The Console Wars Are Over: XBox and Sony Both Lost
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Even the cheapest gaming PC costs double a console, and if you want something good you're looking at 3x-10x the price. Then you have to upgrade every 5 years minimum.
My current gaming PC was built in 2014, it's on its second set of HDD/SSDs, second set of RAM, and 3rd video card. For the same money I spent on it over that time I could have bought 4-5 PS5s. You can't deny consoles provide value for the money. Steamdeck is a viable alt though, and if someone makes 'Steam consoles' it's over for Xbox/Sony.
Consoles are subsidised by the games. PC's can't do that so there is a much higher barrier to entry for most people. Most people I know buy consoles and then get the odd game or two on release but trade in and buy most of them second hand via places like CeX. Which is why despite the move to digital, their brick and mortar stores are still doing well compared to their main competitor, GAME. Worse still, graphics card manufacturers, under pressure to sell their latest cards which can cost three consoles, are enticing game companies to up their specifications for games to shift cards and entice people to upgrade on the case of fear of missing out, status and bragging rights.
Oddly enough, the 3DO used the same technique of unsubsidised consoles hoping that competition would naturally bring the price down. It didn't. Its price point caused the console to fail quickly compared to the PlayStation and Saturn that cost half the price.
Seems like if you made a deal with nvidia to cut them in on the sales of games per machine you could get a subsidized 'Steam Console' and then it really would be all over for Sony/Xbox.
Personally I played consoles for the Japanese games but since the dam broke on those coming to PC there's no much more reason for me to play one. However my family all prefers gaming consoles to PC.