Strategic Shift Focuses on Game Pass, xCloud, and PC Gaming
Microsoft is reportedly considering a significant change in its gaming strategy by stopping the advertising of its Xbox Series X|S consoles in certain regions. According to Tom Warren's report in The Verge newsletter, a source has claimed that Microsoft will halt console marketing in Europe, the Middle East, and Africa (EMEA).
SALES PERFORMANCE AND STRATEGIC REALIGNMENT. While exact sales figures for the Xbox Series X|S have not been officially disclosed, industry analysts estimate that total sales range between 25 to 30 million units. This figure starkly contrasts with the nearly 60 million PlayStation 5 units sold to date. The gap in sales performance has prompted Microsoft Gaming CEO Phil Spencer to underscore the continuing importance of consoles in the company's overall strategy.
Warren's newsletter highlights Microsoft's struggle to sell Xbox Series X|S consoles in various countries across the EMEA region, with insider information suggesting that the company may reduce the allocation of console stock to Europe. This move comes amid high scrutiny of Microsoft's gaming business, particularly in light of its substantial acquisition of Activision Blizzard. The decision to end console marketing in the underperforming EMEA region appears to be a reaction to the Xbox Series X|S's inability to compete effectively with PlayStation.
FUTURE PROSPECTS AND NEW INITIATIVES. Despite this setback for fans in Europe, this shift does not signal the end of Microsoft's console presence in the region.
Phil Spencer has alluded to "unique and powerful" initiatives that Xbox is working on, and Xbox President Sarah Bond has hinted at upcoming announcements for new consoles and hardware during the holiday season.
By redirecting focus towards Game Pass, xCloud, and the broader PC gaming market, Microsoft aims to leverage its strengths and address areas of underperformance.
IMAGES CREDITS: MICROSOFT / XBOX
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