This week Microsoft's results related to the most recent fiscal quarter were released. Here it was revealed that the Microsoft Gaming division had substantial growth compared to what was seen during the same period of time last year. However, it was also mentioned that the sales of Xbox Series X|S have declined substantially, thus creating a paradox for the entire industry, except for Xbox.
Amy Hood, CFO of Microsoft, revealed that console sales were lower than expected in the last fiscal quarter, which has resulted in low expectations for this area in the future. However, this is not due to a problem with the console itself, as was the case with the Xbox One during its first few years on the market. Instead, Low hardware sales are a consequence of Xbox's focus at the moment.
Instead of focusing on selling hardware where people can enjoy exclusives, Microsoft wants the Xbox brand to be available everywhere. This can be clearly seen with the fact that the company has not shared Xbox Series X|S sales in recent years.. At the moment we do not know exactly and officially how many of these consoles have been sold since their launch.
Currently, Xbox games are no longer only available on a Series Players can also access them through Game Pass on PC and cloud-enabled devices.. Day one releases on these platforms completely eliminate the need for a specific console to enjoy titles like starfield either Senua's Saga: Hellblade II.
In this way, it is more than clear that Xbox does not care whether or not you buy one of its consoles. The only thing they are interested in is increasing their profits by taking their properties to as many places as possible. This is the objective of Game Pass, and taking into consideration its financial reportwhere the Microsoft Gaming area had an impressive performance, they are achieving exactly what they want.
With this, The recent acquisition of Activision Blizzard King has given them a fantastic position in the mobile market. As if that were not enough, properties like Call of Duty and World of Warcraft still generate millions and millions of dollars a year, and it has already been made clear that these series will not be exclusive to Xbox, at least not for the moment.
This is another reason why Xbox Series X|S sales have decreased, and that is because Xbox is willing to bring its properties to other platforms. While it is true that they will still keep their exclusives, the company is willing to give PlayStation and Switch users the opportunity to play some of their most acclaimed titles, as it seems will happen with HiFi Rush in the future.
As Microsoft Gaming places greater emphasis on Xbox Game Pass and the ability to play its first-party titles on PC, the cloud, or even PlayStation 5, Series X|S sales will steadily decline, something that doesn't seem to bother them. On related topics, the arrival of HiFi Rush to other platforms is imminent. Likewise, multiple stores will stop selling physical Xbox games.
Editor's Note:
If this works for them, Microsoft and Xbox are within their rights to completely change their business models. At the end of the day, this is an industry, and what really matters is making money. However, it is sad to see this change happen in real time. At the end of the day, it's all about the games, and if these experiences manage to be good, the money will be in your pockets, no matter where it comes from.
Via: Forbes
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