Is Microsoft Losing the Console War – Or Is It Already Over?

Hello folks,
Today we’ll be looking at one of the more interesting developments in the ongoing console wars. We all know the history—Nintendo was the king before it all began, and then came Sega and others. But the real competitor who truly disrupted the gaming space and made Nintendo sweat was none other than Sony with its PlayStation 1.

It was an amazing piece of hardware for its time, especially compared to Nintendo’s SNES, which had most of its games in 2D. I especially remember my first console: the PlayStation 2—another legendary console that went on to become the best-selling console of all time, setting a record that is yet to be broken.

Alongside the PS2 came another icon: the first-ever Xbox. Everything about the original Xbox was iconic, from its launch with The Rock to the Halo LAN parties. If you look at why the PS2 succeeded over Nintendo, it came down to its focus on a broader, older audience while also offering more computing power. This shift made Nintendo pivot toward its modern identity—starting with the Wii—focusing more on user experience rather than cutting-edge graphics.

So, what exactly did Microsoft do differently compared to the PS2 and the GameCube/Wii? Microsoft leaned heavily into the social and multiplayer aspects of gaming, rather than just story-based single-player titles like on the PS2, or the family-friendly fun of Nintendo. That’s not to say Sony and Nintendo didn’t have multiplayer games—but Xbox focused on it and made it much more intuitive. The Xbox 360 took it even further, making multiplayer gaming more robust. Who doesn’t remember the good old Call of Duty days with your friends online and a can of Mountain Dew in hand?

Now, the question is: why, with such a strong legacy, is Xbox seemingly on the decline?

A recent sign of this shift is Microsoft’s announcement that it will be publishing Xbox-exclusive games on the PS5. I’m not saying Sony fans shouldn’t get to experience these amazing titles—it’s just that this, as a whole, isn’t great for the gaming community. Right now, there's almost no compelling reason to buy an Xbox console—other than Game Pass, which, as of now, isn’t available on Sony consoles. But the way things are going, I wouldn’t be surprised if even Game Pass shows up on PS5 eventually.

So why is that a bad thing? The answer: competition.
If Microsoft stops manufacturing consoles and focuses only on Game Pass for PC and PS5, Sony essentially gets a monopoly in the console space—and monopolies are rarely good for consumers. Just look at Nintendo: no one else targets their specific audience, and as a result, they charge ridiculous prices for their games. For example, on the upcoming Switch 2, a digital game might cost $80, while the physical version could cost $90—and mind you, Nintendo games rarely go on sale. You're basically guaranteed to pay full price.

Sony and Xbox were competing for the same core demographic—somewhat mature audiences, not too young or too old like Nintendo's. So if Xbox exits the console race, Sony can do whatever it wants: charge whatever it wants, hold back on innovation, and no longer feel the pressure to outdo Xbox.

In my opinion, the perfect harmony in the gaming ecosystem exists on PC. You’ve got a ton of storefronts—Xbox/Microsoft Store, Steam, Epic Games, Ubisoft Connect, Battle.net, EA App, GOG, and so on. Thanks to this competition, each storefront does something different to win loyalty. Epic gives free games, Steam offers great customer support and discounts, and the Xbox app delivers Game Pass at a reasonable price. If only one of them existed, they could act however they wanted—ignoring issues like account losses or charging absurd prices.

So, in conclusion, yes—it’s a bit sad to see Microsoft slowly pull out of the console race. I sincerely hope I’m proven wrong.