The gaming industry lives by trends and recurring cycles, and now it's fashionable again for handheld consoles. According to many sources, Sony will return to this market and Microsoft and ASUS have developed an Xbox-branded device. But is this really a good idea? Gamesindustry.biz portal speakwhy mobile consoles can be a risky proposition for big companies.
Amid news of the upcoming wave of handheld consoles, there have been rumors, though not confirmed, that Microsoft is developing an internal device under the Xbox brand. But the company had to abandon this plan because it could not afford to buy chips in the quantity that AMD required.
Given the market enthusiasm and commercial success of the Switch 2, which is selling even faster than its hugely popular predecessor, Microsoft's refusal to produce its own device seems strange. It could be interpreted as an internal vote of no confidence in the Xbox platform as a whole; If laptops are doing so well, why does Microsoft think they can't sell the 10 million copies that AMD wants?
In fact, even if Microsoft's console business experiences explosive growth, competition in the console market will pose a serious challenge for the company.
No one knows what the status of negotiations between Microsoft and AMD is, only that negotiations are still ongoing, as the partnership is key to Microsoft's prospects for developing new platforms. Likewise, no one knows whether AMD actually requested to buy batches of at least 10 million chips. Only one fact can be firmly noted – such a figure is very high for any company, regardless of the market situation.
The only exception to this rule is Nintendo, which has developed its economic model around the mobile market for almost 40 years. For any other company, the handheld gaming segment is at best a minefield and at worst a graveyard.
For example, take the PlayStation Vita: Sony's second product on the market after the success of the PlayStation Portable. Of course, the company has made some mistakes, but overall the consensus about the device is positive. The Vita is considered an excellent gaming console – powerful, stylish, with a good screen. But it only reached 14 million copies before being discontinued, at a time when Sony's gaming division was at the peak of its power.
The Vita may be remembered fondly today, but its modest sales figures were only slightly better than those of the disastrous Wii U. The PSP sold more than 75 million copies by the end of its existence, but that didn't help Sony create a handheld console powerful enough – nor the PS4's excellent performance. It took the company two generations of Nintendo devices to find the courage to return to this niche market. And it's hard to say whether Sony is serious this time or not.
Microsoft's flirtation with the mobile gaming PC market is also notable because the level of activity in this area appears to be inconsistent with sales and consumer interest. ASUS and other manufacturers have launched many products to compete with the Steam Deck, but the amount of media noise they create is not commensurate with the number of people buying these new products.
In fact, even the platform that inspired the new laptop boom can't claim to be a revolutionary commercial success. The Steam Deck is a great device for a relatively narrow group of enthusiasts. Valve was simply able to carve out a unique niche where success didn't require selling hardware in the millions. Additionally, if rumors are to be believed, the initial Steam Deck models are built on redesigned APUs originally intended for the Magic Leap AR glasses. Reusing existing hardware may have helped Valve avoid a $10 million purchase.
In other words, if you look at the situation soberly, you'll notice that in reality, no manufacturer sells tens of millions of handheld consoles (unless it's called a Switch). The Steam Deck is a niche product, the PlayStation Vita barely outsells the Wii U, and Sony's future plans are unknown.
However, if interest in mobile gaming is still genuine, it is yet to be said who, other than Nintendo, will take the market leadership position. For Microsoft, whose strategy revolves around access to Game Pass, working with partners to develop a mobile gaming PC seems like a logical move. Developing an exclusive mobile device under the Xbox brand and even being obliged to sell at least 10 million copies would be crazy.
