When Microsoft unveiled its Xbox Series X|S almost three years ago, it was nothing short of a landmark moment in gaming. The cutting-edge gaming console, released alongside Sony’s PlayStation 5, was destined to be a game-changer.
Today, as fans and pundits attempt to decrypt the sales numbers of these next-generation consoles, a twist in the tale has emerged.
During the recent ID@Xbox presentation at a festival in Brazil, Microsoft unveiled the sales numbers for its Xbox Series X|S. The figure stands at 21 million units sold since their release.
Xbox Series X|S console sales are at 21M+ according to Microsoft at BIG Festival in Brazil.
Credit to @LucasTaves for this information. This is all part of an ID@Xbox presentation pic.twitter.com/cOYtQSfwxN
— John Welfare (@Welfare_JBP) June 29, 2023
Sony and Nintendo haven’t been shy about providing updated console figures, but Microsoft has chosen to remain silent for the better part of the past decade. Thus, audiences have been left with rough estimates about how well the Xbox One, and now, the Xbox Series S/X, are selling. And, while this comes off the back of a recent report that Microsoft has been struggling to sell the Xbox Series S/X and that it purposely tanked the sales of the console during the global pandemic, it appears that the company’s latest consoles aren’t doing so bad.
While 21 million units over three years is barely half of what the PlayStation 5 has managed to sell, it’s better than what the Xbox One managed during the same time period.
More importantly, Microsoft’s decision to buck the norm and cannibalize the Xbox One X and the Xbox Series X by releasing a much better and more economical console in the Xbox Series S is working. Based on the numbers, nearly half (48%) of Xbox Series S owners are new to the Xbox platform.
Given the numbers and what Phil Spencer recently said about the Xbox losing the console wars, it’s easy to assume that Microsoft is losing ground in the console market, but that’s not necessarily true. Instead, Microsoft is treading a different path, focusing less on consoles and more on the creation of an integrated gaming ecosystem.
Microsoft’s strategy revolves around Game Pass and Xbox Game Studios. The focus is to bring players to these platforms and cultivate a sense of community, regardless of the device used for gaming. In fact, statistics show that the Xbox platform is used by 15.6 million users monthly, a 20% increase from the previous year. Furthermore, Windows gaming PCs have a whopping 248.6 million active users, and the Windows Store receives 168.3 million monthly visitors. These figures reveal a different picture – Microsoft isn’t just selling consoles; it’s crafting a gaming experience that transcends console boundaries.
The Game Pass is a notable part of this strategy. Offering over 400 console games and more than 300 PC games, it caters to a broad user base, primarily from the US, Brazil, and Mexico. An intriguing slide in Microsoft’s presentation hinted at the advent of in-game advertising, suggesting yet another avenue for revenue generation beyond mere console sales.
With the guaranteed arrival of first-party exclusives like Starfield and Forza Motorsport later this year as well as the promise of more such as Senua’s Saga: Hellblade 2, Avowed, and Fable, by the next year and beyond, Microsoft’s strategic moves in recent years are starting to pay off. This doesn’t count the fact that Activision Blizzard will eventually join the fold, paving the way for the likes of Diablo and Overwatch to join the Game Pass library. Finally, Microsoft’s investments extend beyond its first-party titles, having shown a willingness to pay third-party publishers a massive amount to release their games on the Game Pass at launch.
Ultimately, it’s clear that Microsoft has chosen a different battlefield for the console wars. Yes, the company trails behind Sony and Nintendo in console sales, as its figures reveal, but perhaps this isn’t the point. Microsoft is keen to position itself not just as a console manufacturer but as a holistic provider of gaming experiences.
By extending its gaming reach beyond console sales, Microsoft hopes to close the gap with its Japanese counterparts albeit in a non-traditional manner.
The bottom line is that Microsoft is playing a different game. The Xbox Series X|S sales figures, while lower than PlayStation 5, tell only half the story. As Microsoft continues to build its Game Pass and Xbox Game Studios, it creates a comprehensive, cross-platform gaming experience that has the potential to revolutionize how we perceive the gaming industry.
Time will tell if this strategy proves to be a masterstroke in the long run.
