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It will not only NOT dominate but it will also sell less, DEFINITELY.

One thing people do not realize and wrongly assess is the brand power of xbox. It just is overblown in people's minds. Last generation x360 sold as much as it did because of

- price point (it was $299 for the entry model)

- PS3's late arrival

- spiraling network effects (people bought x360 because their friends bought x360)

 

...and NONE of these advantages exist today. Although there is some good inheritance from the 360 era, the bulk of the x360 users are ready to jump off ship as long as the other system has the games they are looking for and their friends have the same system.

The network effect is already in action. There is no such thing as ps4 hype, which is a very short sighted statement. If you go thru my estimate history, you'll see ps4 is doing exactly as expected. It is just most of the platform neutral people (probably over 60% of the console crowd) are now buying PS4 instead given that it is/was cheaper, it is selling more, it has way more consistent policies, it is more game focused, and more readily available (and of course it is more powerful).

This is also why XB1 looks more popular in the US among the consoles fans who are socially interacting but in actual sales, ps4 takes the lead hands down because for a more relaxed casual gamer, ps4 is hands down the default choice. Believe it or not those more relaxed console-neutral gamers out there are the majority and those who can swing them wins the generation. So, regardless of what Microsoft would do, Sony will win this generation even in the US and UK, their strategies (such as buying exclusives etc) will have a limited appeal, as console-neutral crowd overwhelmingly prefers the PS4.



Playstation 5 vs XBox Series Market Share Estimates

Regional Analysis  (only MS and Sony Consoles)
Europe     => XB1 : 23-24 % vs PS4 : 76-77%
N. America => XB1 :  49-52% vs PS4 : 48-51%
Global     => XB1 :  32-34% vs PS4 : 66-68%

Sales Estimations for 8th Generation Consoles

Next Gen Consoles Impressions and Estimates