The video game console war is a battle between three giants: Sony (Sony), Nintendo (ntdof) and Microsoft (msft,
In general, Sony and its PlayStation are considered the leaders, closely followed by Nintendo and its Switch. In third place are Microsoft and Xbox.
Even if this ranking is among many experts, three companies certainly don’t make it easy for themselves: the tech giant does not regularly publish sales data for its consoles, experts speculate. Let the planting game play.
But as the gambling industry grows, so does the interest in different players’ market shares. This has become even more important during the merger and acquisition wave.
Microsoft drew a lot of attention in January last year when it sold video game publisher Activision Blizzard for $68.7 billion (a TVActivision has popular franchises like Call of Duty, Candy Crush, and Warcraft.
Microsoft sold far fewer consoles than Sony
As part of Brazil’s antitrust agency CADE, which is reviewing the ATVI deal, Microsoft just made a revelation that will excite pundits but seems like an embarrassment to Redmond, the WASH, software and cloud giant.
In fact, in a document submitted to CADE, Microsoft states that sales of the Xbox One, the first generation of its console, were half the lifespan of Sony’s PlayStation 4 (PS4).
“Sony has overtaken Microsoft in terms of console sales and installed base, more than doubling sales [as] Xbox in the last generation,” writes the company in this 25-page document in Portuguese. (The Street translated the document. The disclosure is at the top of page 18.)
Sony recently said it sold 117.2 million PS4s, meaning that if Microsoft is right, the Xbox One sold 58.6 million units or fewer. Nintendo’s Switch has sold 111.1 million units so far.
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Microsoft’s revelation aims to convince Brazilian officials that competition in the region is strong enough to allow the deal to go through. This is in contrast to concerns expressed by Sony, which appear to be against the Microsoft activation transaction.
Microsoft is catching up
Microsoft declined to provide Xbox sales numbers from 2015, saying it prefers to focus on other barometers to measure its console’s success.
“Xbox hardware sales were down 11% and 8% on a currency-neutral basis,” Chief Financial Officer Amy Wood said during the company’s recent earnings call on July 26, without specifying the number of consoles sold.
Chief Executive Satya Nadella also told analysts, “We’ve sold more consoles than any previous Xbox generation and have been the market leader in North America for next-gen consoles for three consecutive quarters.”
According to analysts, Microsoft has learned from past shortcomings associated with Xbox One as it develops its new Xbox Series S/X console, which will follow Sony’s next-generation PlayStation 5 console.
According to research firm Ampere Analysis, Sony sold 17 million PS5 family consoles in 2021, while Microsoft sold 10.5 million Xbox series, a difference of 6.5 million units.
However, the company warned, “While Sony has global sales momentum at this early stage, it will be disappointed if product availability exceeds its potential.”
“Much like Sony did with the PS5, Microsoft has suffered significant losses on its high-end Series X devices, which has somewhat reduced its market potential. Microsoft has decided to update its cloud gaming servers. Components from the X series are also used here. Added pressure on consumer availability of its flagship console.”
Gameluster was the first to report Microsoft’s disclosure.