The console war is over

[DonFerrari]

Azzanation said:

derpysquirtle64 said:

I still don't quite understand why are you stating this as a fact when there is clearly no evidence that this is a case. I mean I get that the audience is bigger potentially in this case but does it result in bigger revenue? What do you think would be better:

a) If MS sells 70-80m consoles and all this 70-80m people are buying through their store which brings an enormous revenue. VGC has Xbox One software attach ratio at around 6 games. But considering that the digital purchase share is a bit higher than 50% right now, that's would bring us at around 12-13 games per console and probably 1b software sales in 6-7 years.

b) MS sells 30-40m consoles but sells their own games on Steam. This will result in a loss of half a billion software sales on their platform in return of let's say having an audience of 100m people who can buy their games from them. 

So, do you think that an ability to reach 100m of additional customers just for first party games worth the trade off of 40m customers who are locked in to your storefront completely? I personally don't think so.

Its why they have options, Xbox still has an audience, but to MS, there is a reason why they are focusing on GP and multi-plat releases to Steam etc as it covers more grounds to grow. They aren't pushing people to buy a Series X at launch hence the cross release games. I haven't done the research MS has done but there actions are clearly showing that the console sales isn't enough and they want more. 360 sold 85m consoles and 1b software and yet it still lost money in the long run and was only saved by its subscription model. XB1 sold 50m consoles, its probably more profitable than the 360 however still isn't satisfying for a major corp like MS. So Hardware isn't the answer for them. Weather they become bigger than PS isn't the idea, its finding a model that suits there vision and needs. If they wanted to compete with PS head on than they wouldn't be doing this PC and GP thing. 

It lost money mostly due to RROD on X360 and they decided to go different revenue stream because they can`t compete on console against Sony.