"Sony has no competition now that Xbox has gone third party." WRONG.

LakeOf9

Member
One of the biggest arguments in favour of Xbox I hear is competition. Xbox competes with PlayStation. Even if it doesn't win, it existing at all means Sony has someone keeping them in check, helping ensure we don't get a $599 console again. We don't want Xbox to go away completely, because that would be bad for the industry, right?

I don't think so. I think people who claim Sony won't have competition if Xbox dies are, well, stupid. Allow me to explain.

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PC GAMING: First of all, PC gaming. This is probably the most direct competition Sony has, because with Steam at least, it is the same userbase that Sony targets for primary spending on gaming dollars. In the past, PC gaming has been its own silo, separate from consoles – the releases on PC had little overlap with the releases on consoles, how the games were played was very different, different genres were popular on PC versus consoles, and so, a customer for one was not necessarily a customer for the other. That has been gradually changing in the last 15 years, until this point, in 2025, PCs get all the games consoles get, with the potential for each PC version to be the best version of the game available. PCs offer full controller compatibility now (better than even consoles in most cases), and the current big hits on PC, while including bespoke PC things like Schedule 1 or REPO, also include Monster Hunter or Oblivion or Expedition 33. First party games from Microsoft and Sony themselves are published on PC. Formerly console exclusive franchises, such as Persona, Yakuza, Final Fantasy, Monster Hunter, and Dragon Quest, are now all on PC. Formerly console specific genres such as VNs and JRPGs are huge on PC (arguably more successful on PC than on console). Even markets that formerly preferred consoles and had almost no PC gaming culture, such as Japan, have started to adopt gaming on Steam en masse. Even assuming no other competition for PlayStation existed, PC gaming would be enough of a competitor that Sony wouldn't be able to arbitrarily exploit their customers with no pushback or consequence

NINTENDO: The Nintendo audience has also traditionally been siloed off from the audience that PlayStation and Xbox consoles have shared. Part of this is because Nintendo has actually gone out of its way to differentiate its platforms, eschewing traditional industry expectations and building consoles that specifically stand out from the others with unique gimmicks and features that leads to very different libraries and experiences on there. However, that differentiation has also started to break down in the last 8 years. The dawn of the Switch era has seen an increasing cross pollination of games between Nintendo, and the other console ecosystems. Third party titles that traditionally skipped Nintendo have released and found great success on Nintendo systems, from The Elder Scrolls and DOOM to Persona and Portal, from Grand Theft Auto and Assassin's Creed to The Witcher and Civilization, from Diablo and Nier to Yakuza and Red Dead Redemption. That third party support is looking to get even stronger on the Switch 2. While obviously, Nintendo hardware is weaker, meaning third party games usually run worse on Nintendo systems, the broader market obviously doesn't care – games like The Witcher 3, FIFA, Persona 5, Mortal Kombat 11, and Hogwarts Legacy all sold extraordinarily well on Switch, for example, in spite of the Switch versions being noticeably worse, to the point of feeling a whole generation behind compared to the other consoles. The Switch 2 does not have this issue. Thanks to diminishing returns on visuals and tech used for game development, aswell as the Switch 2 hardware having some modern features and design, such as DLSS, third party titles hitting the Switch 2 at the very least seem to be in the same generation of visuals as other systems. Obviously Cyberpunk 2077 or FF7 Remake won't look as good on Switch as they do on PS5 - but compared to something like The Witcher 3 or Kingdom Come Deliverance or Mortal Kombat 1, where the Nintendo version literally looked a whole generation behind, the differences here are a lot more subtle and minor – meaning that the Switch 2 potentially becomes a viable alternative to PlayStation for a lot more people. Especially in markets such as Japan, Sony absolutely cannot ignore the Switch 2, and must make decisions around it. While the enthusiast audience will probably choose PC over PlayStation if PlayStation went too far with anti consumer policies, for a large number of the broader mainstream market, the Switch 2 may be a viable alternative, enough that it creates at least some check on Sony

INDUSTRY FORCES: Here's the other thing – Sony is not an island. Sony is answerable to a lot of other entities, and that places limits on what they can do. For example, do you seriously think that Sony would be able to get away with a $1,000 console (as an example) just because Xbox does not exist? Do you think third parties will support a console that has an entry asking price of a thousand bucks, knowing that their investment is unlikely to be substantiated by a console that literally cannot sell to the bulk of the existing market? Sony will not want to do anything that disrupts the balance of factors responsible for its current success in the market. PlayStation is the de facto console platform for AAA third party games, and it is that because third parties have, over 30 years, gotten the confidence that there will always be a base of ~100 million paying customers for them to sell their games to. If Sony were to try to make a machine that disrupts the possibility of third parties reaching that audience, then said third parties will drag their feet on supporting PlayStation, which is not a scenario Sony wants or can even afford for the continued health of their products. PlayStation does not sell on the basis of first party games like Nintendo – if third parties are alienated by Sony because they build a console that alienates its market, then that PlayStation console ends up in trouble. So there are larger industry forces that are placing checks and constraints on Sony too.

