They still have a console and a platform therein. If they fully concede, it leaves a power vacuum with no one to fill it. Which would give PlayStation an ungodly amount of control over how people, including 3rd parties, use their platform.
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That's arguably happening now somewhat in the sense Sony does set norms. Mostly because gov't regulators + lawmakers who had understandable concerns about MSFT's ATVI acquisition never raise similar objections to PS' large market share and how they use it. Spencer even laid that out in court.
He literally said that's why Xbox moved to get Bethesda. He alleged PS was trying to get Starfield as a PS exclusive to bar Xbox, just as they had done w/ Deathloop.
As long as Xbox don't concede, PlayStation still have to put some modicum of effort into their own products and platform.
Xbox obviously aren't doing it out of the kindness of their hearts. They're doing this because it makes them more money. But a PlayStation monopoly is a potential side effect
Things like the reworked PS+ with PS1&2 games was largely as a result of Sony shareholders demanding the company respond to Xbox's back compat program. Same with PlayStation exclusives finding their way to PC. Shareholders wanting a response.
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"Where else are you gonna release on? Nintendo?"
Nintendo and PlayStation have difference audiences from one another. PlayStation know that.
Xbox obviously aren't doing it out of the kindness of their hearts. They're doing this because it makes them more money. But a PlayStation monopoly is a potential side effect
That's what's keeping it from being a monopoly