Does This Spell Doom For Microsoft Corporation (MSFT)’s Xbox One?

Since the announcement of the Microsoft Corporation (NASDAQ:MSFT) Xbox One, the company has gone through quite a few ups and downs. We discussed one of its disasters here (and you may be surprised at what it is). When the game console finally hits the market in November, consumers are going to snap it up at a very high rate. Of course, this doesn’t necessarily mean that it will live up to expectations.

ABI Research recently took a closer look at where the game console market stands right now: New Consoles Coming, but Forecasts Fall Short of Previous Highs

As you can see, the name of this report pretty much says it all. Despite the fact that there are new consoles coming to the market in the near future, including the Microsoft Corporation (NASDAQ:MSFT) Xbox One, forecasts may not live up to previous highs.

Here is an excerpt from the piece, explaining what is going on in greater detail:

“Microsoft and Sony’s new game consoles will both ship in selected markets during the 2013 holiday season. The XBOX One and Sony PS4 appear evenly matched with content remaining as the primary means of differentiation. A number of new entrants to the fixed console market, such as Ouya, are ratcheting up the competitive field with pricing and gaming experiences intended to capture non-core gamers. ABI Research expects cumulative shipments of 8th generation consoles from the big three to pass 133 million during the first 5 years on market, compared to nearly 140 million 7th generation consoles over the same length of time.”

When compared to 7^th generation consoles, shipments for the latest batch are projected to come up short. Does this mean the Microsoft Corporation (NASDAQ:MSFT) Xbox One will struggle to meet expectations? Maybe, maybe not. It could be its primary competitors that come up short.

Senior analyst Michael Inouye added the following:

“With many of the casual gaming segment embracing mobile devices for gaming, without a shift in strategy and pricing the Wii U will likely fail to match the success of the Wii which will impact future console shipments. If China decides to lift its ban on consoles, however, in the short term this could boost future shipments of 7th generation game consoles while minimally altering the 8th generation.”

Even if the Microsoft Corporation (NASDAQ:MSFT) Xbox One does struggle, that quote goes a long way in showing that the console will not be alone in doing so.

What do you think about this? Do you agree with the report? Share your thoughts in the comment section below. This story about the Xbox One may surprise you as well (for a number of reasons).