NON-GAMING COMPETITION: The biggest thing is that the competition for Sony isn't just traditional games. The competition for any gaming company is, well, everything else. The currency that these companies are fighting for is the customer's time, and customers have more viable things to do with their time than ever before. If they don't want to pay $1,000 for a PS6 and The Last of Us Part 3, they not only have PC and Nintendo platforms to consider, they not only have mobile games to consider (mobile games are obviously never going to be good enough for people like us, but for the bulk of the global population, they very obviously are), they have a thousand new shows being put out every week on Netflix and other services, they have the billions of hours of content about their hobbies they can find on YouTube, they have an endless stream of inane UCG from doomscrolling TikTok and Instagram, and this is also not counting other forms of entertainment like reading, movies, working out, hobbies... people have far more things to do with their time now than ever before, and they are not beholden to buying a PlayStation if it becomes hostile towards customers. if Sony tries to release something that's too expensive or anti consumer, people can just... decide to not play games, and spend their time on a dozen other cheaper hobbies or entertainment options instead. This is not something I have made up, executives from major gaming companies (including Microsoft, Nintendo, and yes Sony) have stated this exact sentiment multiple times in the past. Sony has some wiggle room to push prices – but ultimately, the existence of all these other forces putting pressure on the size of the available audience also puts constraints and checks on Sony.

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The big argument people have traditionally used is that all these other products and options aren't true competition because they are too different.

Except... that is really stupid because differentiation is the whole point of competition. Competition is not supposed to be two identical products with minor differences selling to the same audience, competition is supposed to be multiple products selling to the same general audience, but with unique differentiations that compel those audiences to buy those other products too. Xbox isn't Sony's "only competition" because they essentially made a green X branded "PlayStation at home" product, they are the least successful of Sony's competitors because they did that. Successful competition is competition that puts pressure on Sony by offering viable alternative products with compelling enough unique selling points, whether it is PC gaming with its openness, flexibility, and immense hardware power, or Nintendo with portability, affordability, and a catalog of high selling exclusives. No one argues Netflix is not competing with HBO because the two are offering very different takes on the same concept, no one argues Pizza Hut is not competing with McDonalds because one serves pizza and one serves burgers, no one argues that movie theatres aren't competing with streaming because one needs you to go to a theatre and the other has you staying at home. Those are all competing products! Which one the customers go for comes down to which appeals most to them based on the unique differentiating factors and how they line up with what the customer is looking for – but they are all competing.

PlayStation, Nintendo, PC, mobile, and non gaming media is all directly competing. Just because they are all different enough to each be compelling on its own does not mean they are not competing, it means they are competing successfully.

Xbox can die, but the gaming market will continue to do well. There won't be stagnation and customer abuse happening just because a product that failed to compete, is no longer competing.
 
Like every company (looking at NVidia) in this position. They have themselves to compete with. Nobody can screw them over more at this stage and it's bound to happen.
 
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Xbox isn't going anywhere.

Hard to move when you are already dead.

grin-evil.gif
 
Depends. In the dedicated home console space, Xbox is the only competition PlayStation has had. In the broader gaming sense, there are obviously a lot of options. Ultimately, the competition is going to follow the types of games people want to play. Are the games that are popular on Switch or Steam as popular as the games on PS? Not necessarily. PlayStation and Xbox gamers play a lot of the exact same game and I'd say they have more commonality than any other platforms.
 
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If Sony doesn't have any competition, then logically neither does Nintendo or Valve. Yet I never see anybody raise concerns about that. In fact people celebrate Switch and Steam domination. Nobody seems to think those companies need to be kept in check or lament the lack of serious competition they face (just look at the weekly Japan sales thread if you don't believe me). For some reason it's only bad if Sony dominates.

Plus it's debatable that competition between platform holders is a net benefit for consumers. It is because of "competition" from xbox that all console players now have to pay for online for example. If MS never showed up it would still be free. And the more platforms there are, the more software fragmentation there will invariably end up being. GAF has made it clear time and time again how much it hates exclusives or timed exclusives, and that is just with three console makers. Imagine if there were ten different console platforms instead of three. Does anyone really think that would be better, just because there would be more "competition"? I'd argue increased competition among game developers is what actually matters.
 
