Michael Pachter, an analyst at Wedbush Securities, said in a recent Xbox podcast that Microsoft is dramatically ahead of “the PlayStation doomed.”
PlayStation’s ruined, it can’t compete, and it doesn’t stand a chance.
Microsoft has “insurmountable leadership” in services, infrastructure and the overall ecosystem that prepares Xbox for the future for the next 10 years, according to the analyst. Sony, on the other hand, does not have such lasting power.
“I think the PlayStation is doomed, and in about 10 years, as far as we know, they’re going to lose their assets,” Pachter said during a broadcast. They can’t compete. They don’t stand a chance.”
Sony currently has a positive side in console sales, but Pachter believes the industry is moving from private hardware and more to online, cloud and services. Compared to Microsoft’s, Sony’s content is extremely inadequate, especially with the addition of catalogs from Bethesda and the soon-to-be-joined Activision-Blizzard.
Sony said it had sold 17 million PS5s as of December. Microsoft hasn’t released a number, but we think it’s 8 million or less. However, the point is that the main gain on the console is not sales, but content. Microsoft’s promotions with Game Pass are a sure sign that it will be even more than a very powerful platform in the coming period.
Microsoft also has 25 million Game Pass users without Activision. With Activision, millions more will be added to that figure.
While it is true that Sony is behind Microsoft in terms of services and has only recently supported initiatives such as cross-game and cross-platform versions, it is currently working to offer a rival platform with its own Game Pass codenamed Spartacus, which will combine PlayStation Now and PS Plus. It also acquired Bungie for $3.6 billion to support the live services line-up and increase the value of its upcoming Spartacus service by 2026. It’s also important to remember that Sony has been working on movies and TV shows, leaving Microsoft behind.
Analyst Pachter likens PlayStation Now to Paramount+, identifying it with its inadequate content, saying it’s a niche game streaming service, adding “What content will Sony try to compete with? Game content, no. They have a lot of patents with Gaikai, but the content is not there. Sure, Sony has really great first-party content, but it’s like 4-5 games. Microsoft has so much more now. Especially when you add Bethesda and Activision… Bethesda alone is as big as Sony’s first party. Activision is even bigger,” he said.
