too technical and became a grind. The reason I switched is the reason I never wanted xbox. Sony decided to go to a pay to play online structure like xbox live for its games. PS3 was fee to play online. A second reason is the old xbox controller hurt my big hands with its battery box sticking out. They fixed it with the xbox one. So I decided to give xbox a chance because I didn't really like the sony exclusives and am always willing to pay for innovation. Very glad I did. No more buying random controllers to work with the playstation eye on the ps3. The xbox loads up and into a game within 10 seconds of saying xbox on and go to Forza motorsport 5, boom Im playing. The fact that You can download a portion of a game and play it makes the unlimited cloud space great. You only load the parts you need to play so disk space will not be an issue with these space hungry games. Unfortunately with ps4 you have to download the entire game to play eating up valuable disk space forcing costly upgrades.

  • Report this Comment On December 28, 2013, at 1:19 PM, OBUMACARE666 wrote:

    This is a shame that CANCER causing XBOX 1 and the LAME with no games PS4 sold over 2 millions stinking units each.Your favorite game franchises that are also on the PS3 and XBOX 360 and some on the stinking Nintendo Wii U have slightly upgraded graphics at best,but the exact same games you been playing for over the last decade literally.Wasting your $ and time on the exact same video game experiences aka GTA,Call Of Duty,Battlefield,Need For Speed,NBA 2K,NFL 2K,Madden,NBA LIVE,etc.,etc.,is more TRENDY than i thought.The NEW WORLD ORDER aka our elite slave masters worldwide did an A+ job of making the majority of us slaves and peasants DUMB,STUPID,and RETARDED with the exact same video game experiences,poisoned food,water,air,vaccines,drugs,snacks,media period.This is why those unemployment checks stopped today as well as why we're in the biggest trouble politically aka literally period.Politics owns us,BUT YOU DON'T HEAR ME THOUGH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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