Microsoft recently made statements in a legal filing indicating that it believes “Xbox has lost the console wars”.
These remarks were presented as part of Microsoft’s defense in an ongoing trial with regulators in the United States.
The proposed $69 billion buyout of Activision Blizzard by Microsoft would be the largest acquisition in gaming industry.
Sony and regulators have consistently voiced concerns about the potential concentration of power in the gaming industry if the acquisition were to proceed.
Microsoft’s legal filing reveals that Xbox currently holds only 16% of console sales and a slightly higher share of the global console install base as of 2021.
The company admits that it has been the least successful console manufacturer in terms of sales for the majority of the past 22 years.
Microsoft even acknowledges that Sony’s gamer base in the US is currently larger than its own.
Microsoft’s legal argument in the ongoing trial suggests a recognition of the current state of the console market and the challenges Xbox faces in competing with Sony and Nintendo.