Xbox Series S has been the most successful console last Black Friday in the United States. Some data that has surprised part of consumers, for whom the battle of the new generation of consoles should take place between Xbox Series X and PS5, occupying their digital counterparts in the background. But the truth is that, from the beginning, Xbox Series S was conceived as the console called to sweep sales and Xbox Series X the one destined to occupy a more select (and minority) market share of users. Although Phil Spencer has repeated this idea on numerous occasions, many believe that the success of Xbox Series S is due to the production problems that Xbox Series X and PS5 are experiencing regarding their components. But what is true in that? Is Xbox Series S sweeping only because of the low supply of its competitors or is there something else?
Does Xbox Series S devastate Xbox Series X and PS5 due to lack of stock?
Although many believe that the rebound in sales of Xbox Series S is all about the Xbox Series X and PS5 shortage in the market, this is not entirely true; at least, as of today, a year and a half after the closure and global market paralysis. It is true that the shortage of technology-related products, especially chips and semiconductors from China, is affecting the supply of Xbox Series X and PS5, but the Xbox Series S Takeoff it is not solely due to this.
It is true that the supply problem exists. Even Phil Spencer himself commented to the medium The Wrap that the lack of chips and semiconductors would be a problem for the Xbox Series X | S production and sourcing. But referring to the two consoles as a whole, pointing out that even this problem would last until 2022. On the other hand, Hiroki Totoki, President and CEO of Sony Mobile Communications, assured in August 2021 that Sony had enough chips to comply with the PS5 production goals, as we can read in the middle Gadgets. So, apparently, the production of PS5 is covered and there would be no stock issues to consider, in Totoki’s own words.
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Nor can we forget Nintendo, a company that has recognized the production problems that it may have Nintendo Siwtch for this fiscal year. But this has not prevented Nintendo Switch from reaching a crushing figure of 89.7 million units sold, compared to 12.8 million for the PS5 family and 6.7 million sales for Xbox Series X | S, according to the portal’s estimates. Ampere Analytics. Due to these problems, it will be forced to produce “only” 24 million units of Nintendo Switch until the end of the following fiscal year, in March 2022. Which far exceeds the sales figure of PS5 and Xbox Series SX | S together. Finally, do not forget that the PC market has grown by 13% in this second quarter of fiscal year 2021, with Lenovo, HP and Dell in the lead; three of the companies that manufacture the most in China and that present higher production figure in the PC manufacturing market in that country.
As we can see, although the shortage of production of certain elements is affecting the console market, it is not doing so in such a decisive way in the consumer’s opinion. And it is clear that if the public opts for Xbox Series S it is for something else.
In Summary:
– Xbox Series X | S sell in is now over 8m (Estimate)
– Xbox Game Pass subscriptions are over 20m (Estimate)
– Series X | S hardware still supply constrained overall
– Content & Services is the long term driver of growth + will grow this holiday thanks to Halo.– Daniel Ahmad (@ZhugeEX) October 27, 2021
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“I think that throughout the generation, the price will become something that really matters and that is why you will see that Xbox Series S sells more.” Interview of Kotaku to Phil Spencer on October 16, 2020.
More than the limited supply of Xbox Series X and PS5, it is possible that the sales success of Xbox Series S is due to an outright economic decision: the consumer prefers the most profitable option over the most expensive, taking into account that the benefits are quite similar. Yes, it is true that Xbox Series X and PS5 are much more powerful and have more “manyiflops” than Xbox Series S. But that, to the real market, to the Fortnite market and the post-Covid-19 economic crisis, it matters little and nothing.
Right now, the majority public demands low-cost services and that is the great asset that Microsoft offers with Xbox Series S: a good, digital console (something in tune with the mobile or children’s or youth audience, fully digitized) and with Xbox Game Pass, which is undoubtedly the great service of the generation. As we can observe, the majority demographics of the console market in the United States encompass consumers under the age of 18 and between the ages of 18 and 34. That is, a sector of the population marked by its low purchasing power that, however, has more free time to devote to video games.
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Microsoft, how stupid it is, has fully realized the importance, as a public, that the «Generation Fortnite». And it has tried, through Xbox Series S, to meet the basic needs of the majority percentage of players, those who simply want a simple, affordable console that allows them to play whatever they prefer (which is most likely Fortnite, Halo Infinite or some other). another free-to-play) through a good multiplayer with which to share experiences with friends. Phil Spencer hasn’t been saying for long that Xbox Series S will be the big seller Microsoft because yes, but because you really believe it. Just as he has not stopped repeating that Microsoft’s goal is to reach the potential 3,000 million players around the world, which has been fully demonstrated thanks to the latest movements of xCloud, Backward Compatibility, and Xbox Game Pass.
And you, what do you think? Do you think Xbox Series S is being a success due to the limited supply of its competitors or because it will be the “dark horse” of the new generation of consoles?