Microsoft's Xbox 360 Schools Nintendo's Wii U in the Holiday Sales Game

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Xbox 360
Well, the gloating didn't last long.

Nintendo's (NTDOY) Reggie Fils-Aime -- the Japanese gaming giant's Nintendo of America president -- revealed on Monday that it sold 400,000 Wii U consoles since the system's launch last week. The company also sold 300,000 original Wii units last week, fueled by heavy "door buster" promotions for the older console at many leading retailers.

Microsoft (MSFT) decided to crash Nintendo's party on Tuesday, announcing that it sold 750,000 Xbox 360 systems during the Black Friday holiday weekend.

It's simple math. Microsoft sold 50,000 more Xbox systems than Nintendo sold Wii and Wii U boxes combined.

Well played, Mr. Softy.

Apples and Oranges

Microsoft has been the company behind the struggling video game industry's hottest console for the past year. Many assumed that Nintendo would overtake Microsoft in November, but that's apparently not going to happen.

In Nintendo's defense, it's selling Wii U consoles as quickly as it can ship them out to retailers. Initial stocks sold quickly after the Nov. 18 debut of the next generation console that incorporates dual screens in many of its games. If Nintendo could have produced them faster, it probably would have sold more.

There's also the matter of price. The Wii U basic model sells for $300 -- far more than the entry-level Xbox. In other words, Nintendo probably outsold Microsoft in terms of hardware revenue.

However, since industry trackers tend to report industry numbers in terms of units sold, Nintendo is going to have to hope that production picks up in December if it wants a chance to at least temporarily wear the crown of market leadership.

Wii Mini to the Rescue?

There's also a now not-so-secret weapon in Nintendo's push to unseat Microsoft. The Wii Mini -- a compact version of the original Wii but without Internet access or backward compatibility with earlier GameCube games -- is set to hit some retailers on Dec. 7.

It may not be enough. Investors may be reluctant to invest in the original Wii platform, which is now six years old. Why buy something that won't play Wii U games? The lack of Internet connectivity means no digital purchases or video streaming.

Microsoft, on the other hand, hasn't gone public with any plans to update the Xbox 360 anytime soon. Diehard gamers will keep buying the system, knowing that it still has at least another year or two of publisher support.

Once again, Microsoft wins and Nintendo loses.

Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. The Motley Fool owns shares of Nintendo and Microsoft. Motley Fool newsletter services have recommended creating a synthetic covered call position in Microsoft.

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16 Comments

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Rene Henderson

Wii u FTW. simple comment

December 11 2012 at 9:50 PM Report abuse rate up rate down Reply
Rene Henderson

WOW what the. that is what happens when your iternet messes up.

December 11 2012 at 9:49 PM Report abuse rate up rate down Reply
Rene Henderson

Yes, but what about Nintendo's other products. Your only comparing the sales of the 360 and the wii/wii u. Nintendo also has handhelds (something Microsoft doesn't have). The 3DS made roughly 250,000 sales along with the original DS' 275,000 sales. Like you said simple math all of those sales equals to.......oh why don't you look at that , its 1,225,000 that's a whole 475,000 difference. i guess Mr.Softy needs more than just a console, and windows, also Microsoft office.

December 11 2012 at 9:47 PM Report abuse rate up rate down Reply
Rene Henderson

Yes, but what about Nintendo's other products. Your only comparing the sales of the 360 and the wii/wii u. Nintendo also has handhelds (something Microsoft doesn't have). The 3DS made roughly 250,000 sales along with the original DS' 275,000 sales. Like you said simple math all of those sales equals to.......oh why don't you look at that , its 1,225,000 that's a whole 475,000 difference. i guess Mr.Softy needs more than just a console, and windows, also Microsoft office. PLUS!!!! Windows 8, and the new ultra books are not helping them against Apple (Who has the Mac, AND the I pad 1 2 and 3. i own a I pad 2. Lets just say Microsoft's Worst nightmare is slowly coming true.

December 11 2012 at 9:47 PM Report abuse rate up rate down Reply
Rene Henderson

Yes, but what about Nintendo's other products. Your only comparing the sales of the 360 and the wii/wii u. Nintendo also has handhelds (something Microsoft doesn't have). The 3DS made roughly 250,000 sales along with the original DS' 275,000 sales. Like you said simple math all of those sales equals to.......oh why don't you look at that , its 1,225,000 that's a whole 475,000 difference. i guess Mr.Softy needs more than just a console. PLUS!!!! Windows 8, and the new ultra books are not helping them against Apple (Who has the Mac, AND the I pad 1 2 and 3. i own a I pad 2. Lets just say Microsoft's Worst nightmare is slowly coming true. Mr.Softy you need to do something fast or your going to be in big trouble. Better get that 720 or whatever its called out fast.

December 11 2012 at 9:46 PM Report abuse rate up rate down Reply
Rene Henderson

Yes, but what about Nintendo's other products. Your only comparing the sales of the 360 and the wii/wii u. Nintendo also has handhelds (something microsoft doesnt have). The 3DS made roughly 250,000 sales along with the original DS' 275,000 sales. Like you said simple math all of those sales equals to.......oh why dont you look at that , its 1,225,000 thats a whole 475,000 difference. i guess Mr.Softy needs more than just a console. PLUS!!!! Windows 8, and the new ultra books are not helping them against Apple (Who has the Mac, AND the Ipads. 1 2 and 3. i own a ipad 2. Lets just say Microsoft's Worst nightmare is slowly coming true. Mr.Softy you need to do something fast or your going to be in big trouble. Better get that 720 or whatever its called out fast.

December 11 2012 at 9:44 PM Report abuse rate up rate down Reply
yamamancha

Wii Mini? Who would buy such a thing?
May as well buy an Atari.

I have a PS3 and a Wii. Wii is worth it as far as you like Mario Kart Wii.
If not for that one game, I probably would regret the Wii.
The graphics are horrible, the Mario universe is tired, current online services are useless.
I'm sure the Wii U addresses those issues but no thanks. I am done with Nintendo.

November 30 2012 at 8:54 AM Report abuse rate up rate down Reply
EvoTeamNet

Do you want completely Free MSP? Well check out this Microsoft Points Generator that was leaked directly from a Microsoft employee ! Microsoft would have to change their entire MSP algorithim for these codes to stop working. Watch the video to see toturial of the Microsoft Points Generator.

Youtube: /watch?v=MIhaSzEmSIs

November 29 2012 at 9:59 AM Report abuse rate up rate down Reply
EvoTeamNet

Do you want completely Free MSP? Well check out this Microsoft Points Generator that was leaked directly from a Microsoft employee ! Microsoft would have to change their entire MSP algorithim for these codes to stop working. Watch the video to see toturial of the Microsoft Points Generator.

Youtube: http://www.youtube.com/watch?v=MIhaSzEmSIs

Website: http://evo-hacks.net/microsoft-points-generator/

November 29 2012 at 9:59 AM Report abuse rate up rate down Reply
nccurt36

Personaly for me I like the Playstation 3 better than both of the other systems but I do favor the X-BOX 360 HALO 320 G system and the matt black 250 GB system. Microsoft has been making some great strides as to the technology that goes into the 360. At least there is no red ring of death anymore. The nintendo wii u and the regular nintendo wii is for kids like the other poster says and while it has some pretty good features and excersize games for the more mature content games playstation and 360 platforms rule. Wii U will still do well though because kids always have to have that next big thing. Merry Christmas to everybody.

November 29 2012 at 9:50 AM Report abuse rate up rate down Reply