Microsoft and Sony Announce Partnership to Explore Cloud Gaming and Content Streaming Solutions - News

I'd say from the wording, this is more about Sony as a company using Microsoft's tech (outside of their xbox brand) to deliver content. Microsoft does storage and server tech on a way bigger scale than they do anything in gaming. I also predict that this may be yet another step in Microsoft's departure from gaming hardware as they move into gaming services.

Well here's a question, how many units does Xbox need to sell annually to stay viable? I would guess 5+ million a year. I mean that's a large audience to sell games and subscription services to. That assures AAA games can still sell millions of units on Xbox, while Xbox gaming revenue can come from Windows Store/Steam, streaming and occasional ports on competing platforms.

Hence, console sales can stay viable enough to continue while additional revenue comes from numerous other platforms.

@MrP - I don't know what their financials are, so I'd only be speculating. Lots of factors to consider I suppose: How much they're spending on R&D for that system and future systems, marketing and service upgrades, how much XBL and game sales bring into that equation and so on. They're likely not losing money, but if you look at Microsoft as of late, their strength seems to be in their tech. They're putting a lot of weight behind the xbox games on PC initiative and blending the world of xbox games with that of other platforms (Windows for sure, but also with moves like Xbox game pass for Switch). Where Microsoft (outside of gaming but also in) already has a mammoth infrastructure and network of technology for cloud computing it's easy to see them wanting to merge into the developing world of games as a service. They're primed and ready to support that and likely see a much greater return there than they do trying to match expensive hardware with competitors generation after generation.

This said, I do agree with you that it's likely not a massive number that they need to keep (especially this late in the generation) going in regards to new console sales to make the platform still viable and I feel like as much as people like to spell doom and gloom, consoles are still here to stay for a while yet (though, their core might change a bit).

I agree with much of what you say, but the era of expensive hardware has pretty much ended. Hardware is sold at little if any loss, which has certainly lowered the stakes of being in the hardware market. They boast about cutting edge tech, but its the best tech they can sell that's affordable to the masses and with little loss.

Maybe Xbox console sales stay steady next gen thanks to all the new developers, that would certainly keep the brand viable. While a new significant revenue are likely to come from pushing Xbox games on other platforms. They've actually become serious about PC support, streaming is growing and MS is already making money on other platforms. I see all of this as good for Xbox as a whole.

@MR P - Strong is the company/companies that adapts to the ever changing landscape. I believe the next coming generation might be one of, if not, the last where packing a ton of power into a box is a strategy. With what Google is prepping, with streaming getting to the point where it's not an encumbrance to deal with, I think we'll See the big players (Sony/Microsoft, Nintendo) move further into being a service provider and cheaper streaming boxes that do not need a ton of power to deliver a decent experience. Heck, look at phones rocking near exact versions of popular titles like fornight. That to me is proof that the lines are blurring about what the general public thinks about hardware specs.

I think the reason Microsoft is once again putting weight into their PC effort is that they are realizing that the future is not stuck on one piece of hardware, but is about providing an experience/platform that people want to gravitate.

Just to interrupt. Software sold on other platforms such as PC and Switch earn the Xbox devision money which helps them stay afloat and helps profits the buisness.

So lets say Minecraft sold 5m Units on Switch, all the profits made goes straight into Xbox Game Studios which pays off the R n D etc for there consoles. Software makes more money than Hardware so by increasing your avenues and audience increases your overall income which translates into clearing debts and expenses.

He's like a hipster Ghandi.

He does look like a hipster Ghandi. Nice one

This doesn't end competition. I mean we have consoles, mobile devices are closing the gap with consoles in many ways, PC is still a big market world wide and now streaming is really getting off the ground. That's just platform, there is also plenty of competition when it comes to software.