The stakes have been raised yet again for this next console generation; Microsoft has predicted that they will sell Xbox One units in the tens of millions. Speaking at the Citi Global Technology Conference, Microsoft Corporate Vice President Yusuf Mehdi not only made that bold claim, but also mentioned that over 90% of those customers already own a current-gen console.
In all the research we’ve seen, there’ll be tens of millions of buyers in the first year and in the research we do, over 90% of them own an existing console. – Yusuf Mehdi
Mehdi also appears to agree to some extent with Microsoft’s previous CEO Don Mattrick’s sentiment that Microsoft is overdelivering on value, claiming that the current price at $499 is a good deal.
We wanted to break the barrier of being able to voice control your television, and to do that we added a lot of capability. And so, the view we feel is that for $499, our price point, we think the value we provide for that is a very good deal.
Moreover, Mehdi stressed his belief that Microsoft is delivering a better and more complete product than its competitors, and that the Xbox One has an overall better lineup of games.
Competitively speaking, so far, I feel like we have a much better… more complete value prop. We do things that aren’t found on other platforms with the Kinect, a huge piece of differentiation. As I said before, the fact that we do entertainment and gaming.
And then even if you just take gamers, hardcore gamers, gamers buy for the game. They don’t buy for stats on a spec sheet. And if you look at the games we have, according to most industry experts now, a better lineup of games.
"Tens of millions" may seem rather optimistic for a console that’s received such negative feedback, but Microsoft remains confident. How many Xbox One units do you think Microsoft will be able to ship in the first year?