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Xbox's biggest crisis right now isn't games. It's hardware. (Opinion - Jez Corden)

www.windowscentral.com Xbox's biggest crisis right now isn't games. It's hardware.

The PlayStation 5 is on track to outsell Xbox 2:1, again.

Xbox's biggest crisis right now isn't games. It's hardware.

"Today, PlayStation revealed that its PS5 has sold 40 million units. Microsoft doesn't share hardware numbers typically, but court documents, math, and slides from an ID@Xbox in Brazil seem to suggest the Xbox Series X|S line-up is around 20-23 million units sold globally. That essentially puts the PS5 at a 2:1 advantage against Xbox, but perhaps the split is even worse than that beneath the surface. "

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  • Once again you talk about it like the are owed the #1 place rather than having to, you know, compete for it. Are you going to tell me that they didn't get any market benefits from, say, experience with OS and the hardware architecture as well as the networking and cloud technologies that they use? It would make more sense to assume that if not for this they could be even further down, but you are not even counting it because they are not exactly on par with Sony. You gotta do better than to just dismiss this.

    By the way, a paradigm shift is already happening. For a lot of people their phones are their primary computing and gaming platform, and while I'm not a fan of the practices in it, a significant change in the market is anything but unpredictable. The second largest gaming company is Tencent, a mobile-focused one. Mobile revenue has surpassed consoles.

    But that says nothing of the consoles that we could have tomorrow. It used to be that SEGA was one of the biggest console manufacturers and Sony wasn't even in the market.

    > > > It's worse for the consumer if Sony doesn't have a Microsoft to keep them in check. > >

    Sure, but what is the point here? The question here is whether Microsoft should acquire ActiBlizz. If it has enough capital for that, it's not going bankrupt. It would be a false dichotomy to treat acquisition and leaving the gaming market as the only two options. After all, aren't all the other companies they already acquired appealing enough? Or weren't they worth it? And if they weren't, why would this fix anything?

    Even if Microsoft is not so interesting a platform right now, Sony cannot relax or they could catch up, like they did in the 360 era. The only thing lacking here are Microsoft's own efforts.

    > > > What I would hate more though is if Sony ran away with an entire sector of the market when they're doing a lot of nasty anti-consumer stuff too, including trying to acquire exclusivity of a lot of the stuff Microsoft just bought. > >

    Well if you are concerned that the top player resorts to anti-consumer tactics, you shouldn't be defending that the playing field is "levelled" (only between two large players) through more anti-competitive and anti-consumer tactics. If you think it's shady that Sony paid to have FF16 as an exclusive, why are you defending that Microsoft does that to Starfield? At least when it comes to Sony, Microsoft could have outbid Square for exclusivity

    Which I want to make clear, it can do. Because it has a lot of money, enough to buy Activision Blizzard, the 6th largest game publisher. It could be funding new studios, it could be playing from Sony's handbook, but they decided to one-up them instead by consolidating the market and taking away options from everyone else in a far more concrete way.

    The ideal solution here, is that Microsoft's acquisition should be blocked but Sony should also be punished for anti-consumer tactics.

    • > > > Once again you talk about it like the are owed the #1 place rather than having to, you know, compete for it. > >

      Not at all. I'm saying they have little chance of making Sony even sweat without the acquisition or something like it. Even after this deal, they will not be the #1 console. It will just be closer, and close enough that they decide to stay in the console business.

      > > > By the way, a paradigm shift is already happening. For a lot of people their phones are their primary computing and gaming platform, and while I'm not a fan of the practices in it, a significant change in the market is anything but unpredictable. > >

      That seems to be a parallel market rather than one that would overtake it. There's a non-zero amount of overlap, and you can find plenty of examples, but there seem to be games built for mobile and games that aren't. If this is the paradigm shift you expect to shake things up, are you saying you expect Apple or Samsung to enter the console market?

      > > > It would be a false dichotomy to treat acquisition and leaving the gaming market as the only two options. After all, aren't all the other companies they already acquired appealing enough? Or weren't they worth it? And if they weren't, why would this fix anything? > >

      You know how Spotify has exclusives besides Joe Rogan but still got Joe Rogan exclusive? It's the same answer. A bunch of smaller acquisitions move the needle a little bit each. One large acquisition moves the needle a lot on its own. In aggregate, they all make the product desirable. Microsoft needs to move the needle a lot to catch up to Sony.

      > > > Sony cannot relax or they could catch up > >

      Maybe now after this deal they can't relax, but they've been going down this path of requiring arbitrary upgrades from PS4 to PS5 in a way that Microsoft had not been, which is the kind of move you only make when you're relaxed enough to take advantage of your customers. Plus their own exclusivity deals.

      > > > If you think it's shady that Sony paid to have FF16 as an exclusive, why are you defending that Microsoft does that to Starfield? At least when it comes to Sony, Microsoft could have outbid Square for exclusivity > >

      Defending is the wrong word. Why do you think Microsoft has Starfield? Because they outbid Sony. This acquisition happened because they outbid Sony as well. At the scale that Microsoft is operating at, they may as well buy them outright; and word on the street was that Zenimax and Square Enix were both seeking to be acquired. Activision only makes like 4-6 franchises anymore anyway, so it's basically the same thing as buying exclusivity to those franchises but with more upside.

      > > > It could be funding new studios, it could be playing from Sony's handbook > >

      Exclusivity and studio acquisitions are both out of Sony's handbook. Microsoft just has a bigger pocketbook.

      > > > The ideal solution here, is that Microsoft's acquisition should be blocked but Sony should also be punished for anti-consumer tactics. > >

      The ideal solution here is one that forbids exclusivity, but I have no idea how to do that ethically.

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