Xbox 720 Release May Boost Lost Windows 8 Sales For Microsoft

By Hilda Scott , Apr 22, 2013 03:38 PM EDT

The Xbox 720 gaming system has yet to be officially announced by Microsoft, but the buzz is already going strong. The release of the Xbox 720 may help Microsoft make up for the loss it suffered as a result of Windows 8.

Consumers love the Xbox and rumors have surfaced about the specs, games and release date of the next-gen Xbox 720 system. Among some of the rumored specs so far is that it will use x64 architecture and will have an Internet connection that is always on. There will also allegedly be a TV streaming service feature on the Xbox 720 and the potential revival of the NBC series Heroes.

Some of the game titles that may hit the Xbox 720 are Call of Duty, Bethesda, Sonic and Ready at Dawn. According to IGN, these are just a few of the rumored next-gen games quoted by a few sources. The gaming unit is expected to hit the market right before Christmas: great news for holiday shoppers.

This could also be great news in sales for Microsoft, since the company took a big hit with the release of the Windows 8 operating system. PC sales are still on the decline and only 3 percent of PC users worldwide has migrated to the Windows 8 operating system. According to The Verge, Microsoft will base the operating system that will run on the Xbox 720 on Windows 8.

Analysts at International Data Corporation (IDC) cited Windows 8 as the possible reason for the sales decline.

"Unfortunately, it seems clear that the Windows 8 launch not only didn't provide a positive boost to the PC market, but appears to have slowed the market," Vice President of International Data Corporation (IDC), Bob O' Donnell said

Other analysts say that the current mobile device trend also contributed to the reported 14 percent drop in PC shipments reported for the first quarter of this year. Current trends suggest that many consumers prefer to use tablets and smartphones over traditional PCs.  

"As consumers shift their time away from their PC to tablets and smartphones, they will no longer see their PC as a device they need to replace on a regular basis," Gartner Research Vice President Carolina Milanesi said. On the opposite end of the spectrum, Microsoft's Xbox 360 gaming system outsold all other systems in the U.S. with a reported retail of $402 million in total. 

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