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If Sony doesn't have any competition, then neither does Nintendo or Valve. Yet I never see anybody raise concerns about that. In fact people celebrate Switch and Steam domination.
Right? It's so stupid

It gets even stupider when people propose Microsoft will ditch consoles because that market is too dominated by Sony, and try to compete with portables and PC storefronts instead. You think PlayStation is dominant in its sector, then what the fuck are Valve and Nintendo in theirs???
 
One of the biggest arguments in favour of Xbox I hear is competition. Xbox competes with PlayStation. Even if it doesn't win, it existing at all means Sony has someone keeping them in check, helping ensure we don't get a $599 console again. We don't want Xbox to go away completely, because that would be bad for the industry, right?

I don't think so. I think people who claim Sony won't have competition if Xbox dies are, well, stupid. Allow me to explain.

--

PC GAMING: First of all, PC gaming. This is probably the most direct competition Sony has, because with Steam at least, it is the same userbase that Sony targets for primary spending on gaming dollars. In the past, PC gaming has been its own silo, separate from consoles – the releases on PC had little overlap with the releases on consoles, how the games were played was very different, different genres were popular on PC versus consoles, and so, a customer for one was not necessarily a customer for the other. That has been gradually changing in the last 15 years, until this point, in 2025, PCs get all the games consoles get, with the potential for each PC version to be the best version of the game available. PCs offer full controller compatibility now (better than even consoles in most cases), and the current big hits on PC, while including bespoke PC things like Schedule 1 or REPO, also include Monster Hunter or Oblivion or Expedition 33. First party games from Microsoft and Sony themselves are published on PC. Formerly console exclusive franchises, such as Persona, Yakuza, Final Fantasy, Monster Hunter, and Dragon Quest, are now all on PC. Formerly console specific genres such as VNs and JRPGs are huge on PC (arguably more successful on PC than on console). Even markets that formerly preferred consoles and had almost no PC gaming culture, such as Japan, have started to adopt gaming on Steam en masse. Even assuming no other competition for PlayStation existed, PC gaming would be enough of a competitor that Sony wouldn't be able to arbitrarily exploit their customers with no pushback or consequence

NINTENDO: The Nintendo audience has also traditionally been siloed off from the audience that PlayStation and Xbox consoles have shared. Part of this is because Nintendo has actually gone out of its way to differentiate its platforms, eschewing traditional industry expectations and building consoles that specifically stand out from the others with unique gimmicks and features that leads to very different libraries and experiences on there. However, that differentiation has also started to break down in the last 8 years. The dawn of the Switch era has seen an increasing cross pollination of games between Nintendo, and the other console ecosystems. Third party titles that traditionally skipped Nintendo have released and found great success on Nintendo systems, from The Elder Scrolls and DOOM to Persona and Portal, from Grand Theft Auto and Assassin's Creed to The Witcher and Civilization, from Diablo and Nier to Yakuza and Red Dead Redemption. That third party support is looking to get even stronger on the Switch 2. While obviously, Nintendo hardware is weaker, meaning third party games usually run worse on Nintendo systems, the broader market obviously doesn't care – games like The Witcher 3, FIFA, Persona 5, Mortal Kombat 11, and Hogwarts Legacy all sold extraordinarily well on Switch, for example, in spite of the Switch versions being noticeably worse, to the point of feeling a whole generation behind compared to the other consoles. The Switch 2 does not have this issue. Thanks to diminishing returns on visuals and tech used for game development, aswell as the Switch 2 hardware having some modern features and design, such as DLSS, third party titles hitting the Switch 2 at the very least seem to be in the same generation of visuals as other systems. Obviously Cyberpunk 2077 or FF7 Remake won't look as good on Switch as they do on PS5 - but compared to something like The Witcher 3 or Kingdom Come Deliverance or Mortal Kombat 1, where the Nintendo version literally looked a whole generation behind, the differences here are a lot more subtle and minor – meaning that the Switch 2 potentially becomes a viable alternative to PlayStation for a lot more people. Especially in markets such as Japan, Sony absolutely cannot ignore the Switch 2, and must make decisions around it. While the enthusiast audience will probably choose PC over PlayStation if PlayStation went too far with anti consumer policies, for a large number of the broader mainstream market, the Switch 2 may be a viable alternative, enough that it creates at least some check on Sony

