The entertainment world of video gaming is both a nice arena and intense competition of innovation, gaming strategy and entertainment supremacy. So it’s been since MICROSOFT’s Xbox Series X and Xbox Series S gaming platforms started falling far behind Sony’s PlayStation 5 in a history of savvy competition and gaming technology regional trends. Entertainment consequences of the rivalry are unavoidable.
With MICROSOFT Xbox and Sony PlayStation trading blows in the console wars for more than two decades, that back-and-forth has become a convention in its war-action films. MICROSOFT has enjoyed some winners and tasted some losses. But it still occupies space alongside Sony in gamers’ living rooms. Barely. My colleague Peter Townsend recently reported that the PlayStation 5 had outsold the Xbox Series X|S nearly five to one in the first quarter of the 2023-24 financial year, based on an analysis by the analyst Daniel Ahmad of Niko Partners.
Looking closer at the shipment numbers, shows that the PlayStation 5 has shipped 4.5 million units last quarter, while MICROSOFT’s consoles managed to ship only one million in the same period. This indicates a clear shift away from the old 2:1 ratio, especially in relation to the last console generation.
To address these fiscal woes, MICROSOFT has had to close multiple studios, including the Hi-Fi Rush developer Tango Gameworks and Redfall creator Arkane Austin, sparking fan criticism and serious questions about the strategy of MICROSOFT’s gaming business and the executive leadership of its Xbox division.
As the gaming industry keeps changing, MICROSOFT is trying to diversify its empire. The announcements of an Xbox mobile game store (for games like Candy Crush and Minecraft) are steps toward gaming on mobile devices – but what are they doing to maintain a position in the console market?
One example so far has been the Post’s willingness to air debate around the future of the Xbox Call of Duty franchise, after MICROSOFT acquired Activision Blizzard. The Post has speculated about the possibility that the leading franchise of a leading assortment of all-time bestselling video games might be integrated into the Xbox Game Pass subscription service – a move that might boost console sales but not the revenue of the established brand.
Those strategic moves, and the debates that swirl around them, don’t change the underlying fact that MICROSOFT’s position in the games business seems, to me at least, to be only getting weaker after all these years. The likes of Sony (much more coherently focused on its long-term affairs) are doing a better job of kicking MICROSOFT’s butt than I think anyone expected all those years ago. Just how long before a world without an Xbox?
MICROSOFT is one of the largest technology companies in the world, well known for its popular Windows operating systems and Office productivity suite, but also for much more. To diversify its technological offerings, MICROSOFT decided to jump into the world of gaming – but that’s hardly the only technology domain it has stakes in. MICROSOFT is deeply involved in cloud computing and artificial intelligence, as well as many other innovations. Despite its bumpy entry into gaming, MICROSOFT remains a major global technology player, with a hand in just about every major technological innovation.
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All in all, as things stand now, there are those in the corner of the company wise enough to realise that it’s not a pure maths-based numbers game. Evolving beyond the conventions of gaming, beyond metrics that still fuel a lot of conventional thinking, and embracing the emerging opportunities will foster innovation. Also, it is no coincidence that MICROSOFT has published a carefully worded press release detailing its efforts to bring Call of Duty to the Xbox Game Pass if a MICROSOFT acquisition of Activision Blizzard does not go through. If you want to sell your MICROSOFT consoles or devices to Gizmogo, visit our Trustpilot certified website. The gaming evolutionary path being laid by the company might just be the one we game well into the future.
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