Xbox has a catching up to do in the console market share
PlayStation is far superior in the market, but things may change.
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Key notes
- Microsoft execs arrived at an EU hearing to talk to antitrust regulators & the media amidst the Activision acquisition deal.
- President Brad Smith made quite a remark during the press conference.
- However, Sony has made its position clear. They're eager to block the deal.
Microsoft boss claims that Xbox is losing in the console market share against Sony’s PlayStation, but things may be changing soon. Boss Brad Smith spoke to the media amidst the recent fuss of the tech giant’s attempt to acquire Activision Blizzard.
According to him, Sony’s PlayStation outsold Xbox by 69/31 globally towards the end of 2022—seemingly forgetting to bring Nintendo’s numbers into the equation.
“Think about the market in Europe. It is a market where Sony has an 80% share. Globally, it’s about 70/30. In Japan, it’s 96 to 4. And while there are some fluctuations over time, these numbers have been remarkably steady for two decades. Even last year, when Sony suffered constraints in its supply chain and it saw its numbers dip, they came back strong in the fourth quarter as their supply chain recovered.”
In fact, as research by an analytics firm Ampere Analysis confirms, Xbox flagship Series X/S has only sold 18.5 million. Compared to Sony PlayStation 5’s 30 million, Microsoft still has a lot of catching up to do.
Activision’s Call of Duty franchise is such an important title that a console couldn’t succeed without it, so it’s understandable why Sony has been trying to hijack the deal out of fears that many of its players may migrate to Xbox.
However, Microsoft reassured that will keep COD with content parity of PlayStation consoles (plus Nintendo) for another ten years.
What’s going on between Microsoft’s Xbox and Sony’s PlayStation?
Microsoft tried to acquire Activision Blizzard, home to Call of Duty, Sekiro, and many beloved, for almost $69 billion, but the deal went sideways.
Regulators worldwide have been approving the deal, but currently, the US, Europe, and the UK are on the opposition team. They fear that it could prevent innovation and slow down market competition due to Microsoft’s stature.
Microsoft execs, along with representatives from Activision, Sony, and Nvidia were present at an EU hearing earlier. The Redmond-based company tried to convince the regulators that the deal is not non-competitive.
Their counterargument is that they’d keep Call of Duty on PlayStation for 10 years. Plus, they’ve signed a lucrative expansive deal with Nintendo and Nvidia to bring Xbox titles to the console and the GeForce NOW could gaming service.
What are your thoughts on this deal? Let us know in the comments!
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