Source: Aftermath
PlayStation's shift away from physical media and Xbox's pivot toward subscription services reflect a move away from hardware-centric business models. Console prices are rising rather than falling despite generational advances, making the old math of selling loss-leader hardware to capture software sales unworkable. This forces manufacturers to question whether owning the box matters when they can reach players across phones, PCs, and streaming devices. Power in gaming is shifting from manufacturers to whoever controls the distribution layer. The console as a distinct product category is becoming less central to the industry's structure.