Brian Earl Spilner said:
Disagree strongly.
Nintendo has always been the least susceptible of the three because of the strength of its first party library.
Microsoft seems to have the weakest exclusive library of the three, and when gamers have the option of shelling out $400 for the next Xbox, or playing those same AAA games in Stadia, I don't see much reason why they wouldn't go with that.
Now, Microsoft could be fine. But, my point is that Xbox might not.
I feel like you're missing some things. Microsoft is working on their own cloud streaming gaming service that they'll be doing tests on this year and likely launching next year. So it's not "Will I buy the Xbox One XS or opt for Stadia." It's "Do I want to buy a $4-500 box (PS5 or Xbox One XS), or do I want to use a cloud gaming service. If I choose a cloud gaming service, which do I choose? The one that I've been buying games from for years, or Google who I have no back catalog and has very limited if any exclusive titles."
Suppose Microsoft makes this offer to people:
-Xbox Gold is $6 by itself
-Xbox Games Pass is 9.99 per month by itself
-Xbox Cloud is the same price as Stadia per month ($15?) and you have to buy games for retail just like on Stadia, however every game you've previously purchased from us is going to be available for no additional charge. Xbox Cloud comes with Xbox Gold, but does not include games pass.
-For $20 per month you get Xbox Cloud (and Gold) and Games Pass, which includes 100 games from our back catalog to play.
-Play on your phone, tablet, computer, or TV, we don't care. Play native 4k60fps HDR games on your old Xbox One S. Play with an Xbox One controller on your Xbox console, or a Playstation controller, we don't care. Play with a keyboard and mouse, play with your PC friends, play with your Switch friends. We don't care.
Do you really think a $500 Playstation console and 4 AAA titles a year can compete with a $0 upfront cost and an entire catalog of games to play? Sony is still trying to resell you old games you already own. Imagine that Xbox says "We have nearly our entire catalog available to you from the Xbox all the way to today and all of it is available to purchase or play if you've already purchased it." And Playstation still says "We're not doing PS3 backwards compatibility."
Do you think Google can beat that offer? Or Amazon? I don't.
Now consider that there are rumors that Microsoft is working out a deal with Nintendo to bring Xbox Games Pass to the Nintendo Switch. Consider that in two years you may have a Nintendo Switch with Xbox's cloud gaming service on it to play all the non-Nintendo AAA titles that the Switch can't run and what if Nintendo partners with Verizon/AT&T to provide 5G service to a "New Nintendo Switch".
As for internet speeds. 5G is a thing now. The speeds are upwards of 1Gb/s down and latency of 1 ms, which isn't going to be the biggest source of latency (your TV display is). In a few years (5? 7?) there is supposed to be gigabit speed internet available from low earth satellites with the same low latency. This next generation is going to be the last generation that the majority of consumers are going to be playing their games on hardware that does local computing.
So yeah, Xbox hardware may not be a thing for very much longer, but the brand may be on a path to crush Playstation and force them to go third party by the end of next generation and substantially hurt Valve/Steam.