It's just not growing fast enough, but I do think Phil was pretty transparent about these problems being industry wide. Sony will run into the same thing. May take another 10 years, but it'll happen. Consoles aren't growing. This is why I'm not running to PS5 instead, despite already having one. They both will eventually end up at the same place. They will be apps for a storefront and streaming service on all devices. I'm totally fine with that. This is why my only demand was guarantees that their storefront purchases will be portable, because that's where everything is going.
You see my thing is that I don't actually agree with that whole consoles aren't growing thing. Not because its not true, but because its being used as an excuse to justify their failures. The thing is that the console market has kinda remained the same for almost 3+ decades. Each gen usually averages around 250-270M in sales. Sony usually gets their 100-120M, Nintendo usually gets their 100-120M and MS usually gets its 40-50M.
The very unique nature of the console market is such that those averages remain kinda the same across generations. Sony is not dependent on their software sales on the PC for their flagship AAA games which can be comfortably supported to success just on their console. They look at PC as an added revenue stream, one that there is no reason to ignore, especially with how they deal with releases on the platform, in such a way that it wouldn't hinder the growth of their primary platform.
The same cannot be said for Xbox. Xbox is in the position they are in now because it has simply spent more money than its platform can recoup on its own. They have unsustainably invested so much that now, they actually need to explore other means of growth, even if that means putting their games on the PS5. I don't have a problem with that, but that is as clear an admission of failure or a long series of bad decisions as there can be. They first tred with teh PC, using that as a way to accelerate the growth of their overall platform. That still didnt work too well for them. And now they are trying to add PlayStation to that too.
A good way to look at this, is that Sony can invest $10B/year in PlayStation. And make $20B/y in revenue back. That is sustainability. They can explore the PC, but that is not taking them up from $20B to $25B, at best it adds another $1B in revenue. Ms simply cannot say the same. I said it during the acquisition saga, that people seem not to notice that MS, in 18 months, is spending more money than Playstation and Nintendo combined make from total profits in 4-5 years. For the most part it was ignored. But this is what that kinda decision looks like, this is what that translates to.
Think about that, the benchmark by whcih MS now has to measure growth, is on a completely different scale. Is something that the odd 25M Xbox console owners and 30M dd GP subscribers, simply cannot support, especially considering that game development is a constant ongoing investment.
I think it would be remiss to in any shape or form, be comparing what sony does or has done or will do, to what MS needs to be doing.