Every fiscal quarter end, a mystery surrounds the console sales segment. A Sony and the Nintendogenerally disclose sales data, but competitor Microsoft adopts a different policy: data on Xbox performance is kept secret by the company.
When asked about the reason for this decision, the company’s financial director Microsoft, one of the largest technology companies in the world, explained that this policy reflects the company’s strategy. He spoke about the topic during the Wells Fargo 2023 TMT Summit.
According to Tim Stuart, there was initial resistance from executives in accepting the idea of keeping the data secret, but everyone later understood that it would be important to consider this approach, as it was the right thing to do.
Xbox: why doesn’t Microsoft release sales data?
Xbox consoles. – Image: Microsoft/Reproduction
Phil Spencer, CEO of Microsoft Gaming, was also present at the time and gave more details about the case.
He explained that console sales are not necessarily indicative of the health of the company’s gaming ecosystem, as there are other products, such as PCs with a Windows system, for example.
“At first it was like, ‘What are you doing?’ You represent the brand Xbox and it’s not giving us console sales figures, that doesn’t make sense’. But, in fact, it was the first step towards saying: no, it’s about the content and services”, added Tim Stuart.
Microsoft’s big project is to invest and expand its audience in other areas. PCs, for example, are seen as the main target for game delivery.
Furthermore, the mobile segment has been growing and gaining importance within the company.
Focus or shame?
Another aspect that needs to be highlighted is that Microsoft’s strategy varies depending on the reality of some regional markets. In certain cases, the company aims to stand out more through services, such as Xbox Game Pass.
In general, the strategy is to strengthen the ecosystem as a whole and not individualize performance, focusing only on pure console sales metrics.
Despite this, it is worth remembering that Microsoft has already stated that the PlayStation holds 70% of the global console market.
This data leads to the thought that it would not be good for the Xbox brand and for the company to disclose information that is very different from that of the main competitor.
Some specialized companies carried out market analyzes and pointed out that the PS5, for example, sold 20 million more units than the Xbox Series X|S worldwide.
Therefore, the real reason for the secrecy may be slightly different from what has been claimed.
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