Another analyst has weighed in on the future of Xbox, this time via a fantastic in-depth Xbox Series X feature over at Polygon. As part of the feature, Wedbrush Securities gaming analyst Michael Pachter suggested that Microsoft and Sony's days as "gaming juggernauts are numbered," but also indicated that Microsoft is "extraordinarily well-positioned" for the future.
The main reasons for this, according to Pachter, relate to Microsoft being a provider of cloud technologies, combined with the brand appeal of Xbox:
“Google is already here, even though it’s executing badly [with Stadia]… Amazon is coming. But Microsoft has a direct relationship with the gamer. It has games like Halo. It’s also one of the biggest cloud companies in the world.”
According to Polygon, Pachter sees a lot of growth in cloud streaming (such as Project xCloud) and subscriptions, highlighting that a few hundred million people buy consoles every generation, while game streaming could potentially reach around 2.5 million gamers:
"That includes your mom who doesn’t play games, but it also includes the guys you went to high school with, who want to play Madden every now and again, but not so much that they’d buy a console. But if all they have to do is sign up for a cloud subscription, then boom.”
What are your thoughts on Pachter's comments? Let us know in the comments below.
[source polygon.com]
Comments 7
It wouldn't be a next gen without some words of wisdom from Michael Pachter 🙄
Sony and Microsoft (especially Sony), have been in this industry long enough and built up not only their brands but a user base who isn't about to abandon them for companies like Google. That's Google who, BTW, have released a disaster of a streaming service that suffers crippling lag, has exclusive games you can count on one hand, and has been ignored by publishers, developers, and gamers the world over. Its a matter of when, not if, Google kill off Stadia like they have done with everything else they dabble in (Google graveyard says it all).
Amazon also aren't in cloud gaming yet. They may come, but they aren't there now, and have no user base.
Also the coronavirus has shown how the worldwide Internet infrastructure is very shaky and not up to the level where we can have cloud gaming en masse.
This is absolutely right imo.
Whether people like it or not the potential of game streaming is huge and I think it's great that Microsoft are covering themselves for the future.
5g will change everything
( O.O)
I don't think streaming will ever make console and pc gaming obsolete but they will coexist. It's like with movies, you can stream movies via Netflix and co. but you also can buy movies digitally or physically. It's all about creating options/choices.
You have to say MS have been much more on the ball as we come to the end of the current gen and looking ahead to the next. The two key areas that have defined gaming for generations - CPU and GPU performance - clearly favours MS - although Price point could still be a factor. There communication has been far more upfront and it seems the general consensus has MS making a big comeback.
Game Pass, not that I subscribe, also seems to be something a lot of gamers are interested in and when MS gets its xCloud out to all, it could be massive for MS - a mobile solution that integrates with your home gaming set-up.
MS are offering choices to consumer - whether you want the best console, gaming on the go or prefer PC's, MS has something for you and that choice allows people to find a solution for them...
I always find it silly when so-called analysts try to cover gaming. More than half the time they sound like people who haven't actually played a game since the days of Famicom and Mega Drive.
Not a slight against MS, I hold this opinion when they talk about any of the companies.
@roe The potential may be there, but the reality of it is still a LONG way from happening. The world's infrastructure is not even close to being ready for full-on streaming of games, or any media for that matter, especially not if we're all going to be online at once and/or all the time...
If anything, the current epidemic and more people using the web now than ever already very clearly shows that, as @SuperNintendoMii has stated so very correctly in his comment.
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