INDUSTRY FORCES: Here's the other thing – Sony is not an island. Sony is answerable to a lot of other entities, and that places limits on what they can do. For example, do you seriously think that Sony would be able to get away with a $1,000 console (as an example) just because Xbox does not exist? Do you think third parties will support a console that has an entry asking price of a thousand bucks, knowing that their investment is unlikely to be substantiated by a console that literally cannot sell to the bulk of the existing market? Sony will not want to do anything that disrupts the balance of factors responsible for its current success in the market. PlayStation is the de facto console platform for AAA third party games, and it is that because third parties have, over 30 years, gotten the confidence that there will always be a base of ~100 million paying customers for them to sell their games to. If Sony were to try to make a machine that disrupts the possibility of third parties reaching that audience, then said third parties will drag their feet on supporting PlayStation, which is not a scenario Sony wants or can even afford for the continued health of their products. PlayStation does not sell on the basis of first party games like Nintendo – if third parties are alienated by Sony because they build a console that alienates its market, then that PlayStation console ends up in trouble. So there are larger industry forces that are placing checks and constraints on Sony too.

NON-GAMING COMPETITION: The biggest thing is that the competition for Sony isn't just traditional games. The competition for any gaming company is, well, everything else. The currency that these companies are fighting for is the customer's time, and customers have more viable things to do with their time than ever before. If they don't want to pay $1,000 for a PS6 and The Last of Us Part 3, they not only have PC and Nintendo platforms to consider, they not only have mobile games to consider (mobile games are obviously never going to be good enough for people like us, but for the bulk of the global population, they very obviously are), they have a thousand new shows being put out every week on Netflix and other services, they have the billions of hours of content about their hobbies they can find on YouTube, they have an endless stream of inane UCG from doomscrolling TikTok and Instagram, and this is also not counting other forms of entertainment like reading, movies, working out, hobbies... people have far more things to do with their time now than ever before, and they are not beholden to buying a PlayStation if it becomes hostile towards customers. if Sony tries to release something that's too expensive or anti consumer, people can just... decide to not play games, and spend their time on a dozen other cheaper hobbies or entertainment options instead. This is not something I have made up, executives from major gaming companies (including Microsoft, Nintendo, and yes Sony) have stated this exact sentiment multiple times in the past. Sony has some wiggle room to push prices – but ultimately, the existence of all these other forces putting pressure on the size of the available audience also puts constraints and checks on Sony.

--

The big argument people have traditionally used is that all these other products and options aren't true competition because they are too different.

Except... that is really stupid because differentiation is the whole point of competition. Competition is not supposed to be two identical products with minor differences selling to the same audience, competition is supposed to be multiple products selling to the same general audience, but with unique differentiations that compel those audiences to buy those other products too. Xbox isn't Sony's "only competition" because they essentially made a green X branded "PlayStation at home" product, they are the least successful of Sony's competitors because they did that. Successful competition is competition that puts pressure on Sony by offering viable alternative products with compelling enough unique selling points, whether it is PC gaming with its openness, flexibility, and immense hardware power, or Nintendo with portability, affordability, and a catalog of high selling exclusives. No one argues Netflix is not competing with HBO because the two are offering very different takes on the same concept, no one argues Pizza Hut is not competing with McDonalds because one serves pizza and one serves burgers, no one argues that movie theatres aren't competing with streaming because one needs you to go to a theatre and the other has you staying at home. Those are all competing products! Which one the customers go for comes down to which appeals most to them based on the unique differentiating factors and how they line up with what the customer is looking for – but they are all competing.

PlayStation, Nintendo, PC, mobile, and non gaming media is all directly competing. Just because they are all different enough to each be compelling on its own does not mean they are not competing, it means they are competing successfully.

Xbox can die, but the gaming market will continue to do well. There won't be stagnation and customer abuse happening just because a product that failed to compete, is no longer competing.
Moderating GIF
 
Probably shouldn't take the expression that they have no competition literally.

As a technical matter of course they have competition. What they don't have is competition they need to significantly worry about at the current time.
 
Probably shouldn't take the expression that they have no competition literally.

As a technical matter of course they have competition. What they don't have is competition they need to significantly worry about at the current time.
I disagree with even that amended statement, and I actually spend the bulk of my OP arguing against that sentiment.
 
Right? It's so stupid

It gets even stupider when people propose Microsoft will ditch consoles because that market is too dominated by Sony, and try to compete with portables and PC storefronts instead. You think PlayStation is dominant in its sector, then what the fuck are Valve and Nintendo in theirs???

Also dominant
 
Also dominant
They are so dominant that in the decades they have existed in their respective sectors, no one, no other entrant, no matter how big or small, has been able to successfully compete.

PC storefronts by Epic, Amazon, EA, Rockstar, Ubisoft, ActiBlizz, fucking Microsoft (multiple times!) failed to even register against Steam. Portables fielded by Atari, Sega, NEC, Sony, fucking Nokia, all failed to gain traction. At least Sony has had actual viable competition in their very specific field a few times before. When was the last (or first) time Valve was threatened by another PC storefront? When was the last time any portable actually managed to compete with Nintendo?

