What's going to happen here is that Sony will slowly shrink and then close their 1st party studios since some part of Sony's leadership has deemed them "unnecessary". Sony's corporate leadership has taken the same braindead position as Phil Spencer by thinking "I could make the greatest game of all time and it wouldn't move console sales one bit". Once you start thinking that way 1st party games take a backseat to whatever other nonsense you are doing. It's already started happening. Bend Studio got its game canceled. Insomniac had layoffs despite Spiderman 2 selling insanely well. The Gravityrush team was let go. Naughty Dog hasn't made a game since 2019. Media Molecule is pretty much dead.
It's so frustrating to see such non-competition between Sony and MS. It's a two horse race and there's no penalty for coming in second anymore. Anything Xbox does to make their brand worse Sony will copy because where else are high-end console players going to go? It's similar to how the Republican and Democratic parties work in the USA. Republicans plan to increase the national debt by 100%. Democrats counter by saying they will only increase the national debt by 95%. A few years later Republicans say they will increase the national debt by 180%. Democrats then decide that they will only increase it by 175%. So you have this non-competitive two man race to the bottom.
Thank God for Nintendo, Indies, and quirky Japanese 3rd party devs. That's where creativity will come from in this industry.
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