Microsoft has acknowledged that it has lost the “console wars” to competitors Sony and Nintendo. In a court document submitted during a hearing regarding its acquisition of Activision Blizzard, Microsoft stated that its Xbox console has consistently ranked third in sales behind PlayStation and Nintendo since its launch in 2001. The document revealed that Xbox had a 16% market share in 2021, while Nintendo and PlayStation had higher shares. Microsoft’s latest consoles, Xbox Series X and Xbox Series S, have sold 21 million units as of April 2023, compared to approximately 36 million units each for PlayStation 5 and Nintendo Switch. As a result, Microsoft has shifted its focus to delivering software and expanding its Game Pass subscription service, aiming to become the industry’s first Netflix. The company generates profits through game sales rather than console sales, subsidizing hardware costs to attract gamers and making up revenue through game and accessory sales. Sony has expressed concerns about Microsoft’s acquisition of Activision Blizzard, with PlayStation boss Jim Ryan indicating that they may not share information about a hypothetical PlayStation 6 with Call of Duty developers if the acquisition goes through, potentially affecting PlayStation users.
Source: Kotaku, GamesRadar
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