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With a semiconductor shortages, I think both MS and Sony will be looking to make the consoles smaller instead of keeping them big and making less units.

MS will rely more on Gamepass across various devices and Sony will probably roll out their new version of PSNow across more devices too starting with their own TV's.

With chip shortages I reckon MS will double down on services.

Sony will look to strengthen their IPs via film, series and cartoons, and then follow it up with allowing you to download games on PC too via PC PSNow app.

A more powerful console probably won't be needed as it will take a while for developers to get used to the SSD tech and making the most out of UE5. We are a year in and we still haven't seen much of UE5.

The Matrix demo at us back to 1080p days and sub 30fps when at the start this gen was about 4K and 60fps. As hyped as I was, when the dust settled, I felt underwhelmed. I don't think we will see the engine firing on all cylinders until the end of the gen, the scale of the game is scaled back or the semiconductor shortage comes to an end and we get mid gen updates.

Next Holiday will be smaller next gen systems from both:

MS will probably redesign the Series X.

Sony will probably release smaller versions of both.

Sony will also release the PSVR 4K. Possibly 2K in each eye to keep costs down. They will probably push the headset with games, but also their big films, anime apps and TV shows.

GT7 will get an update with the launch or shortly after (let's be real, PD can't launch anything without a good ol' delay).

If Halo does well, MS will try sign off a ES series.

Sony will try double down on their mobile division on the back of Fate and we will probably see a new KZ with a free MP with a currency system like liberations had.