Day One Sales of Halo3

JRock3x8

Shared on Fri, 09/14/2007 - 10:58

I know this is going to be a huge deal, but I think we're getting carried away...

From XBox360fanboy.com :

Colin Sebastian, a semi super duper smart analyst from Lazard Capital Markets, is predicting that Halo 3 will make upwards of $200 million rather quickly, becoming one of the largest product launches ever. And even though Sebastian doesn't state a time frame for his Halo 3 $200 million in sales, we're guessing he's directly comparing his estimate to Halo 2's $125 million first day sales record. So, in comparison to Halo 2's numbers, it's very likely that the $200 million mark will be attainable as we can guarantee sales to be very, very good. Sebastian also goes on to mention that the million plus Halo 3 pre-orders coupled with Microsoft's marketing efforts will help in reaching the $200 million milestone and move some Xbox 360 hardware. Analysts ... you gotta love 'em.

My comment :

ok let's do some math :

US$200M / US$60 a pop = 3.33M copies sold.

1.0M preorders already accounted for so that leaves 2.3M that would have to sell on day one.  How many retail outlets are selling this game?  Every US Wal-Mart, Target, Gamestop, EB Games, Best Buy, Circuit City among other places.

Let's say Wal-Mart stocks it in 2500 stores, Target 1100, Best Buy 1400, Circuit City 600, Gamestop 4500 (store counts per Wikipedia)

ok, so at LEAST 2500+1100+1400+600+4500 locations in the US will have copies of Halo 3 on day 1.

That's about 10,000 retail outlets.

2.3M / 10,000 = 230 copies per location.

that's aggressive to say the least,

but i acknowledge the number of retail outlets may be understated by as much as half,

so cut the 230 per store to 115 per store - that's still a really agressive number ON TOP of all the preorders for a single day.

just to provide perspective, halo2 was $125M at a time when games cost $50.

That's 125M / 50 = 2.5M copies so it's not out of the question but it's still a massive jump of units sold.  (3.3M up from 2.5M is a 33% increase)

couple that with this being less than 2 years after console launch as opposed to Halo 2's 3 years after console launch and the higher console price at the time of game release and I just don't see this $200M thing happening.

Comments

YEM's picture
Submitted by YEM on Fri, 09/14/2007 - 12:20
"According to Gamestop officials, over four million preorders have been made for Halo 3 on Xbox 360."
JRock3x8's picture
Submitted by JRock3x8 on Fri, 09/14/2007 - 12:20
not to be crude but... Gamestop is full of shit.
YEM's picture
Submitted by YEM on Fri, 09/14/2007 - 12:22
this is probably not true but fuck if it was....
Baine's picture
Submitted by Baine on Fri, 09/14/2007 - 11:00
I think you just made a vessel in my brain pop.
jikado's picture
Submitted by jikado on Fri, 09/14/2007 - 11:01
Good post. Don't forget, 7-11and Toys 'r' us are selling, too, lol. Where in your equation do online sales get accounted for?
Aonon's picture
Submitted by Aonon on Fri, 09/14/2007 - 11:09
Also Halo 3 comes in three flavours. $59.99/$69.99/$149.99
CapnHun's picture
Submitted by CapnHun on Fri, 09/14/2007 - 11:10
Quick, someone give that man a JOB!!!!
JRock3x8's picture
Submitted by JRock3x8 on Fri, 09/14/2007 - 11:17
why would u buy it on launch day online unless u had pre-ordered it? 7-11 does not have the retail shelf space to make a material impact on the math. toys r us is a bad miss on my part but cutting the 230 to 115 more than accounts for it. The $70 and $150 versions are "limited" editions so I don't see that having a material impact on a large scale.
dkhodz's picture
Submitted by dkhodz on Fri, 09/14/2007 - 11:22
This is all assuming the $200M figure is for day 1. He could be referring to any time period... but I think the more-expensive limited editions help recoup that $200M figure. Also, pre-orders aren't necessarily paid in full on the day they are pre-ordered. So there is a lot of cash just sitting there waiting to be collected on day 1 from those 1million pre-orders, if I understand it correctly (I don't preorder games).
DarthClem's picture
Submitted by DarthClem on Fri, 09/14/2007 - 11:27
But what if everyone buys 2 copies on day one? Didn't think of that one, did ya? :D
Big0ne's picture
Submitted by Big0ne on Fri, 09/14/2007 - 11:30
And the biggest factor not accounted for..... Can M$ print and ship 3.33M copies of the game by Sept. 25th?
Kyosogi's picture
Submitted by Kyosogi on Fri, 09/14/2007 - 11:30
Would it make more sense to calculate penetration of Halo2 sales for Xbox and then extrapolate Halo3 sales to Xbox 360, seeing as this is part of a title? For example: 2.5 million Halo 2 copies sold to ??? million Xboxs = % Halo2 ownership for Xbox owners. You can safely presume high % Halo2 owners will be owners of Halo3, plus late entries to the Halo title. So you can presume the same penetration of the title to Xbox 360 owners, add in a 20% increase in retail price.... and maybe you come closer to $200 million. Even though Xbox 360 doesn't have a huge international presence, you exclude worldwide sales.
madwoman's picture
Submitted by madwoman on Fri, 09/14/2007 - 11:40
Let's face it, MC rocks! :) Now, BigOne has a really good point....can they achieve the goal of getting these things done and shipped to stores on time? After all, M$ is notorious for their "ball dropping".
JRock3x8's picture
Submitted by JRock3x8 on Fri, 09/14/2007 - 11:48
good points big one and kyosogi kyosogi - your point is exactly the one i'm trying to make - i don't think there are as many 360's out there today as there were xboxes in 2004 simply due to distance from console launch window and price. therefore unless the penetration of halo 3 to xbox 360 is MUCH higher than halo 2 to xbox, you can't get to $200M shipping 3.3M games is no small feat either, but if anyone can do it, MS can.
JRock3x8's picture
Submitted by JRock3x8 on Fri, 09/14/2007 - 11:49
oh and darth, come on man, let's be at least somewhat reasonable here :)

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