>>722989228
>This is not due to Xbox selling a lot less since people are not moving to Sony, but ditching home consoles.

Xbox is selling a lot less, but people are also not getting into consoles. I say not getting into, because I think that's where the deficit is happening. New adopters are not coming into the console ecosystem rather than people ditching consoles. I personally think the notion that console gamers are leaving consoles for PC or something else to be exaggerated. It's happening, but it's always happened to a degree. New people NOT coming into the console ecosystem is new.

In fact, all dedicated video game hardware has been in decline since the 7th generation. The Wii, PS3, 360, DS and PSP would add up to at least 450 million units. After the Wii U/3DS era, Nintendo went from supporting two hardware platforms to just one. After the Vita, Playstation dropped handhelds. Entire lines of hardware were cut during the 8th generation as smartphones and tablets started taking off. The peak of the dedicated video game device was in the late 2000s.

However, the Switch still sold 150M units and the PS5 has sold 80M units. With one hardware platform, Nintendo became more profitable than it ever did with two platforms that sold 100M units more combined than the Switch by itself. And the PS5 generation has been the most profitable gen for Sony ever. Clearly, these are still worthwhile and meaningful products for both Nintendo and Sony, even if total number of hardware units sold is trending downwards.