Comment Re:What am I missing? (Score 1) 25
If it ends hardware sales, what will its games run on? Existing installs only? What sense does that make?
Someone else makes the hardware, Microsoft sticks a badge on it.
Then you pay for the subscription.
MS wants out of the hardware game because it's not paying for itself any more. With Sony blinking first and raising the price of the Playstation, Microsoft sees it's out. It can get someone else to build the hardware and just reap the profit from the software sales and subscription services. That was the only thing that made the Xbox profitable, the fact that they could get publishers to pay a per instance fee for the game (and pass that on to the end user) and then get the end user to pay a monthly fee for basic things like online access. However that's not bringing in enough money to pay for the hardware any more. This generation is over and both Sony and Microsoft need it to continue for several more years to make it profitable.
So they're in a bind... but don't worry, the brands will continue because it doesn't matter what kind of abuse Sony and MS dish out, console owners will bend over and take it like they always have.