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Xbox CEO says console demand is outstripping supply—but sales continue to drop

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Xbox CEO says console demand is outstripping supply—but sales continue to drop

Xbox CEO Asha Sharma insists that the demand for Xbox consoles is there, Microsoft simple cannot produce enough, a claim that may clash with Xbox's public sales data.

At Microsoft's investor call last night, Xbox CEO Asha Sharma spoke about the unit sales of the Xbox, stating that console demand is higher than supply and indicating that players want to buy Xbox units but they are simply not finding any available, later resharing her comments on X (formerly Twitter). But that claim may clash with Microsoft's own financial results.

Sharma's claim is that, for the quarter being reported in these recent financial results, the lower sales of the Xbox compared to previous sales performance, is because they are unable to manufacture or supply enough console units, while also pointing out that the overall decline has lessened between quarters when compared to the previous year.

Beyond Sharma's initial statement, which focuses on revenue, the financial results report that Xbox hardware revenue has fallen 14 percent year over year this quarter, despite the price going up. For demand to be outstripping supply, the hardware revenue should be seeing big gains, not the relatively modest ones shown by the publicly available numbers.

While local stock is always going to vary depending on a number of factors, cursory checks on supply both locally and nationwide does not indicate that Xbox Series X or Series S are particularly difficult to find in retail environments at present, so it is unclear what Sharma means about demand outstripping supply.


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