- This decision to stop Xbox sales in Saudi Arabia is likely due to struggles in meeting revenue expectations.
- Microsoft has not responded to inquiries about the decision.
- Xbox has faced challenges in the Middle Eastern gaming market compared to competitors like PlayStation.
Microsoft is said to be stopping Xbox sales in Saudi Arabia. A Saudi journalist, MAlbsimi, reported that the company has officially told major stores in the area that they can no longer sell Xbox consoles.
This decision will also affect distributors, as there will be no new stock of Xbox devices for the region.
Why it matters: According to previous reports, Xbox has struggled to meet revenue expectations after the Activision buyout and is currently in a mess. That might be why the company is stopping console sales in Saudi Arabia to reduce its losses.
MAlbsimi mentioned that he contacted Microsoft for a comment weeks ago, but the company didn’t respond, which makes the claim seem more believable. He believes that if the rumor weren’t true, Microsoft would have denied it right away.
This news comes after earlier reports that Microsoft is cutting back its operations in the EMEA region. Tom Warren reported in July that Microsoft was reducing its marketing for Xbox consoles in EMEA, shifting its focus to services like Xbox Game Pass and cloud gaming.
It looks like the situation in Saudi Arabia is part of this larger development.
Microsoft hasn’t been as strong in the Middle Eastern gaming market compared to competitors like PlayStation and Nintendo. Xbox is reportedly struggling in areas where PlayStation has a large share.
This might explain why the company decided to stop hardware sales in Saudi Arabia and focus on its growing digital services instead. However, this could widen the gap between Xbox and PlayStation in the region even more.
As Microsoft stays silent, the lack of Xbox consoles in Saudi Arabia could boost PlayStation’s dominance in the market. This is especially after the criticism Xbox received for the Series S’s performance.
Despite MAlbsimi’s sources in the region being generally reliable, it’s important to take these rumors with a grain of salt.
What do you think of this development? Do you think it’s a good idea to halt Xbox production in the Middle East? Let us know in the comment section below or join the discussion on Tech4Gamers’ official forums.
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