Microsoft’s Shift in Focus from Console Sales to Content and Services
Microsoft CFO Tim Stuart has explained why the PlayStation vs. Xbox console sales competition isn’t a priority for the company anymore. Microsoft has long acknowledged that it lags behind in hardware sales but has shifted its focus to other indicators of success for the Xbox brand.
Speaking at the recent Wells Fargo 2023 TMT Summit (via GameSpot), Stuart emphasized that hardware sales no longer accurately represent the overall performance of the Xbox brand. Microsoft has stopped disclosing console sales figures, distinguishing itself from Sony and Nintendo, both of which continue to report their hardware sales figures.
Stuart reflected on the initial skepticism surrounding Xbox’s decision to halt the announcement of hardware sales, recalling conversations that questioned the rationale behind the choice. He explained, “At first, it was like, ‘What are you doing?’ ‘You’re the Xbox business, and you’re not giving us console [sales numbers], that makes no sense.’ But it was really the first point of us saying, no, no, it’s about content and services.”
Microsoft has consistently emphasized the significance of content and services in recent years, particularly during legal battles regarding its acquisition of Activision Blizzard. The company has underscored the growth of Game Pass as critical to Xbox’s future, underscoring its emphasis on acquiring content.