Microsoft states ‘we have actually lost the console wars’ as FTC hearing gets underway

In an impending legal battle with the United States antitrust organisation the Federal Trade Commission, Microsoft admits it has “lost the console wars” in a court document.

The FTC is attempting to block the Xbox maker’s $69 billion USD Activision Blizzard acquisition with an injunction, therefore the company is currently in court defending the deal.

Microsoft has tried, once again, to portray itself as the underdog in the console business in a (heavily redacted) court brief intended to complement the five-day case.

Nintendo confirms on air that the Switch will continue to be supported.

Microsoft stated in their statement (with a nod to The Verge) that the Xbox 360 consistently ranked third in sales, behind the PS3 and Wii U. Even while the Xbox “tracks” with 21% of console income and shares of consoles already in use by players, the company only has a 16% market share.

According to Microsoft, “Xbox has actually lost the console wars,” and its competitors are positioned to continue to control, including through exploiting special material. In terms of console sales, Xbox has consistently behind only Sony and Nintendo.

Microsoft has used the underdog narrative before in its battles with regulators around the world, including in talks with the European Union (EU), which approved the Activision Blizzard handle in May, and the United Kingdom’s Competition and Markets Authority (CMA), which did not.

Microsoft has scheduled a July hearing with the UK’s Competition Appeal Tribunal to appeal the CMA’s unexpected decision. An internal FTC hearing on the transaction isn’t scheduled to take place until August 2nd; the injunction is intended to prevent Microsoft from closing the offer before then. However, Microsoft has signalled that it may withdraw from the acquisition if the injunction is granted.