According to a reputable insider, Microsoft could reportedly tone down marketing efforts for Xbox consoles in several major regions due to declining sales performance. Since the launch of the Xbox Series X in holiday 2020, the current-gen console has been outsold by its direct competitor, the PlayStation 5, by a substantial margin.

While the exact sales figures of the Series X/S are unknown, as Microsoft stopped disclosing Xbox sales back in 2015, analyst estimates place them between 25 and 30 million units sold. For perspective, the PS5 has sold nearly 60 million units as of May 2024, almost doubling the approximate install base of the Series X/S. Microsoft Gaming CEO Phil Spencer acknowledged the massive sales delta between the current-gen machines last year and reaffirmed Xbox owners that consoles remain a priority for the company, while also hoping its in-development games might turn the tide in the future.

However, Microsoft has started to levy increased scrutiny on Xbox after its $68.7 billion merger with Activision Blizzard King, and it appears the company may be looking to do something about the lukewarm sales performance of Series X/S consoles. According to the latest edition of credible industry insider Tom Warren's "The Notepad" newsletter for The Verge, Microsoft could allegedly stop marketing the Xbox Series X/S consoles in Europe, the Middle East, and Africa (EMEA). Instead, the company will focus its marketing efforts on pushing consumer adoption of Game Pass, Xbox controllers, cloud gaming, and PC.

It's also been claimed that Microsoft will decrease allocations of Xbox console stock for Europe as a result of the diminished marketing push. Warren does note that he hasn't been able to thoroughly verify the information as it came from a "tip," so it should be taken with a grain of salt. However, it wouldn't be too surprising if the claims did pan out, as the current console generation is halfway over, and it seems unlikely that the Xbox Series X/S will start outselling the PS5 somehow. PlayStation has also been dominant in the EMEA territory for a while now, so Microsoft may just want to cut its losses and move on.

Microsoft potentially ceding the EMEA regions to PlayStation might be disappointing to a lot of Xbox fans, especially those in the EMEA, but it shouldn't be taken as an indication of the company throwing in the towel entirely for the console space. A next-generation Xbox console has been confirmed to be in the works, with several rumors suggesting that it could be a Windows handheld like the ROG Ally and possibly release in 2026. For now, though, it remains to be seen what Microsoft has planned for the current-gen Xbox consoles.

Posted: Jul 15, 2024 11:51 pm
Related Forum: Xbox Forum

Source: https://gamerant.com/xbox-console-sales-marketing-scale-back-regions/