February 17th 2024.
There has been a significant shift in the gaming landscape. In a recent Xbox business update podcast, a reader argues that the most important reveal was not about multiformat games or new hardware. Many have dismissed the podcast as uneventful, but I disagree. While the discussion on multiformat games and new hardware may have been vague, it highlights a bigger issue facing Xbox - the need for more profits.
Although not explicitly stated, it is clear that Xbox is struggling to make enough money. The focus on growth, attracting larger audiences, and seeking new revenue streams indicate that relying solely on selling consoles and games is no longer enough. This is why Xbox has now turned to selling their games on PlayStation and Switch, and expanding into PC and mobile markets.
This move shows that Xbox will continue to release multiformat games and that more high-profile titles will follow suit. It's not just about selling individual games, but rather a constant stream of revenue. Microsoft knows that selling games to PlayStation 5 owners will not bring in enough profit, and even their highly anticipated game Starfield may not be enough. It's about diversifying and constantly generating income in order to make a difference.
As someone who owns all three current consoles, I am not too concerned about the multiformat drama. However, I find it more interesting that Microsoft and even Sony no longer see console gaming as a sufficient means to balance their books. Sony has also started discussing the need for alternative means to make money, although in a more roundabout way.
While PlayStation fans may be celebrating the fact that Xbox has seemingly dropped out of the console war, it's important to note that Sony is facing the same challenges. They may not be releasing their games on other consoles, but their solution seems to be focused on live service games. From this perspective, PlayStation fans may actually be losing out. Xbox releasing games on PlayStation and Switch could potentially benefit them, as it means Microsoft has more resources to create other games. On the other hand, Sony has all but given up on the types of games that made the PlayStation 4 a success. Not only do most fans not want live service games, but Sony has also failed to release any of them thus far.
It's clear that the console war is no longer relevant. Sony's lead in sales has not translated into financial success, as they too are seeking alternative means to make money from their games. In fact, it is Microsoft who is still focused on developing traditional, non-live service games. While they may have had some setbacks, they are actively trying to release games and have a number of titles in the works. Sony, on the other hand, seems to have lost their focus and is now scrambling to find a new direction. With no major new games coming out for the next year, one can't help but question the purpose of purchasing a PlayStation 5.
I've noticed many people trying to downplay the significance of these developments, but I believe this week marks a milestone for the gaming industry. It may not have been an exciting reveal, but it is an important one. Nintendo is now the only console manufacturer that solely relies on selling traditional games as exclusives on their console. However, with the possibility of the Switch 2, who knows if they will continue to stick to this model. The industry is constantly evolving, and whether we like it or not, it seems to be heading towards a future of multiformat releases and live service games.
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