Why is the "no competition" argument exclusively applied to Sony, but not the others?
 
For example, do you seriously think that Sony would be able to get away with a $1,000 console (as an example) just because Xbox does not exist? Do you think third parties will support a console that has an entry asking price of a thousand bucks, knowing that their investment is unlikely to be substantiated by a console that literally cannot sell to the bulk of the existing market?
Yes.
 
PC's and consoles are two totally different markets and aren't comparable in the least. People buy consoles for convenience, ease of use, and familiarity/brand recognition. PC gamers who consistently act like console owners are going to magically switch to expensive PC gaming rigs and switch to PC gaming are living in a fantasy world and need to get back to reality. Console gamers don't wanna mess with drivers, PC parts, etc and they're never going to want to do that period.
 
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For a specific demographic who target the best graphical performance on console they do not have much competition anymore, but it's certainly true that Sony has competition across the broader gaming industry ranging from high end PCs all the way down to gatcha time wasters that run on decade old phones.
 
Xbox is still the biggest publisher right? My understanding is that they are pivoting (back) to third party (like they were in the 90s, but this time with way more studios). To me, that means they've decided to compete with the likes of Capcom, EA, T2, etc. rather than Sony and Nintendo.
 
For example, do you seriously think that Sony would be able to get away with a $1,000 console (as an example) just because Xbox does not exist? Do you think third parties will support a console that has an entry asking price of a thousand bucks, knowing that their investment is unlikely to be substantiated by a console that literally cannot sell to the bulk of the existing market?

Sony aren't going to be charging $1,000 for a console which makes this talking point meaningless. They're not freaking braindead morons who plan to sink there brand by launching an expensive ass console in a bad economy right now. You don't become a multi-billion dollar corporation by being a dumbass and doing shit that would sink one of your corporations most profitable sectors. They're going to launch a 500 to 600 dollar at most ps6 and keep it moving, and they'll use playstation plus, game 'both first and third party' and accessory sales to make up the bulk of there revenues/profits.
 
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They are so dominant that in the decades they have existed in their respective sectors, no one, no other entrant, no matter how big or small, has been able to successfully compete.

PC storefronts by Epic, Amazon, EA, Rockstar, Ubisoft, ActiBlizz, fucking Microsoft (multiple times!) failed to even register against Steam. Portables fielded by Atari, Sega, NEC, Sony, fucking Nokia, all failed to gain traction. At least Sony has had actual viable competition in their very specific field a few times before. When was the last (or first) time Valve was threatened by another PC storefront? When was the last time any portable actually managed to compete with Nintendo?

Why is the "no competition" argument exclusively applied to Sony, but not the others?

Probably because it is highly unlikely that anyone is going to try and replace Xbox and take on Sony in the console space. Meanwhile plenty of options in the PC storefront and gaming handheld are available, even if not nearly as successful as Steam or Nintendo
 
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One of the biggest arguments in favour of Xbox I hear is competition. Xbox competes with PlayStation. Even if it doesn't win, it existing at all means Sony has someone keeping them in check, helping ensure we don't get a $599 console again. We don't want Xbox to go away completely, because that would be bad for the industry, right?

I don't think so. I think people who claim Sony won't have competition if Xbox dies are, well, stupid. Allow me to explain.

--

PC GAMING: First of all, PC gaming. This is probably the most direct competition Sony has, because with Steam at least, it is the same userbase that Sony targets for primary spending on gaming dollars. In the past, PC gaming has been its own silo, separate from consoles – the releases on PC had little overlap with the releases on consoles, how the games were played was very different, different genres were popular on PC versus consoles, and so, a customer for one was not necessarily a customer for the other. That has been gradually changing in the last 15 years, until this point, in 2025, PCs get all the games consoles get, with the potential for each PC version to be the best version of the game available. PCs offer full controller compatibility now (better than even consoles in most cases), and the current big hits on PC, while including bespoke PC things like Schedule 1 or REPO, also include Monster Hunter or Oblivion or Expedition 33. First party games from Microsoft and Sony themselves are published on PC. Formerly console exclusive franchises, such as Persona, Yakuza, Final Fantasy, Monster Hunter, and Dragon Quest, are now all on PC. Formerly console specific genres such as VNs and JRPGs are huge on PC (arguably more successful on PC than on console). Even markets that formerly preferred consoles and had almost no PC gaming culture, such as Japan, have started to adopt gaming on Steam en masse. Even assuming no other competition for PlayStation existed, PC gaming would be enough of a competitor that Sony wouldn't be able to arbitrarily exploit their customers with no pushback or consequence

