PlayStation 5 could be Sony’s last gaming console

With the strength in cloud technology, Microsoft, Amazon and Google may put an end to the PlayStation.

2020 will be an exciting year for the gaming community. The next generation of consoles with advanced technologies from Sony and Microsoft will be released. Both these giants have revealed to gamers a lot of information about PlayStation 5 (PS5) and Xbox Series X.

However, the PS5 may also make Sony “hit his back with his stick”. The Japanese giant is in danger of losing its monopoly to the Xbox Series X. That’s not to mention many competitors with other rich purses. It is not excluded that Sony will have to kill the PlayStation console line.

Sony’s wrong move for PS5

Expensive production costs

Sony recently said they are having a hard time figuring out a price for the PS5. However, the PlayStation 5 is rumored to be Sony’s most expensive gaming console ever, as it will cost $450 to produce, according to estimates from Bloomberg.

IHS Markit estimates that the PS4 – the console launched almost seven years ago – had a production cost of $381. And when it goes on sale, the PS4 costs $399. That means that Sony has absolutely nothing to gain from selling PS4 if we include other costs such as marketing. The production cost of PlayStation 5 increased by more than 18% because of more expensive components. And Sony is expected to sell its new console for $500.

This could be to a great disadvantage for Sony, and even put an end to the PlayStation. The game market is changing strongly, not just encapsulated in consoles anymore. And such a price spike could potentially kill the PS5.

Microsoft was one step ahead?

For example, Microsoft’s vision went far beyond the console market. Their Xbox Project xCloud is in beta, and it allows gamers to stream more than 50 Xbox games to play right on their Android devices over Wi-Fi or cellular. Microsoft says users can stream games directly from the cloud to handheld devices. Streaming will have no lag and the quality will still be as good as on the console. And yet, the Redmond giant will continue to add new games to the platform.

Limitations of PlayStation Now

Microsoft is still tight-lipped about the cost of the new platform, but it probably won’t be too expensive. Referring to similar products, Xbox Game Pass Ultimate costs $ 15 a month, and competing product from Sony PlayStation Now costs only $ 10 a month.

Even if the new platform costs a little more, that would still be a bargain. The reason is that anyone using xCloud won’t need to buy a console like the PS5. They only need to use smartphones to be able to play the games they like.

In contrast, a PlayStation Now user cannot do that. The service is only compatible with PS4 and PC, meaning gamers will have to make a decent investment in hardware. This will probably be the cause of the PS5’s failure. The world is moving towards cloud gaming. Microsoft has also started making changes.

The reason PlayStation 5 could be the end

The rise of cloud gaming

According to a third-party study, the cloud gaming market is expected to reach a total growth rate of nearly 25% in 2025. Therefore, it is not difficult to understand why Microsoft is looking to make gaming independent. depends on the foundation. Meanwhile, Sony is still having a headache about the price of PS5.

What’s alarming for Sony and PS5 is that Microsoft isn’t the only one in the cloud gaming game. Google plans to offer a free version of its Stadia cloud gaming service. Currently Stadia is limited by having to invest $129 to buy a Stadia controller and Chromecast Ultra, but Google is looking for a way to break that barrier.

Senior Google employee, Phil Harrison, recently said in an interview with Protocol:

The strategic difference is that in the next few months you will be able to experience Stadia completely free… No need to spend money, no need for a home box. At the touch of a button you can play great games from our datacenter.

Amazon is not out of the game either

Stadia could be another big challenger for Sony’s PS5. Not only that, but Amazon is said to be looking to join the game as well. To quote Wedbush Securities analyst Michael Pachter:

I bet Amazon will launch a game streaming service this year. It will be released before Xbox Series X and PlayStation 5.

Not surprisingly, Microsoft’s head of games, Phil Spencer, sees Amazon and Google as the main competitors rather than Sony. He told Protocol:

Speaking of Nintendo and Sony, we have the utmost respect for them. But, Amazon and Google are our main competitors going forward. Not to be rude to Nintendo and Sony, but the traditional game companies are falling behind. I guess they could try to emulate Azure, but we’ve invested tens of billions of dollars in cloud technology over the years.

The battle between Sony and the tech giants

With nearly 3.5 billion smartphone users worldwide, companies like Microsoft, Amazon, and Google have a better chance of succeeding in cloud gaming thanks to their inherent cloud infrastructure. Gamers just need to buy a good enough smartphone to be able to stream games from the cloud.

This is the factor that Sony is currently showing inferiority. Therefore, it is not excluded that the PS5 will be the final console product from the Japanese company.

According to CCN