Why Xbox Has Decided to Keep Console Sales Numbers Under Wraps
Xbox's decision to withhold console sales figures initially raised eyebrows, leaving fans puzzled However, this strategic move by the gaming giant has a deeper purpose, defying conventional expectations and challenging industry norms
In 2015, Microsoft stopped reporting Xbox sales numbers, and now the company has provided more insight into that decision. Xbox CFO Tim Stuart stated at the Wells Fargo 2023 TMT Summit this week that Microsoft chooses not to publicly disclose these figures because, in their view, a unit-sales number alone does not offer the clearest picture of the overall performance of the Xbox brand.
It is worth noting that both Sony and Nintendo announce new hardware sales numbers every quarter. Xbox is generally considered to be in last place in terms of console sales compared to PlayStation and Switch, which may also be a contributing factor to Microsoft's decision not to disclose console sales figures.
At the summit, Stuart expressed initial confusion about the Xbox business not providing console sales numbers, but emphasized that the focus is now on content and services. He emphasized that the success of Xbox is now measured by customer numbers and the financial performance of the brand as a whole, rather than just console sales.
Prior to this, Phil Spencer expressed that console sales figures do not accurately indicate the overall health of the ecosystem. Stuart's objective is to expand Xbox's reach and increase spending among Xbox users. Microsoft is achieving this by providing a variety of purchasing options, such as outright game purchases, Game Pass subscriptions, or earning mobile game rewards through ad-watching.
The executive stated that areas such as Africa, India, and Southeast Asia are not primarily focused on console gaming, prompting Microsoft to emphasize streaming and mobile games in those regions. He emphasized that the mobile game sector is the largest and most financially successful segment of the gaming industry as a whole. Stuart estimated that the console market is around a "couple hundred million," while the PC market is approximately 400 million. In contrast, he noted that the potential audience for mobile gaming is in the billions.
This is partly why Microsoft sought to acquire Activision Blizzard - to gain access to the company's popular mobile game franchises, including Candy Crush, Call of Duty Mobile, Diablo Immortal, and Warcraft Rumble. Stuart emphasized the challenge of entering the mobile market and highlighted that by acquiring Activision Blizzard, Microsoft instantly becomes a major player in the industry.
Looking ahead, Stuart hinted that Microsoft aims to utilize Activision Blizzard's expertise in mobile gaming to develop experiences based on Microsoft's own intellectual property. However, no specific Microsoft mobile games, such as Halo Mobile, were announced, as it is still early days for Microsoft in the mobile games sector.
Also during the speaking event, Stuart revealed that Microsoft wants to bring Game Pass to PlayStation and Nintendo devices. He also discussed why he believes AI will be great for gaming.
Editor's P/S
As a Gen Z netizen, I have mixed feelings about Xbox's decision to keep console sales numbers under wraps. On the one hand, I can understand why they would want to do this. Console sales numbers are often used as a way to measure the success of a gaming platform, and Xbox has been consistently trailing behind PlayStation and Nintendo in terms of sales. By not releasing these numbers, Xbox can avoid the negative publicity that comes with being in third place.
On the other hand, I think it's a bit of a shame that Xbox is no longer releasing console sales numbers. I'm always interested in seeing how well different consoles are selling, and I think it's helpful information for consumers to have when they're making a decision about which console to buy.
Overall, I think Xbox's decision to keep console sales numbers under wraps is a bit of a mixed bag. I can understand why they would want to do this, but I also think it's a bit of a shame that they're no longer releasing this information. Ultimately, I think it's up to each individual consumer to decide whether or not they think this decision is a good thing.
