Microsoft Corporation (NASDAQ:MSFT) seems to be serious in its restructuring efforts. The firm is repositioning itself, there’s a new mission statement, rumors of layoffs abound and the firm seems to be divesting non-performing segments. The latest news in that shows Microsoft’s plan to hack out slow-moving segments is the striping of the Xbox branding and the kickoff of the ultimate game sale.
Stripping the Xbox Branding
Yesterday, Microsoft announced some new updates to its upcoming Windows 10 OS. However, does updates were nothing short of a subtle attempt to drop the Xbox brand. Xbox Music is now coming as Groove on Windows 10. Xbox Video will debut as Movies & TV On the news OS. Microsoft has been dropping the Xbox brand from its services for a while and it seems the Xbox brand has reached a point of no return.
Ultimate Game Sale
Microsoft’s Xbox ultimate Game Sale is kicking off today in a massive PR stunt that will see more than 70 titles going on sales with as much as 50% discounts. For instance, Far Cry 4, Dragon Age, Mortal Kombat X, and Ori will be going on sale at a 40-50% discount. The Orange Box, and Injustice: God’s Among Us will also be available at a discount. The pot gets sweeter because consumers with an existing Xbox Live Gold sub will get an additional 10% discount.
The gaming industry might focus on the fact that Microsoft is trying to reignite interest in its Xbox system with the discount sales. However, it appears more like Microsoft wants to put Xbox behind it and it would practically auction off its titles for what it could get.
The Xbox and Chronic Underperformance
The Xbox has largely underperformed in sales at least in relation to Sony’s PS4 and it isn’t strange that Microsoft is dropping the brand. Recent sales figure shows that PS4 has about 23.3M units lifetime sales in relation to Microsoft’s 12.8M unit lifetime sales. Nintendo’s Wii U console is also giving the Xbox a decent challenge with 9.7M units lifetime sales.
It doesn’t end there, monthly sales figures shows that the Xbox might never catch up with the PS4. The PS4 sold 617,578 consoles compared unit sales of 272,955 in the Xbox 1. Nintendo’s Wii is on Xbox’s heel with 141,426 unit monthly sales.
Microsoft will Eventually Sell Xbox
Microsoft’s dropping of the Xbox brand, its Ultimate Game Sale to push consoles and games off the shelves and the chronic underperformance of the Xbox one relative to the PS4 shows that the Xbox is already in the eye of the storm. It is doubtful that Microsoft will keep the segment along much longer. The market shouldn’t be surprised if rumors about the potential sales of the Xbox unit becomes a self-fulfilling prophecy.