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Machiavellian on 25 September 2020
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0D0 said:
I've got mixed feelings.

It seems to me that Sony is right, it is quite not sustainable as is, but the point is that MS is slowly creeping away from the console business. It's not like they don't want to sell consoles, they just won't care going forward. They're on the game business. They want to make you spend money and time on games. So the long term bet makes sense, particularly if this overcomes PS. If, and only if, PS owners start to move to MS, Sony will be locked inside with just console sales and their own game upfront sales. This could be a dire trap to get out. Again, if and only if MS pulls that off.

Once MS takes control of the business, stop investing too much and get a good cash flow, they can raise GP prices, they can display ads, they can create different GP plans, they can do whatever they want.

So I think GP as is, is still a MS investment plan, not a profit machine yet. And that's not sustainable forever. So, in case the market doesn't change and MS don't manage to take a good reasonable chunk of the market, GP will have to get more expensive and/or some publishers may opt out and/or kick off their own streaming services. At this point, MS might get in trouble.

Today, I agree that it's not sustainable, but in the future, it might work, particularly if it kills PS (I'm not speculating it will, but let's suppose).

That would only be if MS was the only game in town but they are not.  Sony and Nintendo will come screaming and kicking but they will also come and Google, Apple and Now Amazon with their new service means the battle is still going on, its just not the hardware console battle.  Gamers will still reap the benefit when all these heavy hitters compete because each one will need to maintain price, content and services that cater to us to bet those valuable subs and keep them.