Recent reports claim that Xbox will rethink its console business in some regions. Specifically, it is said that the brand would gradually stop promoting its systems in Europe, the Middle East, and Africa (EMEA region). Likewise, it is said that it would send less console stock to various countries in Europe.
All this with the aim of focusing on PC, Xbox Game Pass, and promoting its peripherals. Although the company has not confirmed this change in strategy, a member of the company for the EMEA region acknowledged that the marketing budgets are not as expected, especially when compared to what Sony has for PlayStation in these parts of the world.
Xbox member laments the lack of high marketing budgets
Xbox's marketing has generated controversies on several occasions, as fans believe that certain important releases do not have adequate promotion. Michael Flatt, head of Xbox EMEA marketing, acknowledged that the outlook is challenging and that they have struggled to stand out against PlayStation, their main competitor.
He pointed out that, despite the lack of high marketing budgets, they have found a way to fight for funds to have a presence in storefronts and media with their most important products. Despite this, Flatt made it clear that PlayStation "outspends" them in this area.
"From a funding point of view, we need to work really hard against our competition. They’re blessed [PlayStation] with marketing funds that we’re just not able to enjoy. But that’s totally fine. We adopt what I would call a more fiscally responsible approach to media investments.
"We’re not blessed with huge media budgets, so we have to be quite scrappy really, and quite tenacious to fight for funds that would probably go somewhere else," the executive commented.
It is important to mention that Flatt did not speak about the recent report regarding Xbox's change in strategy for its console business in Europe, the Middle East, and Africa, so we will have to keep waiting for Microsoft to clarify this situation.
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