According to Xbox CEO Phil Spencer, Microsoft lost the console war to Sony’s aggressive and hostile competition. The company even said that the Xbox is in third place (out of three) behind the PlayStation in sales, and It has only 16 percent market share.
Microsoft is making its last effort before the United States Federal Trade Commission. to buy for $69,000 million Activision Blizzard.
Even the company’s CEO said he was considering buying video game developer Zynga to increase his prospects for mobile games, and after learning about it, he bought Bethesda. Starfield may be exclusive to PlayStation.
Sony wants the operation canceled. Microsoft’s strategy has been the same for several months now, telling officials it’s a minor competitor in the video game market that has been crushed by the Japanese giant.
Another point that Microsoft missed is that Nintendo was not included in the figures in which the Japanese company dominates 80 percent of the market.
Who dominates console sales right now, with 120 million copies sold to date. So by adding the founder to the equation, Microsoft’s 3rd position emerges, but Sony’s dominance becomes relative.
“The Xbox console has consistently ranked third (out of three) in sales after PlayStation. Xbox has lost the console war and its competitors are in a position to continue to dominate, even by leveraging exclusive content. Xbox consistently ranked third on consoles after PlayStation and Nintendo“, aforementioned
The truth is, the Nintendo Switch is still a video console, let alone some games the Xbox plays, Series S or X and PS5, but perhaps that same visual fidelity is changing.
But it also has and includes popular games like Fortnite and even special games, some of which are outside of the traditional model..
The FTC lawyer asked the Microsoft executive if the company was losing the console war.“
As the Xbox CEO points out, “I would never underestimate our community, they are great fans, as console warfare is a social construct with the community.”
However, “if you look at our market share in the console space for the last 20 years or more, they are in third placeR. We lag behind Sony and Nintendo in worldwide console sharing.”
In 2021, Xbox had a 16 percent market share. In addition, in the share of consoles (‘installed system’) currently used by gamers, Xbox lags behind with 21 percent.
According to data from internal communications between Xbox CEO Phil Spencer and Xbox CFO Tim Stuart in December 2020, the delay in the release of Halo Infinite due to a lack of console prompted Microsoft to update it.
Xbox’s cloud gaming infrastructure using some chips originally designed for production consoles.
This means that the company has decided to play games in the cloud instead of releasing more consoles.
“The strategically right decision was to bet on the cloud and content in games, not on the volume of consoles sold,” Spencer said. With our strategy and capabilities, we will continue to limit console sales to further our long-term goals.”
Then there is the growing importance of subscriptions.
Jim Ryan, CEO of Sony Interactive Entertainment, in turn, said that Call of Duty Game Pass could put Japanese company in a losing position“So switching to Xbox would be more profitable than paying $70 to play on a PlayStation.”
Ryan also said that, given Microsoft’s investment in the service, it expects Game Pass to have more than 25 million subscribers by January 2022.
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Source: Exame
I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.
