The next generation is the problem. With the component pricing being stupid up they’re having to put off releasing the new consoles. They’re raising the prices on existing hardware just to match the component crunch, so they’re not getting the mid-late generation bump of people buying the hardware once it’s come down in price, and the people willing to buy new hardware an a high price already bought this generation’s comsole.
Xbox bled money buying studios for gamepass, then failed to get casual people subscribed to gamepass, but the hardware people who bought new $70 games a couple times a month started spending way less money on Xbox due to Gamepass because of all the day 1 releases. And the Series S held back everything by being wildly underpowered.
Meanwhile Sony burned billions betting on live service failures back to back to back (Microsoft did this too, but to a lesser degree).
And now their “new console generation” parachute/reset is fucked due to hardware costs. They know they can’t make an even halfway decent “next-gen” console under $1000, so now they’ve burned mountains of money and don’t really have a plan going forward. And now they’re amputating limbs to create the illusion of cost-cutting.
The next generation is the problem. With the component pricing being stupid up they’re having to put off releasing the new consoles. They’re raising the prices on existing hardware just to match the component crunch, so they’re not getting the mid-late generation bump of people buying the hardware once it’s come down in price, and the people willing to buy new hardware an a high price already bought this generation’s comsole.
Xbox bled money buying studios for gamepass, then failed to get casual people subscribed to gamepass, but the hardware people who bought new $70 games a couple times a month started spending way less money on Xbox due to Gamepass because of all the day 1 releases. And the Series S held back everything by being wildly underpowered.
Meanwhile Sony burned billions betting on live service failures back to back to back (Microsoft did this too, but to a lesser degree).
And now their “new console generation” parachute/reset is fucked due to hardware costs. They know they can’t make an even halfway decent “next-gen” console under $1000, so now they’ve burned mountains of money and don’t really have a plan going forward. And now they’re amputating limbs to create the illusion of cost-cutting.