The well-known analyst Michael Pachterof Wedbush Securities, believes that Microsoft did the absolutely right thing when deciding to port some of Xbox’s smaller exclusives to Nintendo and PlayStation consoles.
In his opinion, it makes no sense to maintain the exclusivity of games for one platform in 2024, especially given the growth in development budgets – This model is hopelessly outdated, and Microsoft was the first to realize this, while its competitors continue to “remain in the past . “
“Why did Microsoft start porting its exclusive games to other platforms? Because Sony and Nintendo’s approach of tying games to a specific system no longer made sense. It is an outdated model. Nintendo introduced it in 1985 and worked for 40 years. “Sony followed Nintendo in 1995 with the PlayStation, and Microsoft followed in 2001 with the Xbox. It worked for a long time and then it didn’t,” Pachter explained.
The Nintendo and Sony model of proprietary titles on proprietary platforms is the wrong model, it’s a broken model. It used to work for 40 years, but not anymore. pic.twitter.com/nztWf7fPL2
— Idle Sloth💙💛 (@IdleSloth84_) April 5, 2024
Pakter believes that the concept of exclusivity will not disappear completely – some games will initially only appear in one place or ecosystem. But forever locking expensive projects onto specific hardware is just stupid – you need to scale and cover your competitors’ platforms instead.
“Imagine you own a movie studio that has its own chain of theaters. You can only show your films there and you can even make money from it… But you won’t make as much as you could with a greater number of theater distribution, six or seven ways.
Microsoft will have temporary exclusives. Some content will appear on PlayStation and Nintendo, others strictly on Xbox Game Pass… this is yet to be finalized. They also promised that they would release Call of Duty on PlayStation because they are not stupid. Microsoft is well aware that exclusivity on such games would cut into its sales and make the Activision Blizzard purchase pointless.”
A few years ago, Sony began releasing its games on PCs, but not as frequently as Microsoft, and it does not intend to support consoles competing with the PlayStation. In this regard, Pachter feels that he “remains in the past with Nintendo”.
“Sony and Nintendo are stuck in the past and cling to outdated models. They are broken and no longer make sense”, emphasized the analyst.
In February, Sony fell by $10 billion after the quarterly PlayStation 5 sales report – experts were disappointed with the profit level.
2024-04-09 00:03:49
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