Michael Butcher, the famous analyst at Wedbush Morgan, commented on Microsoft Gaming's decision to release games from its studios on Nintendo and PlayStation devices, after presenting them as exclusive titles.
In February, Microsoft revealed that Pentiment and Grounded would be released on Nintendo Switch, PS4, and PS5, while Hi-Fi Rush and Sea of Thieves would also be released on PS5, something that shows Pachter how the exclusive model simply no longer works. .
“Why would they release exclusives on other platforms? The reason they're doing that is because Nintendo's model and Sony's model of owned games on proprietary platforms is the wrong model. It's a broken model.”
“Nintendo started this in 1985. It worked for 40 years. Sony copied this in 1995 with the PlayStation, Microsoft copied this in 2001 with the Xbox and it worked for a long time and then stopped working,” Pachter added in his response to a follower.
“Supporting your content by managing distribution on your platform is like a movie studio owning a chain of cinemas and the only way to see the movie is in its cinemas. Now, this will work and they will make money, but they won't make as much money as if they put the movies into six or seven other different formats.
Butcher says Microsoft will have temporary exclusives, putting some content on PlayStation and Nintendo, but will have temporary exclusives to promote Game Pass. For the analyst, this is a decision made by Microsoft because it makes sense, especially since they would never make a lot of money by making a game like Call of Duty exclusively for example.
In the same episode of the Pachter Factor, the analyst commented that Game Pass will become a mega giant within 10 years.
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