
The current game consoles are getting a bit long in the tooth, but signs point to late 2013 as the earliest that a replacement for either the PlayStation or Xbox consoles to come online. But then interesting something happened this past week, which could change the way that console makers think about their hardware and software service: Sony bought cloud gaming company GaiKai for $380 million.

Wedbush Securities analyst Michael Pachter believes the next Xbox console might be already dead due to Microsoft embracing Game Pass at $30.
Wouldn't it be the case of Pachter finally agreeing with parts of us rather than we agreeing with him?
I remember vividly that back in the day when GP was introduced and shaped further, many of us were saying that it's a great service on one hand. But were also already skeptical, too, as to how Microsoft would be able to keep the service running financially in the future.
Or/and how it would affect studios and game development in general.
As of March 2026, I think we have the answers some of us anticipated back then, when it was still Pachter who had forecasted «100 million subscribers».
Likely the next Xbox will have a premium price tag so they have some profit margin on the low numbers they sell. We all know that the bulk of revenue will come from 3rd party sales on other devices and perhaps some from game pass.
And even Gamepass flopped. The end goal of Gamepass was to be hegemonic, to kill game purcahses with subscriptions. But that never happened. Game sales are still thriving, Gamepass' subscriber count has stalled, it's costly for MS and studios and its price is increasing.
The purchase of Activision allows them to hide Gamepass' failure. Not suprising that gamepass was removed from Nadella yearly bonus, they knew they would never hit the targets.
I am not a Pachter fan , but I have to agree...who would have though. It used to be to sell cheaper hardware that is subsidised by First party game sales in the first few years until you can reach millions owning the console and by that time you can cheapen your hardware because the tech have been revised. With gamepass on everything and developers losing sales that option is now limited. With the onset of more options for games and developers going for Gass gambling FOMO style games and dlc consumers have become rightfully picky. Add that to growing hardware prices and escalating ram and pandering to society... it kills a brand. Most og gamers are gonna find you out and stay away. Put on the pressure of companies demanding higher revenue for sales, the poor developer has no other option to put a new coat of paint on a copy of another successful game. Innovation , what we are looking for doesn't happen a lot because the danger of failing could lead to budget cuts and them letting you go...so you play it safe and make a copy of a copy. Yes we get genres and types but 80% is the same game we have had for ages. So then because you are scared you let them put it on gamepass and you know you know at least what you get.

Nintendo announced Friday that several of its long-time partners, including DeNA, will sell off some ¥300 billion in company shares.

Digital intelligence and analytics firm Sensor Tower has released its State of Gaming 2026 report, revealing flat growth in mobile game revenue, double-digit growth for PC and console gaming, and another record year for PC, with more games sold on Steam than ever before.
With the PS3 and Gaikai at the centre of cloud gaming, I very much doubt that cloud gaming will kill Sony's next gen console. It needs to start as soon as possible though. If Sony want to offer Gaikai as a serious alternative for people with decent broadband they have to get people on board immediately. Even if it's just allowing the Vita and PS3 to stream Gaikai demos (as they already do on Facebook). It would also be a wise move for Sony to allow people to sample PS3 exclusive through Facebook too. That way more people can get an idea of what Sony has to offer. An obvious move would be to allow Vita and PS3 to stream PS1 and PS2 games (which HAS been rumoured, but still remains a rumour)
These are the steps that Sony should take immediately. when the PS4 hits, then they can start broadening the choice with PC games, PS3 games, PS4 demos and more. But like I said, Sony can't rest on their laurels with this, they HAVE to act NOW
There is an interesting debate to be had on whether this could hinder or help PC gaming, because clearly PC games will now also be available to consoles. Does that mean that people will play PC games on consoles and less on PCs, or does it mean that, because consoles can play PC games, more PC games will be made, consequently helping PC sales? It cuts both ways and it's going to be interesting to see which way the wind blows
Even Nintendo has their hands in cloud-like services (Google: IGware). Smart Phones, Androids, and tablets devices, are upgraded annually, so trying to build a handheld or gaming console so they won't seem dated in 5 years time (by console and handheld gaming standards), is pretty difficult in this day and age.
Cloud gaming will only eliminate the companies who choose to take their user base for granted.