Xbox Head Phil Spencer Said "The Business isn't About Selling How Many Consoles "

[KBG29]

It is a tough pill to swallow for the core gaming community, but Phil is right.

A large console user base has been very improtant up until now. Gaming at the highest level was only possible via a Console or an expensive PC. Since most consumers could not handle the up front cost of entering the PC market, or simply didn't want a PC in their entertainment center, Consoles became the home of the best gaming expereinces for the majority of gamers.

Going into next generation this will no longer be the case. Thanks to advancements in networking, and accessability to high level computing via the network, nearly every device will be able to deliver AAA games. Now we are moving from an era where we had games accessable to only the ~200 Million people that would buy a dedicated device, to over 2 Billion people that can access the most current games through the devices and services they already have.

The potential userbase for AAA games will increase by 10X next generation, as consumers will no longer to invest anything to gain access to them. People will be able to choose from a number of streaming services available on the PC, Console, TV, Laptop, Tablet, and Smartphone they already own. The entry price to play the most advanced games will be $0 for Free 2 Play Titles, potentially as low as $5 a month for Access to AAA games via subscription services, and at most $60 to out right buy a game on one of these services.

Consoles sales are no longer important going forward. Consoles will no longer be a barrier to accessing the best games. Consoles will become a premium method in which the Gamephiles invest, to get the best possible gaming expereince.

The majority of console gamers will be happy enough with streaming over the next decade. I fully expect console sales to fall, potentially by as much as half, if not greater, as the casual gaming audience no longer sees a reason to invest $400+ into something that gives them access to something they will only see as slightly better than what they already have. Most of the Fifa, Madden, NBA 2K, Grand Theft Auto, Call of Duty, and Fortnite crowd will not invest in a next gen console, as they move to playing games on their Smart TV, Laptop, or Phone.

That is the reality of the future we are heading for, but don't be scared. Consoles are not going anywhere, Physical games are not going anywhere. The business is simply expanding to offer more choices, and reach a wider audience. The only thing core gamers might have to come to terms with, is that consoles and physical games will very likely become a more expensive hobby. For those that truly love the console and physical experience, they will pay the price. Everyone else will stream, or if they are stubborn enough, then they will walk away, but that is their loss.