During the 2000’s and early 2010s Microsoft Xbox was a dominating force in the gaming industry. The original Xbox and the Xbox 360 proved that Xbox can compete with the likes of Nintendo and PlayStation to make entertaining games that everyone can enjoy. However, for the past couple of years Xbox sales have seen a steady decline in sale due to questionable decisions made by Microsoft. Lets dive deeper on why that is the case.
Layoffs, Price Hikes and Studio Closures
In my previous article, I stated that Microsoft layoff several workers. Just last September, Microsoft laid off 1900 workers, which is 9% of it’s gaming division and slashed 650 jobs. These layoff effected multiple games that were in development some that were in development for more than seven years including titles like “Perfect Dark” and “Everwild” Even though Microsoft has acquired several studios, they have also shutdown several others cancelling games under the gaming publisher Bethesda like “RedFall” and “Mighty Doom” develop by Alpha Dog Games.
As of last year Microsoft, Nintendo and Sony have all increase the prices of their consoles. Here’s a list according to CNBC of the price jumps that each version of the Xbox Series S and X had over the months:
| Model | Original Price | May Increase | September Increase |
| Series S 1TB | $349.99 | $429.99 | $499.99 |
| Series S 512 | $299.99 | $379.99 | $399.99 |
| Series X | $499.99 | $599.99 | $649.99 |
| Series X 2TB | $599.99 | $729.99 | $799.99 |
| Series X Digital | $499.99 | $549.99 | $599.99 |
As you can see within only a month the prices for all versions of the Xbox Series X and S jump significantly. Causing consumers to hold off on buying the console.
Also, Microsoft Xbox Series S and X only sold 1.7 million units, which is far behind from the Original Switch, Switch 2 and PS5. Nintendo Switch 2 has sold 10.36 million units and the PS5 sold 9.2 million units.
Moving in a Different Direction
Throughout the years Microsoft has express moving in different direction than its competitors. According to the company CEO Satya Nadella, the gaming business model will look to be “Everywhere in every platform” from consoles to TV to mobile. This hints that the next Xbox console might be similar to the Xbox new handheld called the ROG Xbox Ally, which is a built in partnership with ASUS.
Microsoft also express interest in cloud base gaming having according to CNBC 34 million subscribers in 2024 pointing to five billion dollar in revenue. The Xbox uses a game pass that has different tiers. The Game Pass Essential tier is $9.99 that offers up to 50 titles as the Ulimate tier allows the consumer to have access up to 500 titles in the Xbox gaming library. Although the Ulimate tier has risen in price from $19.99 to $29.99, gamers are still eager to purchase these options on Xbox.
Microsoft does not care about exclusives anymore as Halo: Campaign Evolved and four other exclusive titles will be release on the PlayStation 5. This is a huge shift from what the company were like before.
With that being said, Microsoft doesn’t see itself as a competitor anymore as it’ll focus more on A.I and cloud base gaming to reach a wider audience. But what do you think?
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