Analyst: PlayStation is doomed, they can’t compete and don’t stand a chance

Microsoft is so far ahead that “PlayStation is doomed,” Wedbush Securities analyst Michael Pachter said in a recent Xbox podcast.


According to the analyst, Microsoft has an “insurmountable lead” in services, infrastructure and the overall ecosystem that has ensured Xbox’s future for the next 10 years. Sony, on the other hand, doesn’t have that kind of lasting power – or so Pachter thinks.

“I think PlayStation is doomed, and I think they’re going to cease to exist as we know them in about 10 years. They can’t compete. They don’t stand a chance,” Pachter said during a RDX stream.

Sony has the edge in console sales right now, but Pachter thinks the industry is moving away from dedicated hardware and more towards online, cloud and services. The argument is that Sony’s content pales in comparison to Microsoft’s, especially with the inclusion of Bethesda and soon Activision-Blizzard (Sony has a slew of studios and wholly owned properties, as well as licenses for Spider-Man, one of the most popular superheroes on the planet).

“They’ve got a massive head start now with 17 million PS5s in December, Microsoft hasn’t released a number but you know it’s 8 or less. PlayStation will go by like they stand still… not in the console sales, in number of Game Pass.

“Microsoft has 25 million Game Pass users without Activision. How many are they going to have with Activision? There’s so much content.”

“[Sony is] not a few years late. It’s an insurmountable leap.”

Analyst: PlayStation is doomed, they can't compete and have no chance 88 |

While it’s true that Sony is technically behind Microsoft when it comes to services, having only recently supported initiatives such as cross-play and cross-platform releases on PC, Sony is currently preparing its own competing Game Pass service named Spartacus which will combine PlayStation Now and PS Plus.

Sony has also bought Bungie for $3.6 billion to help bolster its lineup of live services, which will include 10 games by 2026, and to help increase the value of its upcoming Spartacus service. Let’s not forget that Sony also wants to license its properties for movies and TV shows at a faster rate than Microsoft, which made a Halo show and licensed an upcoming Fallout TV series.

Pachter goes on to liken PlayStation Now to Paramount+’s relatively meager offering, saying it’s a niche game streaming service.

“Sony will try to compete with what content? Game content, no. With Gaikai, they have a lot of patents, but the content is not there. Of course, Sony has very good first-party content, that’s like 4-5 games per year.

“Microsoft has a lot more now. When you add Bethesda and Activision…Bethesda is about as big as Sony’s first party. Activision is bigger. The catalog is huge.

“It’s really like comparing Netflix or Disney+ to Paramount Plus. They have 10 times more subscribers to Paramount+ because they have all the content.”

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