Yeah, it's clear going forward that MS will use the sales beating they're receiving to justify buying as much as they can get away with, but if their leadership continues to suck, it won't matter too much.
That won't work. Regulators may not be perfect, but they aren't complete idiots. MS have already played the "we're in 3rd place" card for ABK, it wouldn't work again for another publisher after they just purchased one of the largest in the industry with the same card of an excuse. Plus if those hardware sales lagging continued even after getting Zenimax and ABK, the question could easily be asked if MS are in third simply because the actual customers in the market do not see value in their brand compared to Sony and Nintendo?
But about the actual Xbox numbers...I see some people say it's because of lack of exclusives, but exclusives hardly account for the majority of software sales. Even in Sony's record year, 1P software only accounted for 18.5% of total software sales. PS and Xbox share like 90% of the same software library, especially among the biggest Western and most of the biggest Japanese 3P games. FIFA, COD, GTA, Fortnite, NBA 2K, Resident Evil, Sonic, etc., are on both platforms. So it can't be as simple as saying the sales gap is due to software library.
Is it lack of big marketing deals for Xbox? Maybe. But even for games where Sony doesn't have marketing deals, usually PlayStation has the lion's share of those software sales across Europe, even in the UK. So even laying the explanation on that is too simple. I just think Xbox has a serious brand perception issue in Europe that's developed over generations of neglecting to zero in on the market, and now they're paying the consequences of that neglect with Series X & S. It probably has less to do with those consoles themselves than it does with bad management choices for the European region dating back to 2001/2002.
In some ways I'd say it could be comparable with what happened with Sega and the Dreamcast; the Dreamcast itself was a fine system, but it paid the price for years of bad decisions between the 32X and Saturn, and we saw this happen in particular with the European market. I think something similar is happening with Xbox today, it just took longer to occur because Microsoft didn't have screw-ups clustered as closely together at such big levels as Sega did between 1994 - 1998.
Sales slowing down on year 3 is absurd and shows that PS5 stock problems were inflating Xbox numbers.
Many people were probably getting Series S consoles as a stop gap before getting a PS5 and MS doesn't seem interested/capable of producing more Series X consoles.
Now the PS5 Slim, PS5 Pro and all the upcoming games will only make things worse for Xbox. MS should just apologize and quit the console market.
IIRC Series X consoles are actually readily available across Europe, and have been for months. So it's not a lack of X supply why sales are down; it's lacking demand.