For a major console game release these numbers are underwhelming.\u00a0 This is especially true when one considers that Microsoft Flight Simulator is free for Game Pass subscribers (starting at $5 a month).\u00a0 However, it is part of larger strategy on the part of Microsoft to expand its game ecosystem.<\/p>\n
In recent years, Microsoft has found itself in an arms race with Sony to target the high-end console game consumer with big AAA titles.\u00a0 However, both companies have not been reaching many of the interesting niches in the growing game market.\u00a0 The recent DFC Intelligence consumer segmentation<\/a> indicates that the high-end console games are reaching less than 5% of the total global gamer market.<\/p>\n Microsoft Flight Simulator is not going to significantly change that ratio, but it is a sign of gradual demographic expansion.\u00a0 Microsoft is reaching out to the audience of high-end PC consumers that spend a great deal of money.<\/p>\n Running Microsoft Flight Simulator requires a high-end PC.\u00a0 In addition, for the best experience one needs high-end controls.\u00a0 Thurstmaster is a company that specializes in high-end accessories for flight simulators and racing games.\u00a0 It is telling that flight controls from Thurstmaster and other companies have been completely sold out recently.\u00a0 Given that racing game accessories are fairly available, the culprit is likely Flight Simulator.<\/p>\n Recent DFC Intelligence forecasts estimate hardware spending on high-end PC game hardware to grow to $74 billion by 2024<\/a>. \u00a0\u00a0Products like Microsoft Flight Simulator are a perfect example of why consumers need a high-end PC.<\/p>\n Of course, there are plans to launch Microsoft Flight Simulator for Xbox consoles.\u00a0 However, flight simulations are a genre that is best suited for a PC setup, less so for a TV-based system.\u00a0 Flight simulators work best when one is sitting close to a decent size monitor.\u00a0 They are clearly not suited for\u00a0 mobile screens, but today\u2019s mega-size TVs are also not ideal.<\/p>\n Microsoft Flight Simulator works well with the Xbox One controller.\u00a0 However, a true fan definitely wants to upgrade to a flight sim desktop setup.\u00a0 These setups can easily cost more than a $500 console system.<\/p>\n The challenge Microsoft faces as it looks to expand its audience is that console hardware is not becoming the most important feature.\u00a0 With high system requirements, Microsoft Flight Simulator is perfectly suited for Microsoft\u2019s cloud gaming service.\u00a0 In this case, owning an actual Xbox (or high-end PC) is not necessary.<\/p>\n As we have discussed, Microsoft\u2019s movement to a service-based model could significantly expand their game business<\/a>. However, it is a long-term play.\u00a0 In the short-term it is likely console sales will suffer as both Sony and Nintendo offer more attractive options for a dedicated console game consumer.<\/p>\n The challenge with a company like Microsoft is that they struggle to stick to a long-term strategy for what is to them a side business.\u00a0 Once upon a time, Microsoft was a major player in PC game accessories, including flight simulation controllers.\u00a0 However, the PC game business was killed off with the movement to console.<\/p>\n Right now, Microsoft is looking to reach consumers across all platforms.\u00a0 The problem is the company is still very dependent on its Xbox console.\u00a0 If the Xbox Series struggles in hardware sales will Microsoft stay the course?<\/p>\n Recent DFC Intelligence forecasts predict the PlayStation 5 to significantly outsell the Xbox Series S\/X<\/a>.<\/p>\n Stay tuned from the upcoming DFC reports on developments on the new console systems and other major issues in the video game space.\u00a0\u00a0If you would like to schedule a talk with a DFC analyst contact us here<\/a>.<\/p>\n The DFC Intelligence Executive Brief series<\/a> is designed for busy industry executives, leaders and investors that want focused analysis of the key issues in gaming today vs lengthy reports . The series includes access to top-level forecasts and regular briefs that come out every two weeks or more.<\/p>\n Briefs are on major topics and upcoming trends such as eSports, cloud gaming, new product announcements, VR\/AR and much more. Subscribers gain regular analyst access including the capability to pull specific research data as needed. Subscribers are given the opportunity to provide feedback on topics they would like to see covered.<\/p>\n The Executive Brief Series is only available to qualified executives and investors.<\/p>\nDFC Intelligence Executive Brief Series<\/h2>\n
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