Phil Spencer: "Nintendo future exists off their own hardware"

[VAMatt]

Soundwave said:

VAMatt said:

I think it is inevitable that Nintendo will need to move their games off of their own hardware. I think dedicated hardware is on its way out. So I think, at least in some sense, Phil is correct.

I also don't think Nintendo has the scale required to compete effectively in the streaming business. So they will either have to partner with somebody, or they will be acquired.

Sony is toast in that scenario too probably ... they're not going to win any kind streaming service war, not when they have to compete against companies not just 1 Microsoft, but Apple, Netflix and others. Their whole business model and success is rooted in basically the same physical Playstation hardware model from 1995. That won't work for them if you change the game entirely. 

Possibly. But, Sony is a more diversified technology and entertainment business. I think they have a leg up on Nintendo in that respect.  Also, because they are somewhat diversified, I think they make a less attractive acquisition target for many companies.  I don't think Microsoft wants to buy in to the audio and video equipment industry, for example.  They could of course spin that stuff out, but that complicates the deal.  

Definitely Sony is under threat from a takeover of the gaming business by tech megacorps. Something about their business is going to change substantially. Maybe it's being acquired, maybe it's doing some acquiring. I don't know. I just think they're in a different position than Nintendo, which could lead to a different end result for the company.