No room for both PlayStation and Xbox in next gen console race says reportAdam StarkeyPublished December 20, 2024 2:25pmUpdated December 20, 2024 2:25pm Who is going to fall? (Metro/Sony/Microsoft/Nintendo)A prominent research firm believes therell only be space for two major consoles next generation, and Nintendo is the only guaranteed winner.While it feels like the PlayStation 5 and Xbox Series X/S generation has barely left an imprint so far, Sony and Microsoft already have eyes on the next console race.Nintendo is expected to kick it off with the successor to the Switch next year, but Sony and Microsoft have both teased plans for its next generation consoles with the next Xbox rumoured to arrive potentially as early as 2026.What exactly Sony and Microsoft can offer players is the big mystery, especially as both companies are struggling to get people to invest in the current generation, now that the graphical arms race has seemingly peaked.According to market research firm DFC Intelligence, the next generation race will be pivotal in shaping the future of the console space posing a significant risk for one of the three major console manufacturers.It predicts Nintendo will be the clear winner among the next generation of consoles, due to its earlier launch and lack of competition, leaving either Sony or Microsoft to struggle mightily in third place.There isnt room for more than two major console systems, the report states. Sony or Microsoft will struggle mightily in a distant third place largely depending on which of those companies can gain early momentum.Based on the size of the current player-base for the PlayStation 5, Sonys next system is described as having an advantage, but it notes that Microsoft will be the largest gaming publisher heading into the next generation.A new Sony system (PlayStation 6?) should have an advantage because of loyal base and strong Sony IP, the report adds.Microsoft failed with Xbox Series X/S but has made major acquisitions to become the worlds largest software publisher. Microsoft has the option of focusing on software and distribution models over hardware.However, its unclear how buying Activision Blizzard is going to do anything for Microsofts console sales, since almost all of the games will also be on PlayStation especially given the dire sales results this year.Although theyre somewhat mincing their words, DFC Intelligence is clearly implying that Xbox is most at risk even if its software publishing business is more robust than ever.Microsoft is working on another Xbox console, including a handheld, but the brand has made moves towards becoming a publisher untethered to a specific platform with its Game Pass subscription service available through PCs, phones and Amazon TV devices.While Microsoft can probably afford many losses considering the size of the company, theres little reason for them to exist in the hardware space if they have another failure like the Xbox Series X/S. While Microsoft hasnt released official sales figures, reports suggest it has been dwarfed 3-1 by Sonys PlayStation 5. Could Xbox find more success with a handheld? (Microsoft)Beyond these predictions, DFC estimates the games industry will see record growth in 2025, thanks to new Nintendo hardware and GTA 6. The firm also believes the number of people worldwide who play video games will exceed 4 billion by 2027 nearly half of the global population. Although the majority of that will be free mobile and web-based games.David Cole, DFC Intelligence founder and CEO, said: Over the past three decades, the video game industry has grown more than 20x, and after two years of slumping hardware and software sales, its poised to resume growing at a healthy rate through the end of the decade.More TrendingWhile 2025 will mark the beginning of that upward trajectory, some huge questions remain, including who will lose the next-gen console war and who will win the game software distribution battle. And with the large publishers focused on live services around evergreen franchises, opportunities for smaller studios will be plentiful. Sony launched the PS5 Pro in November (Sony Interactive Entertainment)Emailgamecentral@metro.co.uk, leave a comment below,follow us on Twitter, andsign-up to our newsletter.To submit Inbox letters and Readers Features more easily, without the need to send an email, just use ourSubmit Stuff page here.For more stories like this,check our Gaming page.GameCentralExclusive analysis, latest releases, and bonus community content.This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Your information will be used in line with our Privacy Policy