Microsoft's New Xbox One Sells Out

Like Sony, Launch Is Strong, But Questions Hang Over Console Business

Microsoft Corp.'s MSFT -0.11% new videogame console drew crowds for its debut, emulating an upbeat launch by rival Sony Corp. 6758.TO +0.32% while offering a different take on living-room entertainment.

The Redmond, Wash., tech giant said it sold more than one million units of its Xbox One videogame console in the less than 24 hours since its debut. The $499 device launched in 13 markets around the world, and sold out at most retailers. Microsoft said it is working to replenish stock as fast as possible.

The most important season for the gaming industry gets underway, Scott Austin reports in his look at the top tech stories of the week. Photo: Getty Images.

Microsoft had previously said preorders were sold out as well and predicted it would set a sales record. "We are on track for the biggest launch of any kind," said Yusuf Mehdi, head of marketing for the Xbox group, in an interview earlier this month.

But how long the strong demand will last for the Xbox One and Sony's new PlayStation 4, which also initially sold out, remains a matter of debate. The console videogame industry has struggled to show growth in recent years, as some consumers turned to games created for mobile devices and social networking websites.

Market research firm PricewaterhouseCoopers said it expects world-wide console game sales to rise 4.2% to $25.98 billion this year, and projects another 6.4% jump in 2014. That is still far less than the 28% growth the industry saw in 2007 after the last batch of new videogame consoles were released

One concern is that some people may have lost the console habit, while a younger audience growing up on mobile devices might never begin playing in the living room.

"We've lost some gamers into other things," said Paul Raines, chief executive ofGameStop Corp. GME -1.93%

Mobile games account for some of that decline, he acknowledged. But Mr. Raines said activities like using social media and online video streaming have just as much of an impact.

Still, gaming industry executives remain upbeat following the dueling console launches. Sony, which attracted large crowds for the PlayStation 4's launch on Nov. 15, said it sold more than one million units in its first day on the market. The device sells for $100 less than the Xbox One.