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The Xbox 360’s strong performance on Black Friday wasn’t enough to help Microsoft (NSDQ: MSFT) close the sales gap with rival Nintendo in the gaming console market, according to research group NPD.
In fact, Nintendo’s red-hot Wii system outsold the Xbox by almost 3-to-1 in November. Wii shipments in the month totaled 2.04 million, while Xbox shipments came in at 836,000. Sony (NYSE: SNE)’s PlayStation 3 ranked a distant third, with shipments of just 378,000 units, said NPD.

In the portable market, the Nintendo DS ranked first with 1.57 million shipments–easily topping the Sony PSP’s 421,000 shipments.
Xbox 360’s middling performance may come as a shock to Microsoft.

Last week, Redmond said sales of its Xbox 360 gaming and entertainment console increased 25% on Black Friday compared with last year’s post-Thanksgiving shopping binge, and outpaced sales of PlayStation 3 3-to-1.

Microsoft said console sales were spurred by the recent release of hot-selling games like Gears Of War 2, Fable II, and Lips.

In its most recent quarter, Microsoft reported that Xbox 360 shipments increased 22% year over-year to 2.2 million units. The jump comes as Microsoft takes steps to reinvigorate the Xbox platform and position it as more than just a gaming device.

Last month, the software maker officially launched New Xbox Experience, a service that combines the company’s Xbox 360 gaming console and Xbox Live online network into a platform for streaming Netflix (NSDQ: NFLX) movies, holding chat sessions, sharing photos, and engaging in other online activities.

For many consumers, the most compelling feature of New Xbox Experience will be the ability to instantly stream HD movies and TV episodes from rental house Netflix. Among the 360 titles available are La Vie en Rose, Flawless, and Heroes.

The Xbox 360 is currently the only gaming device capable of providing a direct link to Netflix.

Microsoft in September slashed the price of its Xbox 360 video-game console by almost 30% for some models.

The cuts saw the price of the entry-level Xbox 360 Arcade system fall from $279 to $199. The basic Xbox 360 model, which features a 60-GB hard drive, dropped to $299 from $349. The high-end Xbox 360 Elite, which includes a 120-GB hard drive, now sells for $399 — down from $449.

In an effort to keep “bandwidth hogs” in check, AT&T is testing the idea of placing limits on how much Internet data its subscribers can transfer each month.

The test, which began being applied in the Reno, Nev., area on Saturday, limits customers of AT&T’s slowest DSL service to 20 GB of monthly data transfers, while users of the fastest service will be limited to 150 gigabytes. Customers will have access to an online tool to track their usage and will receive notification when they reach 80 percent. Those who exceed their limits will be charged $1 per gigabyte.

Existing subscribers will be assigned the 150GB limit regardless of their subscription level. The limits will apply only to new subscribers in the Reno area.

The caps are intended to discourage heavy users, such as virtual reality gamers and file swappers, from causing network congestion. AT&T estimates that just 5 percent of its subscribers use up to 50 percent of the network’s capacity.

Regular Web and e-mail use shouldn’t come anywhere close to the limits, but regular users of streaming services such has Netflix could test that limit. A standard length movie downloaded over the Internet requires about 2 gigabytes.

The test follows new plans introduced last month by Comcast, the nation’s second-largest Internet service provider, in which subscribers would get a 250 gigabyte limit. Users who exceed that limit would reportedly face fines or possible suspension of their account.

Time Warner Cable and FairPoint Communications are also reportedly exploring instituting traffic limits.

Source: cnet.com