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I truly think Starfield ULTRA-HYPE during many months (or years), and its final flop, damaged very hard the console during that 2023 Xmas season.

But the real reason of the collapse... I don't know. Maybe the price. Maybe the negative of Microsoft to "play the game" with the specialized media like Sony continually does, with lots of money, since the 90s. Or maybe MS probably focussed too hard with the ABK deal during 2 demanding years of negotiations with many public authorities, so... maybe they forgot to compete harder in the market. It was worth it, nonetheless: Now MS can perfectly launch a new generation and take advantage, as they did with 360. They now have a huge amount of new franchises to use as a release must-have for a new console.