370°

Industry Analyst Argues Either Sony or Microsoft Will Need to Exit the Console Market

One of either Sony or Microsoft must exit the console space, argues analyst group DFC Intelligence. That’s because it believes there isn’t “room for more than two major console systems” and it doesn’t expect Nintendo to go anywhere.

“Sony or Microsoft will struggle mightily in a distant third place – largely depending on which of those companies can gain early momentum,” the report says of hypothetical new hardware, expected in 2028.

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gold_drake158d ago

as things stand right now, theres one struggling in the console space.

but that 3rd place holder, has a 3 trillion dollar backer.

i dont think its as easy to say that one has to "go"

piroh157d ago

They simply can't donate their console forever, they, as any other corporation, want profitable product.

IMO maybe they will try one more time with some console/handheld hybrid since Ninty shows it's success, then it'll be Sega route for them.

157d ago
Cacabunga157d ago

It is fine they want to become a digital service provider but the way they are building up the brand is terrible. On the other hand there is nothing that excites us gamers..

Zeref157d ago (Edited 157d ago )

When they sell an Xbox. It's not just about the box. They gained a costumer that will spend hundreds of dollars in the ecosystem. It's the only console that has GamePass as well.

They're not just gonna give up money just because

SoloZelot90156d ago

This is why they're pushing to be more of a platform instead of a console.

Their console business has failed so they're trying to succeed elsewhere.

badz149156d ago

when will people stop blaming Sony for the Pro's price? it has been proven over and over that a PC with similar spec costs way over $1000! do they want Sony to take the losses like they did with the PS3? fro $700, I think Sony has tried their best to cramp as much new tech as they could in the Pro. The main issue with gaming hardware at the moment is the price for GPUs (and CPUs too if you also wanna go there) which are totally ridiculous! the PS5 and Series X aren't getting their permanent price cut yet despite already being in their 4th year but we even saw prices went up instead in several markets! this just shows how bad the pricing for the hardware in the current market. and it's just going to get worse.

AMD have TSMC making all their chips but so do the others. TSMC can only output so much and they also have to continue moving forward in tech thus making older chip models with older architecture in consoles for longterm makes less and less sense. The dire situation we are in is no thanks to no competition in the fab space especially for CPUs and GPUs. Intel was supposed to bridge this gap but is failing even on their own chips and their recovery looks rocky at best as the gap between them and TSMC is just getting wider by the days. until there's another company that can take on TSMC head-on and reintroduce competition in that market, gamers can kiss goodbye to reasonable hardware prices for now.

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Profchaos157d ago (Edited 157d ago )

Having a 3 trillion dollar backer doesn't mean they have an excuse to bleed money indefinitely.

Xbox has never turned a profit it came close in the 360 and would have if rrod didn't happen

They are a business and want to make money at the end of the day is clear they are trying everything to pivot and turn a profit but it's not happening so it's very likely they will become third party

gold_drake157d ago

true

but they have been so far. and if MS hasnt pulled the plug yet, whats to say they will ever do it.

Reaper22_157d ago

They haven't profited on consoles but with games and services they are making a lot of money. Especially for this year which has been very good for them. Hardware sales isn't where the biggest chunk of profits come from. Not even for Nintendo.

crazyCoconuts157d ago

There's gotta be a line somewhere where they say it's not worth it anymore to invest in the next generation. None of us know where that line is, but every year they get closer to it (diminishing sales) and they're acting like they already crossed it.

Zeref157d ago (Edited 157d ago )

Idk how this myth still exists. They have been profiting from Xbox for ages. You think people just buy the console and never buy any games?

neutralgamer1992157d ago

Profchaos

hardware rarely is making profit. These companies make a lot of profit selling sofrware and services. So yes xbox has been profitable for a while now. Hardware is just so consumer buys into the system but than software is where they make great profit

FinalFantasyFanatic156d ago

@neutralgamer1992

The only one making money on hardware is Nintendo, but they build with older, weaker hardware, it works for them, because their exclusives do most of the heavy lifting, plus they also go in a different direction to Playstation/Xbox.

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Zeref157d ago (Edited 157d ago )

Nobody will leave.

All of them are healthy businesses that make billions every year.

Profchaos157d ago

I tend to think they will pivot over and over again until they figure it out.

It's worth remembering that they entered the console market as a direct result on the ps2 and it's ability to run Linux Microsoft saw that as a threat to their home computing operations and the Xbox was a direct response the original Xbox was built by two competing teams in Microsoft the one that won was Seamus blacklys team with a more console like OS abd game first approach thankfully but there was a moment where they almost put out a windows box.