NINTENDO: The Nintendo audience has also traditionally been siloed off from the audience that PlayStation and Xbox consoles have shared. Part of this is because Nintendo has actually gone out of its way to differentiate its platforms, eschewing traditional industry expectations and building consoles that specifically stand out from the others with unique gimmicks and features that leads to very different libraries and experiences on there. However, that differentiation has also started to break down in the last 8 years. The dawn of the Switch era has seen an increasing cross pollination of games between Nintendo, and the other console ecosystems. Third party titles that traditionally skipped Nintendo have released and found great success on Nintendo systems, from The Elder Scrolls and DOOM to Persona and Portal, from Grand Theft Auto and Assassin's Creed to The Witcher and Civilization, from Diablo and Nier to Yakuza and Red Dead Redemption. That third party support is looking to get even stronger on the Switch 2. While obviously, Nintendo hardware is weaker, meaning third party games usually run worse on Nintendo systems, the broader market obviously doesn't care – games like The Witcher 3, FIFA, Persona 5, Mortal Kombat 11, and Hogwarts Legacy all sold extraordinarily well on Switch, for example, in spite of the Switch versions being noticeably worse, to the point of feeling a whole generation behind compared to the other consoles. The Switch 2 does not have this issue. Thanks to diminishing returns on visuals and tech used for game development, aswell as the Switch 2 hardware having some modern features and design, such as DLSS, third party titles hitting the Switch 2 at the very least seem to be in the same generation of visuals as other systems. Obviously Cyberpunk 2077 or FF7 Remake won't look as good on Switch as they do on PS5 - but compared to something like The Witcher 3 or Kingdom Come Deliverance or Mortal Kombat 1, where the Nintendo version literally looked a whole generation behind, the differences here are a lot more subtle and minor – meaning that the Switch 2 potentially becomes a viable alternative to PlayStation for a lot more people. Especially in markets such as Japan, Sony absolutely cannot ignore the Switch 2, and must make decisions around it. While the enthusiast audience will probably choose PC over PlayStation if PlayStation went too far with anti consumer policies, for a large number of the broader mainstream market, the Switch 2 may be a viable alternative, enough that it creates at least some check on Sony

INDUSTRY FORCES: Here's the other thing – Sony is not an island. Sony is answerable to a lot of other entities, and that places limits on what they can do. For example, do you seriously think that Sony would be able to get away with a $1,000 console (as an example) just because Xbox does not exist? Do you think third parties will support a console that has an entry asking price of a thousand bucks, knowing that their investment is unlikely to be substantiated by a console that literally cannot sell to the bulk of the existing market? Sony will not want to do anything that disrupts the balance of factors responsible for its current success in the market. PlayStation is the de facto console platform for AAA third party games, and it is that because third parties have, over 30 years, gotten the confidence that there will always be a base of ~100 million paying customers for them to sell their games to. If Sony were to try to make a machine that disrupts the possibility of third parties reaching that audience, then said third parties will drag their feet on supporting PlayStation, which is not a scenario Sony wants or can even afford for the continued health of their products. PlayStation does not sell on the basis of first party games like Nintendo – if third parties are alienated by Sony because they build a console that alienates its market, then that PlayStation console ends up in trouble. So there are larger industry forces that are placing checks and constraints on Sony too.

NON-GAMING COMPETITION: The biggest thing is that the competition for Sony isn't just traditional games. The competition for any gaming company is, well, everything else. The currency that these companies are fighting for is the customer's time, and customers have more viable things to do with their time than ever before. If they don't want to pay $1,000 for a PS6 and The Last of Us Part 3, they not only have PC and Nintendo platforms to consider, they not only have mobile games to consider (mobile games are obviously never going to be good enough for people like us, but for the bulk of the global population, they very obviously are), they have a thousand new shows being put out every week on Netflix and other services, they have the billions of hours of content about their hobbies they can find on YouTube, they have an endless stream of inane UCG from doomscrolling TikTok and Instagram, and this is also not counting other forms of entertainment like reading, movies, working out, hobbies... people have far more things to do with their time now than ever before, and they are not beholden to buying a PlayStation if it becomes hostile towards customers. if Sony tries to release something that's too expensive or anti consumer, people can just... decide to not play games, and spend their time on a dozen other cheaper hobbies or entertainment options instead. This is not something I have made up, executives from major gaming companies (including Microsoft, Nintendo, and yes Sony) have stated this exact sentiment multiple times in the past. Sony has some wiggle room to push prices – but ultimately, the existence of all these other forces putting pressure on the size of the available audience also puts constraints and checks on Sony.

