Beleaguered Microsoft’s Xbox One is failing

“During Microsoft’s second quarter, the company sold a total of 1.1 million video game consoles, including both the Xbox 360 and the Xbox One,” Bargain Bin writes via Seeking Alpha. “This was only a 10% increase in unit sales year-over-year, a surprisingly small increase that was partly due to excess retail inventory.”

“But looking at unit sales over the past few months, Microsoft has bigger problems than excess inventory, with Sony’s PlayStation 4 and even Nintendo’s Wii U trouncing the Xbox One. The situation looks dire for Microsoft,” Bargain Bin writes. “Why is the Xbox One still selling so poorly? Part of the problem is that third-party titles simply perform better on the PlayStation 4. The recent hit Watch Dogs, for example, runs at a resolution of 900p on the PlayStation 4 at 30 frames per second, but is limited to 792p on the Xbox One. It may be difficult to tell the difference for most people, but this is the kind of thing that undecided gamers look at before buying a console.”

“CEO Satya Nadella recently laid out Microsoft’s [latest] strategy, classifying the company as ‘a productivity and platform company for the mobile-first and cloud-first world,’ and the Xbox doesn’t really fit in with this vision,” Bargain Bin writes. “Although Nadella defended the Xbox, Microsoft is an enterprise facing company first, and the Xbox appears to be more of a distraction for the company than anything else. The Xbox is neither mobile-first nor cloud-first, and it might make sense for Microsoft to spin-off the unit.”

Read more in the full article here.

MacDailyNews Take: Gee, that’s too bad. 🙂

Xbox One: Yet another stupidly-named, poorly-planned piece of mediocrity from beleaguered Microsoft.

Related articles:
Microsoft shortchanges 5 million Xbox One suckers – May 19, 2014
Disc Drive of Doom: Microsoft’s new Xbox One consoles suffer disc drive problems – November 25, 2013
Xbox One might not be the game changer Microsoft claims – May 23, 2013
Stumbling Microsoft unveils third Xbox, names it ‘Xbox One’ – May 21, 2013

39 Comments

  1. Xbox was the only thing MS had going too, and they blew it.

    Nintendo and Apple with Wii U and AppleTV (with iOS device) both offer an experience that MS and Sony have yet to capture.
    While Sony sees the light with the Vita and PS TV, Microsoft is just lost with Xbox.

  2. The Xbox One is a real mess for Microsoft. Those of us who have been watching the console category closely knew it was in trouble from the get-go. But months and months of ever more troubling evidence to the extent of Microsoft’s failure to launch the follow up to the 360 is more alarming than anyone who follows the industry could’ve predicted. The NA market is really the only market where MS still has any strength at all, yet recently we’ve seen Sony’s PS4 trouncing the Xbox One in sales even in months where a MS took extraordinary efforts to spur sales. The month Titanfall (a wildly-hyped and advertised new franchise published by EA with a console-exclusivity deal in place to be a “system-seller” for Xbox) PS4 still beat the Xbox. Following MS’s decision to sell a SKU without the Kinnect camera, (allowing MS to slash the retail price by $100) PS4 still outsold the MS product. And this is in the USA where the brand has the most momentum.

    In Europe, the story to Xbox is much, much worse. Recent sales data from Germany (second only to the UK in European game sales) shows the PS4 outselling the Xbox One by an astonishing 4:1 ratio in 2014. All momentum in Europe the Xbox brand had built with the 360 has stopped and actually reversed dramatically. It’s a complete disaster so far.

  3. The Xbox One is failing in the same way that the PS3 was failing during the last cycle — and the same doom&gloom articles are being printed (only the console names have changed). Microsoft has made some missteps but will have the time and opportunity to turn it around in the next few years (just like Sony did).

    The fact that the Xbox is underpowered compared to Playstation isn’t really that big of a deal. The 360 was underpowered compared to the PS3, and it did just fine by differentiating itself with games and services. It’s going to take Microsoft making a commitment to turning the ship around (and not ignoring it in favor of mobile, desktops and office) and they’ll do fine. There’s still room in the world for three home gaming systems.

  4. I’m going PS4 this generation but for truly unique gameplay and originality I still depend on Nintendo. Some of the most unique and fun gameplay I’ve experienced in years has been on the Wii U.

    1. Having played both, I can say that there really isn’t all that much difference in the day-to-day use of the systems. The graphics are statistically better on the PS4, but in real world use it’s hard to see much of a difference at all. They both have a majority of the same apps (hulu, netflix), they both charge for online play and now they cost the same price, too. So, it comes down to exclusive games. Does any exclusive franchise catch your eye?

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.