Amidst Activision Acquisition Deal, Microsoft Raises White Flag on Xbox’s Stance in “Console Wars”

Microsoft’s acquisition of Activision Blizzard doesn’t seem to be the smoothest merger as many would want it to be. In the latest event from the ongoing drama, the Xbox makers seem to accept their fate within the console industry. With PlayStation manufacturer Sony trying everything it can to stop the acquisition, Microsoft claims to have been constantly dominated by its rivals. Since entering the console industry in 2001, Microsoft has always shown up below Sony and Nintendo in the third position. As further investigations into the Microsoft-Activision $68.7 billion deal are launched by the FTC, Microsoft says they’ve “lost the console wars“.

With the gaming community keeping a keen eye on the merger proceedings, here’s how the console maker is looking to plead for the upcoming Federal Trade Commission trials.

“Console wars” raging on for over two decades

Sony and Nintendo have been in the gaming industry long before Microsoft made plans for doing so. Since 2001, Microsoft has always sold lesser units than the other two players in the industry. Fans dubbed the competition between the three biggest console manufacturers the “console wars” that have now been going on for over 22 years. Throughout all this time, Microsoft has always been positioned at third, behind both Sony and Nintendo.

Microsoft further revealed that in 2021, the Xbox enjoyed a 16% market share, which was lower compared to the performances of Sony and Nintendo in the same year. Along with this number, Xbox only managed to grab a mere 21% share of the market for “installed base”. On the other hand, the five generations of the Sony PlayStation have seen incredible success in the industry. Sony’s user base only in the United States is as large as Xbox’s worldwide user numbers. So it’s not surprising that the numbers of Sony and Microsoft when considering only the US market, are highly diversified.

Read more “Unlike Sony, Our Most Senior Executives Will Testify” – All Eyes On The $69 Billion Deal As CEO Satya Nadella and Xbox Execs Gear Up To Defend Against FTC Case.

Microsoft may be finally raising a white flag

The three major console makers have always been in a fierce fight over dominance in the industry. Since the details of the Microsoft-Activision deal were made public, however, Sony has alleged multiple times that the move may cause PlayStation sales to plummet. Sony further claimed that if Microsoft takes over Activision, they may restrict PlayStation access to popular titles like Call of Duty or Overwatch. As a counter to this argument, authorities at Microsoft highlighted that Sony has enough intellectual properties in its arsenal. With the grand success of The Last of Us live adaptation, Sony’s claims were only motivated by fear, Microsoft maintained.

Now, as FTC put a restraining order on possibly the largest acquisition deal in the history of the gaming industry, Microsoft looks like they don’t have the fuel to keep going.

The case is slotted for further hearing on June 23, and the community is eager to know what transpires for Microsoft, as it admits to losing out to its competitors.

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