--

The big argument people have traditionally used is that all these other products and options aren't true competition because they are too different.

Except... that is really stupid because differentiation is the whole point of competition. Competition is not supposed to be two identical products with minor differences selling to the same audience, competition is supposed to be multiple products selling to the same general audience, but with unique differentiations that compel those audiences to buy those other products too. Xbox isn't Sony's "only competition" because they essentially made a green X branded "PlayStation at home" product, they are the least successful of Sony's competitors because they did that. Successful competition is competition that puts pressure on Sony by offering viable alternative products with compelling enough unique selling points, whether it is PC gaming with its openness, flexibility, and immense hardware power, or Nintendo with portability, affordability, and a catalog of high selling exclusives. No one argues Netflix is not competing with HBO because the two are offering very different takes on the same concept, no one argues Pizza Hut is not competing with McDonalds because one serves pizza and one serves burgers, no one argues that movie theatres aren't competing with streaming because one needs you to go to a theatre and the other has you staying at home. Those are all competing products! Which one the customers go for comes down to which appeals most to them based on the unique differentiating factors and how they line up with what the customer is looking for – but they are all competing.

PlayStation, Nintendo, PC, mobile, and non gaming media is all directly competing. Just because they are all different enough to each be compelling on its own does not mean they are not competing, it means they are competing successfully.

Xbox can die, but the gaming market will continue to do well. There won't be stagnation and customer abuse happening just because a product that failed to compete, is no longer competing.
Magic Read GIF
 
Of course they have completion. I'm about to go to football training for the next 2 hours I'd be spending on ps5 otherwise. My football club is competing with PS5 here.

In reality they'll have no primary competitors just secondary. It's still enough to keep them on their toes but profits will no doubt rise.
 
Probably because it is highly unlikely that anyone is going to try and replace Xbox and take on Sony in the console space. Meanwhile plenty of options in the PC storefront and gaming handheld are available, even if not nearly as successful as Steam or Nintendo
I suppose it depends. If a Steam Deck or a ROG Ally is a competitor to Switch (as an example), then I see no reason that a prebuilt PC with Big Picture Mode is not a competitor to PS5; the analogy is exact.

Yes, there is no one else who makes the very specific and exact product with the exact and specific targeted demographic that Sony does, I accept that. But I don't think that's a lack of competition, I think that's evidence of competition existing. Competition involves differentiation, that so many alternate products in the same market are available, each offering their own pros to compel customer purchases, to me means Sony has enough competition that it will never go unchecked.
 
It's true though Sony doesn't have competition, probably not since the 360 days, that's why they get away with the ridiculous price of the PS5 Pro, because they can charge what they want, and know they don't have to be competitive in the price market space because of the lack of competition...the gaming landscape is a lot less varied now than many decades ago....no one akin to the likes of Sega and 3DO are in the competitive pool anymore when it comes to a dedicated console that could give the PlayStation a run for its money...
 
I asked ChatGPT to do it and it was actually surprisingly good lol. If adamsapple doesn't oblige, and/or if you want to see the GPT summary, let me know and I will share it
Share it please.
I'm not reading that wall of text, I have chores to do!
 
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Summary by ChatGPT :

The post argues that Xbox isn't essential to keep PlayStation in check because PlayStation already faces strong, diverse competition from PC gaming, Nintendo, third-party publishers, and even non-gaming entertainment like streaming and social media. The idea that competition must come from an identical product is flawed; real competition comes from different, viable alternatives appealing to the same audience. Even if Xbox disappears, the gaming market won't stagnate — other forces will continue to pressure Sony and offer consumers choice.
 
Of course there is competition in the gaming sector, but while Pc and Nintendo have their own territory, Xbox and PlayStation share the same. If Xbox is completely gone, Sony dominates that territory at a 100%. Pc or Nintendo is no alternative for many, so they have to stick with Sony if they want a high end home console. While some may disagree i'm pretty sure that's not a good thing when it comes to effort, prices and customer service.
 
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Share it please.
I'm not reading that wall of text, I have chores to do!
Just sharing the final high level summary:

Even if Xbox "dies", Sony will still face strong competition from:

  • PC (flexibility, performance, huge game library)
  • Nintendo (unique experiences, growing third-party support)
  • Industry pressures (third-party developer demands)
  • Non-gaming media (competing for consumer time)
So the idea that Xbox must survive to prevent Sony from becoming greedy or complacent is unfounded. The gaming market is diverse and healthy enough that other forces will keep Sony in check.

