Honestly, unless the XSeX is far more successful than the X1, I could see it being Microsoft's last console release. I think they realize it as well and that's why they are focusing more on Games as a Service and having almost everything on PC as well. They are making the move over a couple generations instead of having to react.
I understand Microsoft's path as the exact opposite: they're purposely moving toward a market without consoles. Simply put, there's more money in that kind of business model with the reach they'll be able to have. I can easily envision the Xbox Series X being Microsoft's final console, with subsequent generations being entirely digital across a wide spectrum of devices that consumers already own (PC, smart phone) instead of a dedicated device for playing games. However, this future is one that Microsoft themselves are actively working toward.
You're right in that Microsoft is moving ahead now instead of reacting. And this is the problem that Sony will be facing in the upcoming years. While the market moves toward being more and more digital, and, in turn, less reliant on consoles, Microsoft is going to have a huge advantage over Sony when they're the ones having to playing catch-up. Sure, Sony can sell more console units today, but the impact that Microsoft products such as Game Pass have shouldn't be overlooked. Game Pass already has 10 million subscribers alongside the 90 million Xbox Gold subscribers. Compare this to Sony's 42 million PlayStation subscribers. While people may believe that Microsoft is losing to Sony due to unit sales, it really isn't something to even compare. They're focusing on two completely different markets now.
And yes, I am fully saying this as someone who does not game on Xbox but instead PlayStation.
That might be the future but in the present day microsoft is kissing sony's feet for every game disc that they sell.
Sweet sweet royalties for blue ray to sony.
Also your ignoring game sales, both digital and physical. sony wins in that department by allot.
brand new game sales especially during release is where the money is at, those subscriptions are just a nice bonus. your overestimating this source of income. it's nice but at the end of the day it's for the older stuff that isn't at that sweet spot revenue like for new games. Can we btw not forget how ps4 has an insane amount of exclusives compared to microsoft including big triple AAA titles.. ps4 winning winning this war hard it's not even a competition.
Let's take GTA V for example
20 million copies sold on sony's ps4 red dead redemption 2 14 million
just 9 Million on xbox one red dead redemption 2 just 5.7 Million
Game sales is where it's at the stuff on release, subscriptions are just a method to earn money on older games past their release date, wich aren't that profitable anymore. and let's not forget those sweet royalties that microsft has to pay to sony while they earn money
https://en.wikipedia.org/wiki/List_of_best-selling_PlayStation_4_video_gameshttps://en.wikipedia.org/wiki/List_of_best-selling_Xbox_One_video_gamesAlso let's not forget current era is all about dlc and micro transactions. DLC alone is usually over 30$ per game, considering how sony has more than double the game sales for most games they have way more people spending good money on those.
What is gamepass compared to that.