Microsoft sacrificed Xbox Series X sales for ‘long term ambition’ in the cloud

An Xbox Series X console is placed on a white surface with a black background behind it.
Photo by Vjeran Pavic / The Verge

Microsoft has been sacrificing growing its Xbox Series X / S sales numbers since launch as a tradeoff for investment in cloud and gaming content. In an internal email exchange between Xbox chief Phil Spencer and Xbox CFO Tim Stuart in December 2020, the pair discussed the reasons behind lower Xbox console volumes. The email has been revealed as part of the FTC v. Microsoft hearing.

Spencer admits that Microsoft had a “yield miss for Scarlett,” the codename for Xbox Series X / S consoles, but that it and the delay to Halo Infinite weren’t the “main factors in our console scarcity” during the initial launch period. Microsoft had cut the compute units on its Xbox Series X silicon down to 52 from 56 to improve production yield, but the…

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Posted by Experimentor