Microsoft recently argued in a case before the Federal Trade Commission (FTC) that it has lost the console wars to Sony and Nintendo. The case, which was brought by the FTC in 2019, alleges that Microsoft has used anti-competitive practices to maintain its monopoly in the video game console market.

Microsoft’s argument is based on the fact that Sony and Nintendo have both outsold Microsoft’s Xbox consoles in recent years. According to Microsoft, the Xbox One has sold only half as many units as Sony’s PlayStation 4 and Nintendo’s Switch. Microsoft also argued that its market share has declined from around 40% in 2013 to just over 20% in 2019.

The FTC has accused Microsoft of using its dominant market position to stifle competition. Specifically, the FTC claims that Microsoft has used exclusive deals with game publishers and developers to limit the availability of games on competing platforms. Microsoft has also been accused of bundling its own services with the Xbox, such as Xbox Live Gold, which makes it more difficult for competitors to compete.

Microsoft’s argument is likely to be a difficult one to win, as the FTC’s case is based on the fact that Microsoft has used anti-competitive practices to maintain its monopoly in the video game console market. However, it is possible that Microsoft could argue that its market share has declined due to other factors, such as the rise of mobile gaming or the increasing popularity of streaming services like Netflix and Hulu.

Regardless of the outcome of the case, it is clear that Microsoft has lost ground in the console wars in recent years. Sony and Nintendo have both seen their market share increase significantly since 2013, while Microsoft’s share has declined. This could be a sign that Microsoft needs to rethink its strategy if it wants to remain competitive in the console market.