It is not new that Microsoft abandoned the idea of selling more consoles than Sony and Nintendo. In any case, this is the discourse that has been held publicly since the difficulties encountered by an Xbox One, which was struggling to capitalize on the excellent results obtained by the Xbox 360 a generation earlier. The big maneuvers then started, starting with the systematic release of all home games on PC until the launch of Xbox Cloud Gaming, passing of course by the articulation of this whole strategy around a master subscription, the Xbox Game Pass, which today can count on a family of more than 20 studios.
While the launch of the Xbox Series was an opportunity to set the record straight and rebalance the situation with the PlayStation 5, the finding two and a half years later is not encouraging for Microsoft. At a time when they’re supposed to flourish, its consoles started 2023 with sales down 30%. At the same time, Sony Interactive Entertainment sold 6.3 million PS5s, a volume never seen in the first quarter. For Phil Spencer, the speech according to which Microsoft does not seek to sell as many consoles as the competition and must seek its happiness elsewhere is therefore more relevant than ever.
« We are not intended to sell more consoles than Sony or Nintendo. There really is no miracle solution for us. I know this is going to upset a lot of people, but the truth is when you’re third in the console market and the two major players are as strong as they are and in some cases very quietly focus on partnerships and other things that complicate things for the team, it’s our fault, and no one else’s. »
And if everything had been played the previous generation?
But the speech by Phil Spencer that has been the most talked about since yesterday is undoubtedly this slightly defeatist excerpt on the idea that even an accumulation of great games would not be enough to reverse the trend on the console market. The manager believes that the Xbox One generation was the worst generation to lose and that the brand still suffers from it today.
« And I see comments that you just have to make great games and it all works out. It’s not fair to say that all we have to do is make great games and suddenly console market shares change dramatically. With the Xbox One we have lost the generation that should not be lost, the one where everyone has built up their digital library of games. We want our Xbox community to feel good, but this idea that releasing more great games would be enough to win the console race doesn’t match the reality for most people. »
« 90% of people who go to a store every year to buy a console are already members of one of the three ecosystems and their digital library is there. This is the first generation where the most important games are games from the previous generation, like Fortnite, Roblox and Minecraft. The continuity from generation to generation is really strong. I see a lot of pundits wanting to go back to the days of cartridges and discs, where each new generation wiped the slate clean and console market shares could reverse. This is not the world we live in today. There’s no world where Starfield is an 11 out of 10 and people start selling their PS5s. It will not happen. »
This observation to return to the fact that Microsoft will continue to extend its ecosystem and its Game Pass subscription on all screens. Despite weak console sales, Xbox also achieved its second best turnover for a January-March quarter. In addition to more and more subscribers, CEO Satya Nadella also mentioned “ a record number of users for that same quarter across the Xbox ecosystem.
« We have this unique vision because we know what creators want. Creators want to create games that can reach gamers on any screen. People play with their friends no matter what screen they’re on, and the console is at the heart of the Xbox brand. there is no doubt. So we’ll stay focused on the console experience, but I know some people want the green team to be stronger than the blue team, and I’ll just say there’s no gain for Xbox in staying in the wake of someone else. We need to move forward and chart our own path with Game Pass, with our people, with Xbox Cloud Gaming, and with the way we make games. »
Yes, but to really get this ecosystem off the ground, Microsoft dreamed (and still dreams) of offering itself a historic springboard by integrating Activision Blizzard into its accounts, which would have given it power over the invaluable Call of Duty franchise while propelling it into a good position in the mobile market which it covets strongly.
« We are disappointed, but we will appeal. We won’t let go. The company remains very involved. Activision Blizzard King is not our strategy, but it is an accelerator of our strategy. »
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