Michael Pachter, the well-known analyst from Wedbush Morgan, recently shared his thoughts on Microsoft Gaming’s strategy of releasing games from its studios on Nintendo and PlayStation consoles, despite initially promoting them as exclusive titles.
In a surprising move, Microsoft announced in February that Pentiment and Grounded would be available on the Nintendo Switch, PS4, and PS5, with Hi-Fi Rush and Sea of Thieves also coming to the PS5. Pachter believes that this decision reflects a shifting trend away from the traditional model of exclusivity.
According to Pachter, “Releasing exclusives on other platforms signifies a departure from the outdated model of Nintendo and Sony, who rely on exclusive games to drive sales on their own consoles. It’s a flawed approach.” He likened the strategy to a movie studio owning theaters and restricting film viewings to only those theaters, suggesting that this limits revenue potential.
Pachter predicts that Microsoft will continue to have temporary exclusives and will strategically release content on PlayStation and Nintendo platforms, while utilizing temporary exclusivity to promote Game Pass. This strategic decision, according to Pachter, is a smart move, especially when considering the financial implications of keeping popular titles like Call of Duty exclusive.
During the same discussion on the Pachter Factor, the analyst also speculated that Game Pass will evolve into a dominant force within the gaming industry over the next decade.
About the Author
