While I understand your concerns about Sony's market position and the need for them to expand into other platforms, I disagree with the notion that their focus on consoles will diminish and that they cannot continue to compete effectively in the video game market.
Firstly, it is important to recognize that Sony has a strong, loyal customer base in the console gaming market. They have a solid track record of producing high-quality consoles and games, and their PlayStation brand is synonymous with gaming excellence. Sony has a competitive edge in terms of their exclusive IPs and partnerships with developers. These factors contribute to their continued relevance in the console gaming market.
Secondly, while the home console market may be worth only $20 billion, it is a growing market, and it is still a significant portion of the overall video game market. It is unlikely that Sony would abandon such a profitable segment. Instead, they may choose to diversify their business and enter new markets without abandoning their core console gaming focus.
Moreover, Sony's recent foray into the PC market and potential expansion into mobile gaming do not necessarily indicate a shift away from console gaming. Rather, they are likely exploring additional revenue streams and tapping into new markets, which can help support and bolster their console gaming business.
Furthermore, while it is true that Sony's market cap is smaller than that of some of their competitors, it is important to remember that not all of these companies are fully focused on the video game industry. In fact, many have diversified businesses, and their market caps are reflective of their overall operations, not just their gaming divisions. Thus, it is not entirely accurate to compare Sony's market cap directly with these other companies when discussing the video game industry.
Lastly, while it is possible that Sony will need to make major investments to keep pace with larger competitors, it is also essential to recognize the value of organic growth and strategic partnerships. Acquiring big companies like T2 or Epic might bring short-term gains, but it might also lead to integration challenges, potential antitrust scrutiny, and other issues. Focusing on developing strong relationships with smaller developers and publishers could prove to be a more sustainable growth strategy in the long run.
In conclusion, while it is crucial for Sony to adapt to the changing landscape of the video game industry, I believe they will continue to maintain their focus on console gaming and can successfully compete against their larger rivals. It is essential for them to explore new markets and diversify their business, but this should not come at the expense of their core console gaming operations.