The ninth-generation console wars among Xbox, PlayStation, and Nintendo are continuing at full speed. Sony currently seems to be leading the race with its PS5, while Microsoft is doing its best to close the gap, or at least that’s what we believed. According to the latest reports, it appears that Microsoft has been sacrificing Xbox Series X sales in favor of investing in cloud gaming. Here are the details…
Microsoft Bets on Cloud Gaming, Sacrifices Xbox Series X and S Sales
Microsoft released the Xbox Series S and X in 2020. These consoles were powerful, and Microsoft hoped they would help the company win back gamers who had switched to PlayStation. However, it seems that Microsoft is now prioritizing cloud gaming over its consoles. In an internal email exchange, Xbox chief Phil Spencer and CFO Tim Stuart said that Microsoft had been making “tradeoffs” in order to invest in cloud gaming, even if that meant sacrificing Xbox Series X sales.
As you know, Microsoft has been trying to buy Activision Blizzard, but the legal process is making it difficult. During the FTC hearing about this process, some internal discussions at Microsoft were revealed. These discussions showed that Microsoft is prioritizing cloud gaming and content over console sales. Phil Spencer, the head of Xbox, said that “we believe in our tradeoffs for Cloud and Content in Gaming over console volume.” This means that Microsoft is willing to sacrifice some console sales in order to focus on cloud gaming and content. Unfortunately, these leaks will disappoint many Xbox enthusiasts.
In order to make cloud gaming more appealing to gamers, Microsoft has been investing heavily in building out its cloud infrastructure. The company has also been working on a dedicated Xbox streaming device that would make it easier for people to access cloud gaming. However, it is unclear when this device will be released. Microsoft’s decision to sacrifice Xbox Series X sales for cloud gaming is a gamble, but it seems is one that the company is willing to take.
RELATED:
- Xiaomi Band 8 vs Honor Band 7: Specs Comparison
- Microsoft announces price hike for Xbox Series X and Xbox Game Pass
- PS Plus to Get Older First-Party Games, But Not New Releases: What This Means…
- Microsoft introduces Xbox Series S Carbon Black edition with up to 1TB storage
- The End of the PlayStation 5 Scalping Era: Prices Are Cheaper than Ever
(via)
