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64% of UK Xbox One owners didn't buy a physical game in the last year - Kantar

Scorpio launch should target 2m disengaged Xbox One owners

The latest research from Kantar Worldpanel says that 64% of UK Xbox One console owners did not buy a physical game during the last year.

That leaves over 2m disengaged Xbox One fans in the UK, the firm says, which Microsoft should look to target with its Scorpio launch.

Of course, this does not factor in digital sales, which has been generating a bigger slice of the console market in recent years.

However, the real opportunity lies in Xbox 360, the data tracker says. There are 2.5m Xbox 360 owners in the UK who have yet to upgrade to the current generation of systems (PS4/Xbox One). That gives a big opportunity for Microsoft to upgrade players, either with the new Scorpio or with the more affordable Xbox One S.

Kantar's data says 10.5% of the UK population currently owns a 4K TV, and when it comes to modern console owners, that percentage sits at 16.5%. That gives Xbox Scorpio a potential 4K market of 1.2m consumers, when the machine arrives later this year.

Analyst firm IHS has also given its views on today's Microsoft E3 press conference. The firm predicts a price point of $499/€499/£429, and that this will result in 500,000 sales during Q4. However, it won't transform the Xbox business outside of the US and UK.

"The expected price differential between Project Scorpio and Xbox One S is high enough to reduce the impact of the new platform on the broader console audience," the data company said. "Project Scorpio is not the device to re-ignite Xbox One sales in continental Europe and to gain market share from Sony in key sales territories outside of USA and UK."

As with most things in the games business, software is crucial.

"Sony's solid roster of first-party titles and its timed exclusives with key third-party games mean that Microsoft has ground to make up around content exclusives," the firm explained.

"Microsoft's smaller collection of first-party studios suggests that it needs to announce more third-party exclusives to help wrestle the market initiative away from Sony. It is likely that some of Microsoft's exclusives will centre on the power and capability of Project Scorpio, although its strategy not to divide the Xbox One user base means that any move here will be relatively limited."

Microsoft's pre-E3 press conference starts this afternoon (2pm LA time, 10pm UK time).

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