With sales reports creeping in of Microsoft vastly underperforming and what looks like another gen in 3rd place behind the Nintendo and sony.Sony.
Recent studio acquisitions seem like a move into something like EA pass where Microsoft can offer big titles like halo, forza and elder scrolls across all platforms and got out hardware cost and a low attach rate to 3rd pay titles
You're still trying to view what Microsoft is doing through the lens of Sony or Nintendo's business model. At this point the Xbox console only exist to drive their subscription service. It will continue to exist as long as it drives subs and not because it sells more than X or Y company's platform. Microsoft ultimately wants you the consumer to perpetually spend $10-$15 a month on their service.
Sony wants you the consumer to buy multiple games that were $60 last generation and are now $70. What generation do they go $80? $90? I get that it's difficult to grasp but subscription services are the future of media. I'm not going back to buying individual movies and albums. I want a low monthly payment that grants me access to everything.
There will come a day where people are gonna say why should I pay $70 for one game when I can pay $10 or $15 a month and have an full instant library. This is literally Microsoft as Netflix and Sony as Disney playing out in the video game space but earlier days.
Microsoft is all in on their service. Sony has a service but they got one toe in and one out and they don't wanna release that old world business model. Netflix comes out with a movie and it's day one on Netflix. Disney comes out with a movie and maybe it's on Disney+ but they want you to pay an extra $30 for it and maybe it's got a 45 day window. Disney can't really compete with Netflix because they won't go all in on streaming. The numbers came out the gate strong but quickly plateaued. Arguably Disney has the better IPs than Netflix.
Netflix spent years in the trenches scaling that business and it's a machine now. Disney can't match their content even with more valuable IPs.
It's thew same tight now with Microsoft who is in the trenches scaling that business. Sony looks at that and they're like "yeah we're good with how things are right now."
So you look at Microsoft and say they're number 3 when really they're pioneering the next phase of the industry and scaling it right now. You see all these Johnny-come-lately streaming services like Peacock and Paramount+ and Disney+ they're coming out of the woodworks now. Signs of that are already showing in the video game space with EA, Ubisoft, Amazon, Google, Apple. Out of all of them Microsoft's model is the most attractive.