Microsoft’s main problem, according to a recent report from DFC Intelligence, is that consumers won’t be interested in the Xbox Series S, even if it sells for a fairly attractive price. “Microsoft has positioned the Xbox Series X as the most powerful system ever, and suddenly what appears to be a stripped-down version at a lower price appears,” the firm wrote.

The Xbox Series S will debut on November 10 this year. Consumers will be presented with two options for the next generation console from Microsoft: a full-fledged powerful Xbox Series X, the price of which is still unknown, and a budget Xbox Series S for € 299. DFC Intelligence believes the launch of the second Xbox confirms Microsoft’s long-term digital strategy. And that will give Sony Interactive Entertainment and the PlayStation 5 a big advantage in the console race in terms of device sales.

The analyst firm also expects the next-generation consoles from Sony Interactive Entertainment and Microsoft to be initially available in limited quantities due to higher prices for their components. “Any equipment that can be delivered in 2020 will be sold out. Console systems are likely to be in short supply and Microsoft will be able to produce more Xbox Series S devices. In theory, this could give the Xbox a larger initial install base, DFC Intelligence added. ”  Unfortunately, everything else is clearly in favor of the PlayStation 5. Microsoft has lost control of media reporting and it looks like the PS5 will be the system for those looking to play exciting new games. “

Finally, according to DFC Intelligence, the Xbox brand is focused on the digital future of classic franchises distributed through the Xbox Game Pass and the cloud. This can be a reliable long-term strategy, but it will be bad for the sales of a new gaming system in the short term. “The current Xbox One platform is great for Microsoft’s digital strategy,” the analyst firm wrote in the report.