I don’t think anyone is going to ‘win’ in the traditional sense, but I think both Sony and Microsoft will find success in different ways. This is the first time I feel like all the companies are in fairly healthy positions going into a new generation.
In terms of hardware sales, PlayStation 5 is most definitely going to outsell the Xbox Series S/X. The PlayStation brand is just way more recognizable and powerful globally than the Xbox Brand, particularly in across the world in places like Asia, Middle East and most of Europe. In North America, specifically the United States, it’ll be much closer between both platforms than this current cycle.
I think Sony will benefit a lot from high software sales from their first party games. It’s also likely that Xbox Game Pass is going to/has started to make Sony re-think their strategy somewhat, but what they’re doing has been successful so they’ll continue down that path for now. I don’t think Sony will make a direct Xbox Game Pass competitor, because their games actually sell 10-15 million copies, so they don’t really need to at this time. However, they’re definitely acknowledging it and the PlayStation Plus Collection is a direct response of what Microsoft is doing with Xbox Game Pass.
For Microsoft, I see them selling more hardware than this cycle in the United States, Canada, UK and Australia. Elsewhere, I don‘t see much changing, because I don’t see them gaining more ground globally. However, if we’re talking about Xbox Game Pass, I think that will continue to grow and attract a larger number of subscribers in the upcoming years. It’s hard to say if it’ll reach the number of subscribers to be a dominant force in the industry like a Netflix, so we’ll see.
As of now, I don’t think Microsoft has the high quality level of first party output to be like an HBO of streaming services — I see Xbox Game Pass as a Netflix type of service for gaming, where 80% of the content is mediocre, 10% of the content is good and 10% of the content is amazing. With the Bethesda acquisitions and their other studios starting to make games in house, we’ll see if that changes a few years down the road.
Xbox Game Pass is big value for a lot of people, but I think the number of people willing to hold multiple subscription based services is higher in North America than elsewhere in the world, so I don’t really see it growing outside of the markets I mentioned above, but they might not need to, they’ll probably be more successful this generation and health than the current one, with Xbox Game Pass alone. I’m also anticipating the price of Xbox Game Pass to go up in a few years once they get a steady number of subscribers.
Log in to comment