Microsoft expects the trends to continue into the following quarter
The big picture: Some analysts predicted the Xbox Series X would outsell the PlayStation 5 in 2020. Instead, Sony's console has likely sold more than double the Xbox Series S and X. The situation is so dire that Microsoft hasn't disclosed precise unit sales in over a year and has begun releasing its games on competing consoles. The company's latest earnings call certainly won't improve investor outlook concerning the future of Xbox hardware.
Something to look forward to: When Microsoft announced that its June 9 Xbox showcase would be followed by a separate presentation for an unnamed game, no one doubted it was Call of Duty. Since Activision started to unveil teaser trailers, Microsoft has now confirmed the game's title and plans to release it simultaneously at retail and on Game Pass.