I'll also share this, since it is key to my bigger argument:

Misunderstanding Competition

  • The idea that only similar products can be competitors is wrong.
  • Competition is about offering alternative value to the same audience, not being identical.
    • Just like Pizza Hut competes with McDonald's (despite serving different food), Nintendo, PC, mobile, and streaming all compete with PlayStation.
  • Xbox's problem is that it tried to be too similar to PlayStation without offering unique value — and that's why it failed to compete effectively.

Lastly, here's a table it made!


CompetitorStrengths / Competitive PressureType of Threat to PlayStationNotes
PC Gaming- Best performance & visuals - Flexible hardware & mods - Controller support - Same games as PlayStation (and more)Direct competitor for enthusiast gamersIncreasing overlap with PlayStation's audience; even Sony puts its own games on PC.
Nintendo (Switch/2)- Portability - Strong 1st party exclusives - Growing 3rd party library - AffordableMainstream/alternative competitorNot always technically equal, but good enough for many users — especially in markets like Japan.
Mobile Gaming- Ubiquitous & cheap - Huge install base - Games are free or low-cost - "Good enough" quality for most playersMass market / time & money competitorDominates globally; people may never even consider buying a console if mobile is satisfying.
Industry Forces (3rd Parties)- Need wide market access - Won't support overpriced or niche consolesInternal industry check on Sony's strategyIf Sony makes anti-consumer moves (like pricing too high), 3rd party support can shrink.
Non-Gaming Entertainment- Streaming (Netflix, YouTube, TikTok) - Social media - Hobbies, fitness, etc.Attention/time competitorPeople have many other ways to spend their free time — they don't need to game at all.
 
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I have no time for them but it would make things interesting from a competitive point of view if Apple made a genuine attempt to enter the home console market. They've got the fanbase, brand awareness and clearly have the cash to throw money around for exclusivity deals or publisher buyouts.

The Xbox is clearly a busted flush, Nintendo plays by its own rules so a Playstation 6 vs the Apple iPlay ( thanks chatGPT) standoff in a few years would be intruigung to watch from the sidelines
 
Just sharing the final high level summary:



I'll also share this, since it is key to my bigger argument:



Lastly, here's a table it made!


CompetitorStrengths / Competitive PressureType of Threat to PlayStationNotes
PC Gaming- Best performance & visuals - Flexible hardware & mods - Controller support - Same games as PlayStation (and more)Direct competitor for enthusiast gamersIncreasing overlap with PlayStation's audience; even Sony puts its own games on PC.
Nintendo (Switch/2)- Portability - Strong 1st party exclusives - Growing 3rd party library - AffordableMainstream/alternative competitorNot always technically equal, but good enough for many users — especially in markets like Japan.
Mobile Gaming- Ubiquitous & cheap - Huge install base - Games are free or low-cost - "Good enough" quality for most playersMass market / time & money competitorDominates globally; people may never even consider buying a console if mobile is satisfying.
Industry Forces (3rd Parties)- Need wide market access - Won't support overpriced or niche consolesInternal industry check on Sony's strategyIf Sony makes anti-consumer moves (like pricing too high), 3rd party support can shrink.
Non-Gaming Entertainment- Streaming (Netflix, YouTube, TikTok) - Social media - Hobbies, fitness, etc.Attention/time competitorPeople have many other ways to spend their free time — they don't need to game at all.
What a bizarre thing to think about, if there is competition or not...
Sony studios now release a single game per gen and 95% of their studios just release the same emotional walking simulator but with a different skin and setting.
Even if they were the only console manufacturer, they would be totally dependent on other publishers to survive.
 
Probably because it is highly unlikely that anyone is going to try and replace Xbox and take on Sony in the console space.

I bet you DeAndre Way's gonna try! I think what you mean to say is that it will be unlikely that anyone will succeed in replacing Xbox. I believe it's highly unlikely that no one will try. :messenger_beaming: Especially considering how easy it may be to get Microsoft on board as a publisher. They're trying to get their stuff on every platform possible afterall.

Edit: Ya never know. Dude claims to be a gamer.
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Microsoft has mindsets, I think after failures like zune, Kinect, games for windows, you can see them adding to that list. The Xbox streaming cloud service has a different element, I love it.
 
Even if it doesn't win, it existing at all means Sony has someone keeping them in check, helping ensure we don't get a $599 console again. We don't want Xbox to go away completely
Correct. And it's not going away, as much as some particular people would like it too.
 
Dead ass, if Microsoft announced they were done making consoles, you'd see startups launching Kickstarters overnight trying to fill the gap. Big players like Amazon, Google, and maybe even Apple would start exploring it again. It's a multi-billion dollar industry, there's always room for growth if it's done right.


That said, I doubt Microsoft will drop out. That would be a huge surprise to me.
 
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