MICROSOFT is one of the biggest companies in the world, making billions in profit every year, and with a net worth in the trillions.
Despite these massive profits that most companies can only dream of, it appears that it’s not passing on those profits to Xbox.
In an interview with Marketing Week, Xbox marketing lead Michael Flatt claims that Xbox has to get “scrappy” with the budget Microsoft allows.
Not only that, but Flatt claims that PlayStation far outspends Xbox in terms of marketing.
Flatt says: “From a funding point of view, we need to work really hard against our competition,”
“Regrettably they [PlayStation] outspend us [Xbox].
“They’re blessed with marketing funds that we’re just not able to enjoy.
“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.”
Microsoft recently purchased publisher Activision Blizzard for almost $70billion, meaning that it is willing to spend money on Xbox games.
On the other hand, Xbox has seen some of the biggest layoffs in the industry, including more than 2k Xbox employees and the closure of two major studios.
When it comes to marketing, Xbox appears to be far behind its much smaller competitor, PlayStation.
These comments from Flatt come after rumours that Xbox will stop marketing consoles in Europe.
The rumours, combined with Flatt’s remarks, make it seem as though Xbox has decided to focus its efforts – and marketing budget – on other aspects, such as games and Game Pass.
If you want to read more about Xbox, check out the highly-rated games leaving Game Pass.
Get the lowdown on more of the latest Xbox releases from our expert reviewers.
For PS5 and Nintendo Switch, check out our full game reviews section.
