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Lets say Xbox hardware has a peak of 50m.

  • Xbox releases an Xbox
  • ASUS releases an Xbox
  • Acer releases an Xbox
  • HP releases an Xbox

I'm just listing random companies.

But now they all have to share a slice of that 50m pie. Unless they completely differentiate themselves, that pie ain't growing, it'll still be Xbox hardware.

Subsidies would surely have to be larger, revenue sharing would have to be larger, or the hardware would have to be extremely expensive that it becomes closely priced to a gaming PC and then, why would you bother getting a console when you could get a gaming PC for a similar price which does even more than a gaming console.

Does Microsoft really want to give away their 30% cut? Not only that but let people take a cut from the 100% of revenue they get from 1st parties? Okay fine maybe if someone else does Xbox hardware it cuts out all the money it costs Microsoft to make Xbox hardware but then that manufacturer isn't receiving a 30% cut of every transaction unless Microsoft lets them because it will be Microsoft's store the transactions are being made from, then Microsoft loses money from the 30% cut! Which we're talking billions here, and not only that has to give away more 1st party revenue.

Rather than being the only Xbox hardware on the market and taking it all for themselves.

Feels like they'd have to make massive changes to their business modelling, Lol.

Unless I'm being dumb and not seeing something.