“Console sales remain constrained by supply, with more demand than consoles available. We’re working to get more consoles into players’ hands, including through our expanded refurbishment program,” Sharma stated.
The console market has been strained by increased prices due to a shortage of components, exacerbated by the demand from AI companies like OpenAI and Google. This shortage comes at a challenging time for both Microsoft and Sony, with the launch of Grand Theft Auto 6 expected to drive significant interest in gaming consoles.
Microsoft’s outlook for Q2 is conservative, despite the anticipated impact of GTA 6 and Modern Warfare 4. The company expects moderate growth in Xbox content and services, predicting mid to high-single-digit increases. Hardware revenue is projected to decline year-over-year, with the most substantial growth expected in Q2, followed by a slowdown in Q3 and Q4.
Sharma noted, “With content launch patterns through the year, we expect growth to be strongest in the second quarter, with some deceleration in Q3 and further moderation in Q4.”
In an effort to boost console availability, Xbox has been reaching out to customers who have not recently used their Series X and S consoles, offering trade-in opportunities. This initiative is part of a broader strategy to manage supply issues and meet the high consumer demand.
Article Source: www.ign.com
