Microsoft, which rolled out its next-generation video game console Xbox One late last year, faced some tough competition from rival Sony PlayStation 4 and still continues to do so.
PlayStation 4 has sold 3 million more units than Xbox One, despite releasing around the same time. Xbox One even had to take down certain features soon after its launch, after the feedback from fans advised them on it.
Microsoft has also recently announced that it will roll out Xbox One without the Kinect motion control for $399, to attract gamers and promote the console's sales.
Yusuf Mehdi, Microsoft's chief marketing and strategy officer of Xbox, recently gave his reasons on why Xbox One was not able to capitalize and why its rival outsold more units.
Mehdi feels PlayStation 4 sold more units than Xbox One because of its higher market share. He also believes that there was a price difference with Xbox One being bundled with Kinect, and thus its price became $499, compared to PlayStation 4's $399.
"It's hard to really assess the gap in sales. They're in many more markets right now than we are. They're in 40+ markets, we're in 13. People have been more satisfied with the Xbox 360 than the PS3, so in that respect people have less of a need to upgrade in the short term due to regular updates for the Xbox 360," said Mehdi in an interview with Forbes.
"So I do think the [price point] broadens the appeal and hopefully brings more people to Xbox One sooner," he added.
When asked if the decision to bundle Xbox One with Kinect was a mistake, Mehdi replied in negative and insisted that it was the "right call".
"No, I think it was the right call to bundle with Kinect. In the beginning of a new console generation, you're trying to set the bar for a new experience, and I think we did that with Xbox One. The proof is really in the usage. 80 percent of people are using Kinect which is remarkable compared to the last generation," Mehdi said.
He also stated that many of the players wanted the Kinect experience, and that is why so many people bought it.
"I think it was the right call, and now is a good time to offer more choice for people who haven't been able to get that experience," he added.