(Business Perspective) Does MS really need Xbox Hardware?

[ArchangelMadzz]

SKMBlake said:

Yes, we do.

Without Xbox controller, no dualshock and dualsense redesigns from Dualshock 3. Without Xbox Game Pass, no PS Extra (I don't count PS Premium, as it is mostly PS Now, which existed before). Nor even Nintendo Switch online retro games catalog.

During the late 80s/early 90s, it was Nintendo vs Sega and Atari (in the US), NEC (in Japan) trying to compete. During the 2000s, it was Sony vs Nintendo with Sega and then Microsoft trying to compete.

Competition is good for the market. And the current state of the market is very competitive.

Why do Sony keep making Xperia phones even if the whole market is basically around iPhones, Samsung phones and some chinese brands ? Because they want to have a presence in the market. And I'm glad they do, I always had Sony Ericsson phones (Sony only since 2011), their design philosophy is what I like about their phones. But they sell like 3 per quarter. And everybody gets inspired by Sony phones (waterproof phones, slow motion camera, fingerprint reader on the lock button, 21:9 aspect ration - mostly copied as 20:9 aspect ratio currently)

I would say yes we did*

Standardising online play for consoles earlier than it would've happened naturally, controller improvements, game pass etc, all those reasons you listed. But we most probably don't need the physical xbox anymore. Controller updates every few years is all that's really needed out of xbox.