Reality, Console Industry has become Stagnated.

[aTokenYeti]

I think Nintendo is the only company of the big 3 that has a healthy and sustainable business model
console space. Hardware is sold with healthy margins rather than at cost, development costs are lower than their competitors, and they consistently make games that are high quality and what their fanbase is asking for.

If Sony wants continued growth in profit margins and number of users playing their games, they either have to radically alter their console business model or expand out of console, and it seems like they are doing the latter option with their PC push.

As for Microsoft, they don’t really seem to care about console anymore. They have their console player base of about 50 million people, they know it’s not going to grow anymore unless they were to make radical reductions in profitability for extended periods of time that their shareholders have no appetite for, and what’s left of Xbox’s fanbase probably isn’t leaving (honestly, if you are an Xbox owner and haven’t already switched to PlayStation, you probably never will at this point.)

I think this will just be the status quo for the console market for the next 15 or so years. The total assessable console market combining all 3 manufacturers is about 300 million devices globally and it’s been that way for 25 years, it’s not going to grow anymore. That doesn’t mean it’s going to die, but for companies that are looking for robust growth it will not be a priority market either