Halo 3 to finally push Xbox into the black?

by Richard Mitchell { May 25th 2007 at 11:30AM }

Looks like Robbie Bach was right. Remember when we reported a few weeks back that Halo 3 pre-orders had topped 4 million at GameStop? It looks like analysts are paying close attention to that number and are now saying that Halo 3 is shaping up to do some very nice business for Microsoft. While this isn't exactly a shock, we didn't realize just how nice that business is expected to be. GameSpot reports that Goldman-Sachs expects Halo 3 to reach $170 million in sales during its first week of availability, with more than 4.2 million copies shipped to retail. Given Goldman-Sachs estimate that there will be 13.2 million Xbox 360s sold by September, that's 1 copy of Halo 3 for every 3 Xbox 360s in the world. Furthermore, the group notes that the $170 million estimate may be as much as $50 million too low, depending on the actual Xbox 360 install base. Finally, if these estimates prove true, Halo 3 could very likely propel the Xbox into its first profitable quarter ever (it just so happens that Halo 3 debuts right at the end of Microsoft's first fiscal quarter for 2008). After nearly 6 years in the red, we imagine the Xbox Division has a mighty big circle around September 25 on the office calendar.

[Via GameStooge]

Tags: bungie, bungie studios, BungieStudios, halo, halo 3, Halo3, mgs, microsoft game studios, MicrosoftGameStudios

Reader Comments (Page 1 of 1)

Tony @ May 25th 2007 11:49AM

If 4 million were pre-ordered just at Gamestop, isn't 4.2 million shipped to retailers going to be awfully low...?

Jeff @ May 25th 2007 12:07PM

I though the phrase was "'out of' the black". Is that a mistake or am I misinformed.

kevin @ May 25th 2007 11:51PM

Well I for one and I know many others will be getting it because of the online multiplayer... I mean thats a crap load of people who are gonna be on live playing this... I am probably like a million other people who have played Halo at a friends house a couple times for the multiplayer but thats it... it is fun and just imagining the swarm online when part 3 comes out tickles me!

Halo is the must have game for 360 as is gears so obviously this is a system mover...

Justin U @ May 25th 2007 12:18PM

Hope that ring around September 25th isn't red...

I Joke because I love.

Can't wait any longer. College is going to SUCK with Halo 3 there.

0ldb0y @ May 25th 2007 12:19PM

"Into the black" is correct. Convention in accounting is that positive numbers are in black ink, and negative numbers (losses) are in red.

Notice that Rings of Death are also red. Mayhaps the Xbox division hitting profitability, suddenly all Xbox360s suddenly stop malfunctioning? Mayhaps not.

Toph @ May 25th 2007 12:24PM

Considering Halo 2 made $120 in one night, the most expensive copy was $60..oh, yeah..Microsoft will be making BUKU bucks come September 25th!

Toph @ May 25th 2007 12:25PM

..That was $120 MILLION...

George @ May 25th 2007 12:29PM

The phrase is "out of the RED", or "into the black". Red is a deficit, black is a gain.

DjDATZ @ May 25th 2007 12:39PM

The post is correct...the division has been at a loss for the past 6 years (in the red) and now it might finally become profitable (go into the black).

HALO 3 and Xbox 360 FTW BITCHES!!!

Grindstone @ May 25th 2007 12:51PM

Admittedly, I am a liberal arts major and therefore, not that good at math. But tell me this, 4.2 million preorders multiplied by $60 does not equal $170 million, does it? ($252 million) And also, I'd say that at least 20 - 25% didn't preorder the $60 version. Perhaps he is deducting manufacturing costs, distrubiution, and the retailer's cut. Still, that's not what is implied in the article -- total sales.

Jonah Falcon @ May 25th 2007 12:55PM

Microsoft: All your base are now belong to us.

Jeff @ May 25th 2007 12:59PM

Grindstone, you say 'the 60 dollar version' like it's the more expensive of the two. (three, actually) I could be misunderstanding you but that is the impression I'm getting. So in that case, I need to make clear the 60 dollar version is the cheapest, followed by the 70 and 130 dollar versions. Also, those 4 million are only from Gamestop. There are many more places that sell and offer preorders. Don't forget, some people don't preorder. There will be more sales than preorders.

Jeff @ May 25th 2007 1:00PM

oh.... I just realized I rad his numbers in reverse. Thought he was doubting the high sales claim. ignore me**

Spitkicker @ May 25th 2007 1:34PM

Of course it will...it's Halo freaking 3!!!!

0ldb0y @ May 25th 2007 2:33PM

@Grindstone:

I think "$170 million in sales during its first week" and "4.2 million copies shipped to retail" are two independent clauses, and would have been less confusing had they been separated into two sentences.

$170mm is an estimate of first week sales.

4.2mm units is the quantity being provided at launch.

No calculation relationship between the two.

James @ May 25th 2007 3:24PM

Wait, so Gamestop alone sold 4 million preorders, but they're only shipping 4.2 million in the initial batch? Who's getting screwed out of a game, then?

Not that it much matters to me -- until they make age-restricted servers (which they all should be, since the game is M-rated), they're not getting my money.