Are you still having a hard time getting an Xbox Series X|S? If you are, you’re not alone, and Microsoft knows about it! The Xbox Series of consoles are so highly in demand that they have sold more than any previous Xbox console according to Xbox boss Phil Spencer.
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In a recent interview with the New York Times (paid subscription to access), Spencer talked about the supply issues the next-gen console is suffering through, and mentions that the issue isn’t really supply, but rather that demand is exceeding this supply.
Supply is actually as big as it’s ever been. It’s that demand is exceeding the supply for all of us. At this point, we’ve sold more of this generation of Xboxes, which is Xbox Series X and S, than we had any previous version of Xboxes. So it’s our job to get the supply there to meet that demand.
Given how popular the Xbox Game Pass has been, some might be wondering whether this subscription-based revenue model would overtake the traditional standalone game when it comes to revenue. Well, apparently, it hasn’t. This was confirmed by Spencer in the same interview.
Transaction is bigger than subscription. Subscription is growing faster, just because it’s relatively new. And with Game Pass, we were one of the first movers in that space. But the transaction business is very large. We still sell physical disks.
Even if supply is the issue with the Xbox Series, there’s still an on-going global chip shortage and the pandemic, which I gather adds to the supply and demand issue as well. Hopefully that’s sorted out soon, so anyone who wants an Xbox Series X|S will be able to snag one.
One thought on “Phil Spencer: Xbox Series Sold More Than Any Previous Xbox, Says Transaction Still Bigger Than Subscriptions”
Hmm, did not know that. This era of gaming is going to be vastly different than the rest!
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