- Microsoft reportedly dialed down the marketing of consoles in regions like Europe, the Middle East, and Asia.
- The head of marketing in these regions suggests Microsoft’s lack of marketing funds for these regions led to this decision.
- He also admitted that PlayStation enjoys a much bigger marketing budget in these parts of the world.
Xbox has constantly struggled to measure up to Sony’s PS5 this generation. In terms of market share, the PS5 has a clear lead, and this lead is much bigger in parts of the world, like Europe.
Despite low sales of Xbox consoles in these regions, the company is reportedly cutting down marketing in Europe, Asia, and the Middle East. Explaining the situation, Xbox’s head of EMEA marketing has confirmed that Microosft offers limited funding when it comes to marketing in these parts of the world.
Why it matters: Marketing is one of the key components of any console hardware’s success. However, it also requires a major investment, so companies spend millions of dollars on extensive marketing campaigns.
Xbox has always struggled to sell well in many regions, particularly in Europe. According to Michael Flatt, Xbox has to face stiff competition from PlayStation here.
He says that PlayStation is blessed with big marketing budgets for marketing from Sony, and this is something Microsoft does not do for Xbox. Michael Flatt describes the situation as being scrappy and fighting for funds.
We’re not blessed with huge media budgets, so we have to be quite scrappy to fight for funds that would probably go somewhere else.
-Michael Flatt
While Flatt did not address the recent reports, his statement makes them more believable. With such limited marketing budgets, perhaps Xbox decided to cut down marketing efforts in these regions altogether.
Xbox has recently driven home the point that a console is no longer needed to play Xbox. This has been done through two separate Amazon advertisements, further highlighting Microsoft’s dwindling focus on consoles.
Moving forward, Xbox might find its position in EMEA regions growing weaker and weaker. Currently, the gaming giant performs best in the US, while other regions like Japan have shown slight promise compared to the last generation.
However, it seems a bit odd to see the gaming giant ignoring a market as big as Europe, even if PlayStation is known to dominate this region.
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