“Xbox Has Lost the Console Wars” Admits Microsoft, Next-Gen Consoles Expected in 2028

As part of their efforts to get their proposed $69 billion acquisition of Activision Blizzard approved by regulators, Microsoft faces off with the U.S. Federal Trade Commission in court today. The FTC wants to impose an injunction that would prevent Microsoft and Activision from closing the deal before a more crucial trial in August that would determine if the FTC has an antitrust case.

While the actual arguments should be interesting, legal documents have already offered some fascinating information, with Microsoft saying they plan to bring future Bethesda titles to PlayStation consoles. Meanwhile, PlayStation’s Jim Ryan has said they won’t share information about the PS6 with Activision if they end up being purchased by Microsoft.

Digging deeper into the court filings, Microsoft has outright admitted “Xbox has lost the console wars,” saying they’ve “consistently ranked third behind Sony and Nintendo.” According to Microsoft, they had a 16 percent share of total console sales in 2021 (sadly, Sony and Nintendo’s share of the pie is redacted). Looking at the total console install base, Xbox sits at 21 percent. Of course, install base doesn’t tell the entire story – when things like PC game sales and Game Pass are taken into account, Xbox’s revenue is similar to Nintendo’s (but they still trail behind Sony).

Speaking of consoles, documents also reveal Microsoft’s proposed 10-year Call of Duty deal would see new entries in the series on the PlayStation 6, as Microsoft expects the next generation of consoles to kick off sometime in 2028.

“This term would in any case go beyond the expected starting period of the next generation of consoles (in 2028). Thus, Call of Duty will be published on successor PlayStation consoles should one be released during the term of the agreement. The agreement also would ensure that Call of Duty console games are offered on PlayStation at parity with Xbox.”

I’m sure even more juicy details will come out of Microsoft and the FTC’s legal wrangling, and we here at Wccftech will keep you updated on the latest. You can get more info on all the drama surrounding the Activision Blizzard acquisition here.