Let's Say Next Generation, A Console Manufacturer Is Going To Get Out Of The Console Market. Who's It Going To Be?

[godslabrat]

Here's something I like to point out about MS's consoles:  please remember, the Xbox line was designed to give Microsoft a foothold into the "Living Room PC" market that was supposed to be the Next Big Thing in the early 2000s.  Microsoft spent absurd amounts of money, NOT TO MAKE A PROFIT, but to secure their piece of what was supposed to be a very lucrative future pie.

 

Except that pie never materialized.  The Living Room PC was never a popular idea, and the suggested uses for it were eventually met by mobile devices and streaming boxes.  But... The second Xbox console eventually did become a profitable, sustainable business, after taking absurd losses for the better part of a decade. In a sense, you could say Microsoft built a successful console for entirely the wrong reasons. 
 

With that in mind, it makes sense why MS is not hell-bent on continuing the endless hardware cycle.  They won't throw away the Xbox line, because it's currently making money-- they aren't stupid.  But it would be very much like MS to try and push the business model into something much more favorable to their terms.  The attempt to get away from exclusives is one example.

 

So, would MS leave the market?  I think maybe.  But, it wouldn't be because they made mistakes like Sega and Atari-- failing to get market share.  I think MS might leave if it becomes clear the Xbox can no longer fit their long-term strategy.  And in that case, I don't think the Xbox would vanish completely, more likely it would be spun off into a smaller company.