Next-gen console showdown: Sony and Microsoft face final battle, says DFC

It's getting tight in the highly competitive console market, where there will only be room for two major players in the next generation. This is the central thesis of a renowned market research company - and Nintendo has already secured its place. This means that either Sony with the PS6 or Microsoft with the Xbox Next will have to fight more than ever for the favor of gamers and thus for their existence in this segment.

Growth despite challenges

According to DFC Intelligence the games industry is facing record growth. With releases such as "GTA 6" and new hardware - especially from Nintendo - 2025 will be a turning point for the industry. After a period of decline marked by the impact of the Covid-19 pandemic, the company expects to have over 4 billion players worldwide by 2027. But this growth is not without risks.

Nintendo is predicted to be the clear winner of the next generation of consoles. DFC cites two main reasons for this: the expected earlier market launch of its new hardware and reduced competition. While Nintendo continues to expand its dominance, Sony and Microsoft will have to make strategically smart decisions to avoid being left behind.

The battle between Sony and Microsoft

DFC's analysis clearly shows that there is no room for three major console systems. One company - Sony or Microsoft - will "struggle mightily" and end up in a distant third place. The outcome of this duel depends on several factors, including price points, availability and possibly the portability of the devices.

Sony could have an advantage due to its strong brand base and exclusive games IP. However, Microsoft has also made invested massively in acquisitions and is now the world's largest software manufacturer. If Microsoft continues on its current course of focusing more strongly on software and sales models, what it currently looks likethis could provide a decisive advantage.

Big questions for the future

David Cole, CEO of DFC Intelligence, emphasizes that the industry is at a turning point. The coming years will show who will lose out in the next-generation console war. At the same time, there are new opportunities for smaller studios as the big publishers focus more on live services and long-running franchises.

According to this thesis, the games industry is facing a decisive phase. While Nintendo appears to be holding its ground unchallenged, the coming years could herald a shift in power between Sony and Microsoft. Whether the market will actually be reduced to two major console providers remains to be seen.