Xbox: Microsoft admits losing the console war

Xbox, PlayStation, Switch… Microsoft admitted having lost the console war to Sony and Nintendo. It is in a document provided on the occasion of the case opposing Microsoft to the FTC in court to try to defend the takeover of Activision Blizzard for nearly 69 billion dollars.

Microsoft confirms that it has lost the console war

Part of the document, submitted by Microsoft, describes its entry into the video game industry in 2001, when its first Xbox was beaten by Sony and Nintendo in sales with a “significant margin”. And according to Microsoft, it has been steadily losing the console wars during this time.

“The Xbox console has consistently ranked third (out of three) behind PlayStation and Nintendo in sales. In 2021, Xbox’s share was 16%, compared to [édité] And [édité] respectively for Nintendo and PlayStation. Similarly, when it comes to console revenue and the share of consoles currently in use by gamers (installed base), Xbox comes third with 21%, while PlayStation and Nintendo have respective shares of [édité] And [édité] », Microsoft said. As we can see, some passages have been edited, that is, they are not publicly available.

Microsoft goes on to explain that it bet on a different strategy than its competitors, in particular by generating profits through game sales rather than console sales and by selling its consoles at a loss. The group hoped to sell many games to compensate for the loss of sales of its consoles.

Regarding the takeover of Activision Blizzard, Microsoft has already received the green light from certain regions (including the European Union). But others don’t want to. There is the United Kingdom and the United States in this case. The FTC is for the United States. Microsoft must defend its case in US courts to hope to move the case forward.