Microsoft admits Xbox "lost the console wars"

Xbox Series X/S
(Image credit: Xbox)

Microsoft says Xbox "lost the console wars."

Today marks the beginning of the US's Federal Trade Commission versus Microsoft case, as the latter battled the regulator to approve its attempted acquisition of Activision Blizzard King. In the process, Microsoft is keen to show Xbox is in third place, thus making it look less dominant in acquiring the company.

As part of this strategy though, Microsoft admits that Xbox "lost the console wars." As reported by The Verge, Xbox states that in 2021 it had just 16% of total console sales, and that same year, it had just 21% of the total console install base. We don't know whether this is just in the US, or around the world.

Unfortunately, Xbox redacts the parts where they reveal what shares Nintendo and PlayStation controlled of the overall console market. You've got to imagine the Nintendo Switch was beating the PS5 in 2021, considering the latter's supply shortages at the time, but it'd still be interesting to know by how much.

It's very curious for Xbox to admit these figures out in public. The company obviously isn't afraid to make themselves look bad - and two years ago, at that - if it means securing their attempted acquisition of Activision Blizzard King.

It's also really, really funny. You can expect the console warriors will be out in full force over this comment, whether it's PlayStation fans going in on Xbox fans, or the latter trying to somehow refute Microsoft's new comments and somehow bend those stats into reading better than they actually are.

This is clearly what Microsoft thinks it's going to take to land them Activision Blizzard King, and the cost couldn't be higher.

Check out our upcoming Xbox Series X games guide for a look ahead at all the exclusives coming to Xbox's new-gen console over the coming year.

CATEGORIES
Hirun Cryer

Hirun Cryer is a freelance reporter and writer with Gamesradar+ based out of U.K. After earning a degree in American History specializing in journalism, cinema, literature, and history, he stepped into the games writing world, with a focus on shooters, indie games, and RPGs, and has since been the recipient of the MCV 30 Under 30 award for 2021. In his spare time he freelances with other outlets around the industry, practices Japanese, and enjoys contemporary manga and anime.

Read more
Halo: Combat Evolved splash art
Former Xbox boss admits the company once "encouraged" the console wars, which he believes "were healthy for the industry" as "a rising tide that lifted all ships"
Xbox Series X and Xbox Series S
Despite "a rocky couple of years," analyst reckons Xbox's console war is "actually looking pretty bright" - "If you look at the PlayStation sales chart, you see a lot of Microsoft on there"
Indiana Jones and The Great Circle - Indiana peers out from the shadows in stealth
Xbox bringing its exclusives to PS5 has a precedent set by Sega, but "it makes the conversation harder to create the FOMO," says former PlayStation boss
As Switch 2 approaches, original Xbox designer says console power doesn't matter anymore because content is king, and he "would not have done things the same way" Microsoft has
Pal wields a massive turret in a screenshot from Palworld
Palworld dev refuses to be baited into Helldivers 2 comparison: "I don't like you. Console war baiting in 2025 is beyond stupid"
Original Xbox console
Former Microsoft exec says the first Xbox was killed early in favor of 360 because it was "losing money left right and center," but luckily "we could afford to hemorrhage cash"
Latest in Xbox
Dune Awakening
Dune Awakening launches for $50 without a stay in early access, and while the survival MMO "will not have a monthly subscription" it will have "optional" paid DLC
Assassin's Creed Shadows screenshot showing female protagonist Naoe
Assassin's Creed Shadows Naoe actor was terrified to perform until her first mocap scene earned "a standing ovation" on set: "Maybe I can do this mocap thing"
Assassin's Creed Shadows cinematic screenshot
Assassin’s Creed Shadows Yasuke actor says that Naoe could beat his samurai in a fight: “Especially with that big a** helmet of mine”
Fallout 76 screenshot showing an irradiated mutant man-like creature screeching, its sharp canine teeth showing
After 14 years at Bethesda, Skyrim and Fallout veteran made his final settlement in just 2 days – but only because he'd made some rough ones before that
Asssassin's Creed Shadows kusarigama
My favorite weapon in Assassin's Creed Shadows is also the most misunderstood
Imai Sokyu leads the tea ceremony in Assassin's Creed Shadows
Assassin's Creed Shadows' tea ceremony quest is one of the game's best moments, but I wish Ubisoft would give us even higher stakes
Latest in News
Dune Awakening
Dune Awakening launches for $50 without a stay in early access, and while the survival MMO "will not have a monthly subscription" it will have "optional" paid DLC
Linda Cardellini as Laura Barton in Hawkeye
Linda Cardellini cast as Jason's mom, the original Friday the 13th killer, for Crystal Lake prequel series
Cyberpunk: Edgerunners
Witcher 3 and Cyberpunk 2077 studio CD Projekt Red won't make survival games just because they're popular, but Netflix's Edgerunners anime is fueling dreams bigger than RPGs
Assassin's Creed Shadows screenshot showing female protagonist Naoe
Assassin's Creed Shadows Naoe actor was terrified to perform until her first mocap scene earned "a standing ovation" on set: "Maybe I can do this mocap thing"
Daredevil: Born Again
Marvel may have just sneakily confirmed one of the biggest Daredevil: Born Again fan theories
Assassin's Creed Shadows cinematic screenshot
Assassin’s Creed Shadows Yasuke actor says that Naoe could beat his samurai in a fight: “Especially with that big a** helmet of mine”