Microsoft won't be revealing Xbox 720 hardware at E3 2012

By on March 16, 2012, 10:00 AM

Contrary to popular rumor, Microsoft isn’t planning to showcase their next generation Xbox gaming console at E3 2012. Company spokesperson David Dennis said Microsoft won’t discuss new Xbox hardware at this year’s show, leading two people with knowledge of the subject to speculate an E3 2013 reveal instead.

Microsoft seems confident that they can coax another successful year out of the Xbox 360, and perhaps rightfully so after 2011 resulted in the best year of sales thus far for the console. Bloomberg notes that the company’s entertain division posted a 45 percent sales gain to close at $8.91 billion for the fiscal year ending in June. The 360 outsold both Nintendo and Sony in the gaming marketplace and even beat out other accessories like DVD players and home theater systems, according to Microsoft.

Aside from pleasing anxious gamers with a new system, there’s really no reason for Microsoft to introduce next generation hardware this year. Redmond isn’t feeling pressure from other manufacturers to rush a console out the door and the Kinect motion sensing accessory is leading the way for a whole new breed of games.

Furthermore, it’s public knowledge that most consoles aren’t profitable within the first few years after release. Michael Pachter, an analyst for Wedbush Securities, estimates that Microsoft is banking around $115 from each $300 Xbox 360 console sold. Passing up on guaranteed profit like that wouldn’t be in Microsoft’s best interest.




User Comments: 9

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Guest said:

It wont be a success if you cant play used games.

mvitello said:

Microsoft can thank Sony for the increase in sales this year. After the whole Geohot incident and the PS network going down for months at a time, all the hardcore online games turned in their PS3's and bought XBOX 360s instead.

Guest said:

Eh, I was hoping it would be announced at the next E3, but I knew it wouldn't be out this year...

Guest said:

"Aside from pleasing anxious gamers with a new system, there's really no reason for Microsoft to introduce next generation hardware this year."

Current generation of console gamers have crazy low standards. It will be almost 8 years by the time the next Xbox is out and MS is still pushing 360 for $250 with some game bundles for $300. Sony is also selling PS3 for $250-300 (Uncharted Bundle). Ridiculous. At this point in their life-cycle, these systems should be $149 at most. The fact that people are willing to drop $250+ on a 7 year old console is flabbergasting.

I don't understand their logic. Eventually they'll want the next Xbox and it will probably take 5 years for it (by 2018) before it drops to $250. So might as well take the $250 they were going to spend on the 360 and $250 on the next Xbox in 5 years from its own launch and just get the new Xbox on launch date.

MS is probably not ready to launch yet. If they hype the new console at this year's E3, but won't launch it until Holiday 2013, then that's too far away to waste so much marketing effort. Also, the specs are probably not finalized.

Guest said:

Life is short, upgrade more. Even a car at 5 years is outdated.

ikesmasher said:

I want a new console, and i want no more DRM and anti share stuff than there is right now. I want to play my xbox 360 games on it and i dont want to pay to play used games online.

But what do I know? im just a stupid consumer, after all.

Gamesinner said:

Good cause I'm not buying if you can't play used games. These f**kers already get to much of my money.

Burty117 Burty117, TechSpot Chancellor, said:

Probably someone high up at Microsoft went "why the hell did we remove the optical drive for?! Ok everyone, back to the drawing board".

now they can't show it off until next year, agree with the comments above though, why are they still charging so much for the consoles? The ps2, original Xbox and the GameCube came out at lower prices and all steadily fell, Microsoft seem eager to NOT drop prices? Sony could take advantage of that but hey, Sony are not very smart...

Guest said:

$60 a game your damn right about taking our money!

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