You don't grow a market by shrinking the reasons to buy into it. Word of mouth was "buy a PlayStation to play PlayStation exclusives" which has now received the suffix of "or buy a PC and wait 18 months."
This is the nature of bean counters at the helm: they can't look upwards or forwards. But they're great at padding their own pockets.
All data, no qualia.
There hasn't been significant growth in the console industry since the PS2 era.
- PS2 (158.7 million) + Xbox (24.65 million) = 183.35 million units
- PS3 (87.4 million) + X360 (82.52 million) = 169.92 million units
- PS4 (117.16 million) + XBO (57.96 million) = 175.12 million units
Basically it's roughly the same pool of console gamers with very little turnover (some drop out of console gaming while some new blood comes into console gaming). That's a problem for an industry where costs are rising but you and your competitor are still fighting over basically the same number of console gamers since the PS2 era.
The industry was able to continue to drive profits by introducing over time things such as DLC, microtransactions, digital downloads, etc.
From PS2 -> PS3 -> PS4 we see an increasing reluctance to introduce new IP and/or smaller titles and most studios doubling down on established IP as it gets more and more difficult to make a profit.
AAA developers understand this and thus it's increasingly rare to see any AAA developer focus only on console anymore. Microsoft started to diversify back to PC because the XBO didn't do well and that generation really showed that console gaming wasn't growing.
Sony were forced to move into PC due to increasing development costs with basically ZERO* growth in the console gaming industry and most particularly the PlayStation install base. It took 3 years before the PS5 started to sell as good as the PS4. An increase in supply briefly bumped it up higher than PS4 but it is once again trailing PS4 date aligned sellthrough.
One could argue that if they had more supply at the start of the generation that it likely would have beaten PS4 when launch aligned during the first 3 years, and it probably would have. But that would have just shifted sales to be more front heavy and the slump would have started earlier than this year.
Hell, even mobile gaming has apparently plateaued. At some point you're going to reach saturation and that appears to have been during the PS2 generation and the console industry has basically been a plateau since then.
So, with rising developer costs what other avenues are available to increase revenue in order still make a good profit? DLCs have already been done. We're most of the way transitioned to digital downloads. Microtransactions have already been done. A price increase from 60 to 70 USD for games has already been done.
You're saying that an announcement that former PlayStation exclusives coming to PC 1-2 years after they launch on PlayStation is suddenly going to make people stop gaming on 500 USD consoles and run out to buy 1000+ USD PCs (more if you want to match PS5 quality levels, MUCH more if you want to exceed PS5 quality levels) in order to play those same games?
And they want to give up the simpler console experience for a more complex and potentially error prone PC experience to boot?
There is very little overlap between the PC and console space. Sure, some small number of players might be willing to wait 1-2 years
and pay significantly more for a PC
and deal with troubleshooting issues on PC in order to play the same games as they could on a 500ish USD PS5 (with less headaches on the PS5 to boot!), but it's unlikely to be more than very low single digit percentage of console gamers.
Regards,
SB
* Zero growth meaning zero increase in the number of consoles being sold each generation. Revenue has been increasing due to the introduction of DLC, Microtransactions, Digital Download and small price increases (50 to 60 USD and then 60 to 70 USD this gen) but that revenue increase is being outpaced by developer costs rising faster than revenue is rising.