What I'm trying to say is that early 2000s mindset is disappearing Microsoft no longer see game consoles as a threat to home computers.

However now that steam OS is coming they are apparently concerned again that steam OS will eat into their dwindling home computer market so they will be doubling down on a strategy to make pc gamers happy.

All I know is there's strange times ahead

Green-Smurf157d ago (Edited 157d ago )

Split the cost and build 1 gaming console. Independent streaming services and their owned IPs are where the they profit as well as not taking hits on 100% console manufacturing costs. MS has a better OS and Sony has better hardware. Combine the two

crazyCoconuts156d ago

I don't think Xbox has the better OS - it takes up more space and resources if memory serves. I don't know if they kept the Xbox One architecture with the XSX (I'm guessing they did), but that was known for not being efficient at all. PS is Linux based and runs pretty lean - not a hint of Windows

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Lightning77158d ago

Who are some of these analysts exactly? For starters, they both Co existed for a 2 decades. Second yes Hardware wise Sony has it locked down along with 3rd party support and of course their strong 1st part output with games that sell their console strongly, currently and going forward. MS has weak and quickly decreasing hardware sells but has reach with high MAU (this is an Xbox) engagement, and services like GP. Their strategies are different but no way they can't exist suddenly, makes no sense. Stadia didn't last long and got abandoned because gamers rejected a possible 4th platform. The big 3 have always co existed. Their strategies may change and pivots may happen because that's buissness you have to adapt. These analysts makes no sense.

gold_drake158d ago (Edited 158d ago )

to be fair, i absolutely agree with you, but this is about consoles specifically.

not gaming overall.

but i doubt any of those two or three will ever bk down.

Lightning77157d ago

I'm talking about consoles as well. MS of all are questionable. Though they're using services and treating Xbox as a Windows brand by putting Xbox everywhere.

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Extermin8or3_157d ago

One of the three is already transitioning towards being essentially a 3rd party publisher. Microsoft seem likely to potentially even just start releasing essentially custom PC's and maybe even letting other hardware makers release custom hardware pc's with a gaming custom version of windows..... As it is the Xbox OS is basically a custom version of windows 8.

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20°

EA Cancels Black Panther Game, Closes Cliffhanger Games

Electronic Arts is canceling its planned Black Panther game and shutting down developer Cliffhanger Studios, IGN has learned.

70°

Cyberpunk 2 Has Entered Pre-Production as Cyberpunk 2077 and The Witcher 3 Celebrate Massive Sales

Cyberpunk 2077 and The Witcher developer CD Projekt revealed its earnings and announced that Cyberpunk 2 is now in pre-production.

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200°

Capcom reveals its PC game [digital] sales overshadow console, and it's only growing

The earnings reports of Capcom's Fiscal year 2024 showcase the growth of PC over console, with 60% of game sales being made on the former.

Vits1d 6h ago

What’s interesting is that, given how well their games sell, it’s very likely most of them fall into the 25/75 revenue split bracket. The larger ones, like Monster Hunter, are in the 20/80 bracket.

So even accounting for the vastly superior regional pricing on PC, I wouldn’t be surprised if revenue-wise from digital sales, both platforms are close, or if PC is ahead as well.

neutralgamer199216h ago(Edited 16h ago)

Yes PC is the biggest platform and it has definitely improved as a home console of sort plug and play. It's the only platform with actual freedom for gamers with modding. I was a console gamer for over 38 years and now I only play on Pc. Whether you are buying pre-built or building it yourself it's now easier than ever before to jump in

And my experience with pc gamers has been excellent, they are helpful with any questions on pc boards

FPS_D3TH8h ago

As a gamer who also loves replaying his old favorite titles, possibly with a few mods as well, I can’t imagine ever getting another console.

TheColbertinator16h ago

Make every game available on Steam by default. The consoles are secondary

Profchaos15h ago(Edited 15h ago)

They spoke about resident evil and monster hunter I would actually find the monster hunter breakdown more interesting tbh as I've always felt like this game would be at home on PC

but for resident evil it's always felt like a PlayStation mainstay despite having exclusivity elsewhere likely because it was where I first played it. The game feels like it's begging to be played lights off in the loungeroom late at night or also in VR I've never been as scared as I was playing re7 in VR

dveio12h ago(Edited 12h ago)

Is this really suprising? Looking at the evolution of the Switch, X|S and Playstation 5?

Eonjay6h ago

The biggest cause is probably the lack of game purchases on the Xbox platform. Also keep in mind this is only digital sales so there is a chunk of sales not being shown here.

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