The Xbox Series S Is Helping Microsoft Win Europe

In the console race, it looks like Microsoft is starting to win out in one significant territory. According to sales data reported by GamesIndustry, Microsoft's new-gen consoles have beaten the PS5 in sales for the first time ever in Europe last month, although Nintendo's Switch is still beating them both.

The figures show that over the entire month of February, the combined amount for Xbox Series consoles outsold the PS5 (although it's worth pointing out that the UK and Germany, which are big markets, are not included in the data). While demand for the PS5 remains very high, Sony continues to have problems producing enough of the consoles to satisfy this demand. Meanwhile, the Xbox Series X is also continuously in low stock, but Microsoft's strategy of having a cheaper, less powerful, and easier to build new-gen console in the form of the Xbox Series S appears to be paying off.

As industry analyst Daniel Ahmad pointed out, Microsoft's decision to have two entry points into the new-gen paid off in the US market too, recently, and why the dual console strategy has been successful so far, and it's partially to do with the pandemic-related components shortages, but there's more going on than that. "Series X and PS5 are heavily supply constrained, while Xbox can churn out more Series S consoles globally", he said, on Twitter.

"Series X is similar to PS5 in that it's harder to produce, supply constrained + some are being used for xcloud", he continued, pointing out that Microsoft "can produce more Series S consoles with less resources".

With the Xbox Series S having a significantly lower price point than the PS5 or its Xbox sibling, combined with the value proposition of Game Pass, the Series S has clearly been attractive to consumers. Sony meanwhile has been losing customers simply because the PS5 has been harder to find, either in game stores or online, as stock issues have becoming an ongoing challenge.

Numerous analysts have pointed out the benefits of Xbox's dual console strategy, and not just in Europe, but in the traditionally difficult market – for Microsoft – of Japan. However, the powerful Sony and Microsoft new-gen machines are still being outsold by the Nintendo Switch, which was the best-selling console for February 2022 by a comfortable margin.

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