Microsoft has lost the console war, at least that’s the argument the company plans to use to curry favor with the FTC. Microsoft argues that Xbox has “lost the console war”, demonstrating that it has been in third place behind the competition in many markets, in this case Sony and Nintendo. In addition, the company reveals that Xbox had a 16 percent share of console sales in 2021.
These data have been shared by Tom Warren and the medium The Verge. If this is true, we would be facing one of Microsoft’s last resources to deal with the FTC and try to get a final decision favorable to the situation that the company has been experiencing in recent months.
Microsoft has lost the console war, this is the argument that the company has used in the face of the FTC situation
In the document, Microsoft has stated that since it came to the video game market, it has always been outperformed by its competitors in console sales. During the last twenty years, this competition has had Nintendo, Sony and Xbox as its main exponents, facing each other in the well-known “console war”. A term that was popularly coined to define the competitive situation between the three companies.
«Sony is the dominant company in the sale of consoles. For more than two decades and five generations, PlayStation has been the dominant console in both the United States and the rest of the world.”
Xbox argues that for years they have lagged behind their competitors. To demonstrate this, Microsoft wanted to be more specific, arguing that in 2021 Xbox had 16% of the market, figures that are far from those of the competition. They have also specified that Xbox had 21% profit from the console market.
With this data Microsoft has played one of his last aces before the FTC to be able to get around the complicated situation that has been plaguing the company for months and that has made it impossible to close deals like the Activision Blizzard purchase.