DenchDeckard
Moderated wildly
This is mistaken thinking.
Let's say the size of the PS platform is 120 million and the size of the Xbox platform is 60 million. In your mind for Sony to realize success they should hit 180 million units.
What percent of Xbox owners own a PlayStation already? Let's make up a number and say 10 million. That's 10 million that aren't simply going to buy an extra PlayStation they already own one.
Now what percentage of that 60 million might also own a PC? Let's say 15 million. Maybe these people only had an Xbox to play some games through Xbox Live with friends. That's another 15 million that Sony isn't likely to get.
Now let's also say another 10 million are fanboys and simply won't buy PlayStation under any circumstances and they'll now invest in PC, especially if Microsoft keeps their entitlements alive there and Xbox Live alive there.
That means Sony TAM gain is closer to 25 million units and that's not even including how many people just jump to Nintendo. So you're probably looking at a TAM increase of 20-35 million units with Xbox leaving the console space.
It's not nothing for sure, but the real gains for Sony probably comes from increased operating margins from not needing to market against Xbox. Fewer exclusivity deals, marketing deals. And it probably comes from Sony spending that money in other avenues such as PC storefronts and handheld gaming which will give a higher ROI than just competing with Microsoft.
What you'll see is massively higher software sales, subscriptions, and MTX/Add-on revenue.
I 100% get this and you are spitting facts. That's what I'm getting at.
Sony is doing extremely well with 0 competition they price the pro console at 800 pounds with a disk drive. This has retailers shook as the sales of the pro are not as strong as ps4 pro due to the price. This has retailers thinking in kind of ridiculous terms. They think the price of the pro is due to 0 competition. Some of that may be true but components cost a lot too.
The problem is. Retailers fear for a completely Sony dominant console space. Nintendo operates in their own hemisphere to retailers. They want and desire a strong leading competitor to Sony.
They see data of people migrating to pc and are now getting behind that, increasingly YoY.
Just keep a look out for how retailers market 50 series launch that normally wouldn't.
I can only comment for the uk, but there is going to be a significant push for PC gaming this year. Forecasts of another 15 to 20 % growth on pc gaming and more declines for consoles.
It doesn't look healthy to these large retailers.