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Microsoft embraces third-place status in console wars

But hold on a moment! Microsoft isn’t giving up entirely – they have some major plans in store.

Xbox one x close up
Image: Pexels

Well, folks, it’s happened. In a twist that no one saw coming (or did we?), Microsoft has finally admitted what we’ve all suspected for years – they’re losing the console wars to Nintendo and Sony.

This startling confession came amidst their ongoing legal tussle with the Federal Trade Commission (FTC) over their audacious $69 billion bid to acquire Activision Blizzard.

In a court document submitted on June 22nd, Microsoft essentially said, “we give up” in their battle against Nintendo and Sony.

This news took me by surprise, and maybe you feel the same. I’ve always seen Sony as a strong competitor, but it’s easy to overlook Nintendo’s influence. They’re like a sleeping giant, ready to make their move.

Microsoft reminisced about how ever since they launched their first Xbox back in 2001 (which looked more like an ogre than a gaming console), they’ve been trailing behind GameCube and PlayStation 2 sales.

According to VGChartz’s data, Xbox only managed to snag a measly 16% market share last year, while Nintendo and Sony lounged comfortably at the top.

Even with new releases like Xbox Series X and Series S selling just 21 million units compared to PlayStation 5’s/Nintendo Switch’s insane figure of 36 million units sold – it leaves us wondering what’s next.

From console loser to content dreamer: the new vision for Xbox

Xbox one game controller.
Image: Unsplash

But don’t start playing Taps just yet! Microsoft isn’t throwing in ALL towels – they’ve got plans. Like, really big plans.

They’re reportedly building something similar to Netflix but for video games. As per Microsoft: “Xbox generates profits through game sales, not console sales.

Their aim is simple: make money from selling games rather than consoles because let’s face it – that ship has sailed.

The messy road ahead

Xbox one controller in hand
Image: Unsplash

While we digest this surprising news about Microsoft waving goodbye to console wars, there are still some legal issues brewing between them and FTC regarding their attempt at buying Activision Blizzard.

Sony’s PlayStation boss Jim Ryan warned that if this deal goes through, then information about future projects like ‘PlayStation 6’ might be kept away from Call of Duty developers.

This could affect cross-platform gaming, especially for die-hard Call of Duty fans who love playing on PlayStation platform.

The future seems exciting yet uncertain until everything settles down between these corporate giants. Just remember, these are all companies that are making a ton of money either way, even with a bonafide lackluster product.

Have any thoughts on this? Drop us a line below in the comments, or carry the discussion to our Twitter or Facebook.

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Kevin is KnowTechie's founder and executive editor. With over 15 years of blogging experience in the tech industry, Kevin has transformed what was once a passion project into a full-blown tech news publication. Shoot him an email at or find him on Mastodon or Post.

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