(Business Perspective) Does MS really need Xbox Hardware?

[Pemalite]

Azzanation said:

The way I see MS working GP into other eco-systems is to stop selling competitive products like Hardware. Many fail to understand the pull GP has. Sony actually gains more customers if it became an option. More people will buy PS knowing they have the option. More PS sales = more money.

Gamepass has lost momentum. - They have already reached market saturation.

https://gamerant.com/xbox-game-pass-growth-subscriber-count-2023-report/

And as countries face inflationary pressures, one of the first things homes are culling are subscription services to make ends meet.
https://www.forbes.com/sites/pamdanziger/2022/05/10/as-retail-opens-up-and-inflation-closes-in-consumer-subscription-fatigue-is-on-the-rise

Azzanation said:

PCs are living proof you don't need competition and ironically PCs offer the best value in gaming, no online paywalls, best and more common discounts, bigger variety of games and the list goes on.

PC has always had competition.

Steam competes with Origin, uPlay, GOG, Epic, Desura, Impulse, Direct2Drive, Windows Store/Games for Windows Live, Amazon Digital Services and more.

The reason why there are no pay walls is because you would literally bleed customers to the competition.

Azzanation said:

We have competition now and prices have been going up. Sorry to say, competition isn't helping. 

Actually, prices have gone up because of the LACK of competition.

You are only looking at the consumer-facing products and assumed competition and price rises are one in the same.

There is more to the chain of building consoles than what you see on the shelf.

The fact is... TSMC has the fabrication market locked down and has essentially monopolized leading edge nodes... And when everyone is scrambling for that limited capacity, TSMC can raise prices.
Eventually those costs MUST be passed onto the consumer in one way or another.

It's due to a lack of competition.

The more you know.

Azzanation said:

Competition does not equal better games, and to debunk your points on pricing, look at the industry today. We have price increases across the board, in a industry with Competition. Companies will price hike regardless. Because they know when one does it, they all follow to push the agenda

It does mean better games.

Let's take Sim City for example, massive shit show.

But then competition gave us Cities: Skylines which wrote that wrong.