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yvanjean said:
Wow some people on here are totally clueless about finance and business. News flash Microsoft Xbox division is profitable and making money. This thread is claiming Microsoft can't afford to release after Sony? IF Microsoft wanted they could release a next gen console for free, they can afford to do anything. Does it make business sense, that's the real question!

The OP is forgetting that Microsoft have a 4k ready consoles already with the Xbox one X, that means Microsoft can wait it out and let Sony release the PS5. Xbox one X can compete directly with the PS5 on price point alone and by that time Microsoft will already have release their plan for the next consoles that should trump of all of PS5 hardware. Microsoft has already shown that they want to be the leader in power and that their entire focus is switching to software in order to really compete with Sony. Beating Sony would be nice but that is not Microsoft motivation, they are first and foremost a business interested in generation profits. That's what really drive the company. Being the market leader would mean much high revenues and profits therefore that is one of their indirect goal.

If Phil is still head of Xbox, Microsoft for the Xbox Two will build a consoles that will continue the tag line "The world most powerful consoles". I hope they wait for Sony to reveal all their card and have price parity with the PS5 when they release their next console. The entire focus for Xbox Two will be on it's consoles exclusives launch lineup on the "The world most powerful consoles".

The XB1X will be vastly inferior to the PS5 in tech, especially when we talk about the CPU. Not to mention, there are no developers who develop games with the XB1X in mind. They develop with the XB1S/PS4 in mind since they have larger userbases.

Giving the PS5 a year head start isn't a great idea and can actually hurt Microsoft's gaming revenue. See the 360 and PS3 as an example. It allowed Microsoft to eat away a significant chunk of the Playstation userbase and exhibit substantial growth from the OG Xbox to the 360. Similar thing will happen in this hypothetical scenario, but it won't just be a matter of the PS5 taking away a chunk of the Xbox userbase. It will also cause a ripple effect into services and MAU.

Ecosystems have become important to gaming businesses. The goal of Sony, Microsoft, and Nintendo is to make it tough for consumers to leave their ecosystems. They achieve this goal through providing good software (e.g. Sony and Nintendo's 1st party) and services (e.g. OG Xbox and 360 BC). If Sony manages to lock a good chunk of the Xbox userbase into their ecosystem, then it may lead to a potential loss of customers for Microsoft. This is not to say consumers cannot play on both Playstation and Xbox, but not all consumers shit out money and have all the time in the world. If they have to choose only one, then they will go with the ecosystem that provides better value. However, there won't be much of a choice for next gen if the PS5 does get a year head start, especially if it provides PS4 BC.