That's not quite how this works tho. Microsoft doesn't make games. Sony doesn't make games. The only exception is Nintendo but even they outsource a ton of devopment to studios like 1-up studios, monolith soft, retro studios etc. These companies just make a console that plays games and then they try to buy rights to good games or studios so they can make their games exclusive to that console to bolster sales. Sure, sony and microsoft could pour tons and tons and tons of money into creating their own studios i guess that make their own branded games but they have decided to focus on hardware sales instead. This is especially true for microsoft where the xbox is just a small part of the business where the PC market is their focus.
From a business standpoint, it makes 10000% more sense to just try and acquire other businesses that do the work under you and you just publish their games. Which is why nintendo, sony, and microsoft all try to do it so much. I mean Sony alone has bought 14 development studios since last year.
Both MS and Sony absolutely produce their own games with wholly internally established studios. MS game studios existed before Xbox even.
I'm not sure what the rest of your point is even about, of course it makes sense for MS and Sony to short circuit work and risk, that doesn't make anything better for consumers. The better option for consumers is for MS and Sony to build their own franchises and have good exclusives that way rather than taking existing third party franchises and limiting access.
There's a third way here though, MS could make good exclusive games themselves and leave Activision available for everyone.
That's not quite how this works tho. Microsoft doesn't make games. Sony doesn't make games. The only exception is Nintendo but even they outsource a ton of devopment to studios like 1-up studios, monolith soft, retro studios etc. These companies just make a console that plays games and then they try to buy rights to good games or studios so they can make their games exclusive to that console to bolster sales. Sure, sony and microsoft could pour tons and tons and tons of money into creating their own studios i guess that make their own branded games but they have decided to focus on hardware sales instead. This is especially true for microsoft where the xbox is just a small part of the business where the PC market is their focus.
From a business standpoint, it makes 10000% more sense to just try and acquire other businesses that do the work under you and you just publish their games. Which is why nintendo, sony, and microsoft all try to do it so much. I mean Sony alone has bought 14 development studios since last year.
Both MS and Sony absolutely produce their own games with wholly internally established studios. MS game studios existed before Xbox even.
I'm not sure what the rest of your point is even about, of course it makes sense for MS and Sony to short circuit work and risk, that doesn't make anything better for consumers. The better option for consumers is for MS and Sony to build their own franchises and have good exclusives that way rather than taking existing third party franchises and limiting access.