Nothing he said was wrong or illogical, people just don't want to hear it.
The console wars started with Sega advertising and it outlived itself. We're now at a point in time where there isn't much value in having PlayStation and Xbox on the market.
Technically the 'console wars' started with Atari & Intellivision, but it was popularized with SEGA of America specifically. SEGA of Japan & SEGA of Europe didn't do much of that (especially the former), and even so, Nintendo of America engaged in it as well alongside NEC and, again, Atari (with the Jaguar).
I saw many people in this thread say Xbox isn't dead, but it absolutely is.
It's technically not dead until the product is no longer offered in the commercial consumer electronics market. Meaning, not until Microsoft stops manufacturing Xbox systems altogether. That hasn't happened yet and it doesn't seem like it'll be happening anytime soon, either.
I think somehow people think as long as Xbox is selling 1 unit that it's not dead. The reality is that they aren't selling enough units to stay relevant. They'll continue "launching" exclusives on Xbox Series, because they do get SOME 3rd party royalties, but primarily because of GamePass, which won't survive without Xbox.
Eventually Microsoft will stop with launch exclusives too because economically they do nothing for Xbox or even Game Pass. The money they'd make providing future games Day 1 on PlayStation & Nintendo alongside PC far outweighs the B2P sales revenue they'd get off the remaining Xbox console owners or whatever net profits Game Pass's current subscription rates are bringing in.
The cautionary tale, is that bad hardware sales don't have to be the driving force behind that type of change. Meaning, it's very possible SIE eventually stop with 1P games as "timed exclusives" on PlayStation and start putting everything Day 1 at least on PC. I somewhat feel PS5 Pro's market performance will play a big part in that decision either taking place or not taking place, but SIE will fail to reconcile the fact that their aggressive strategy of ports to PC would've been a contributing factor to (potential) lackluster PS5 Pro market performance to begin with.
They're going to pivot in the next generation by selling a high end gaming PC with BC for past xbox games and access to GamePass and Xbox Live. They'll make money on the hardware, but lose the 3rd party royalties to companies like Steam. They'll do this because the 3rd party royalties are already shit. They'll publish their own games in the Xbox store so they don't have to pay the royalties to Steam. They'll also release their own handheld in the same vein.
It won't go down like this. Them trying to make their own games exclusive to the Xbox Store will just lose them all of their Steam customers; Steam gamers aren't going to migrate to an inferior storefront or one wholly unfamiliar to them where their friends aren't at. SIE would face this exact same problem on PC if they tried Day 1 PC locked to their own PS launcher like I've seen some suggest; in fact it'd be worst for SIE because they don't have major vested interests in PC that can cross over to gaming the way Microsoft does with DX12U, Windows etc (or the huge proliferation of Xbox controllers as the preferred controller for PC gamers who play on a pad).
Another thing is, Microsoft are going to find a way to partially resolve the 3P sales issue even if they put Steam on the next Xbox. It's actually as simple as tying Steam access to an active Game Pass subscription. The 2 TB Series X is probably a test for the price point they'll put their "top end" next Xbox at, with the selling points being: Steam access (via part of some Game Pass tier), whitelisted Windows apps (via MS/Windows Store, running extended Windows utilities in some protected layer alongside a modified Xbox OS), component modularity (upgradable RAM, SSD, custom-built low-profile GPU expansion etc.). That's probably the best way for them to handle a next-gen "high-end" device, while they also have the rumored handheld.
Maybe OEMs will be able to license the hardware for their own custom versions with some spec changes (think similar to 3P GPUs from MSI, Gigabyte etc. for Nvidia & AMD cards) and different UI frontend, extra USB/microSD etc. ports or what-have-you.
Selling hardware at a loss and barely selling any software, doesn't have much value.
And to that, volume production for next-gen Xbox devices will be a lot lower than it's been for 360 or XBO in the past. I can definitely see ~ 2 or 3 million for a "console" and 2-3 million for a handheld (or maybe with adjustments to where just 4 million for both) annually. That's from Microsoft though; I dunno if OEMs would make variants and if so how that'd impact the numbers MS would manufacture.
They will probably use the general sales performance of Steam Decks as a guide, try extrapolating supply if Valve weren't capped by their production limits, and aim for something between that number and the lower end of what Xbox consoles are selling these days (which this year looks like it could be ~ 5 million or so).
Meanwhile, Sony will also release their own handheld, but it won't play PC games, it'll play PlayStation games. They'll do this with hopes of increasing engagement and TAM, particularly in Japan/Asia writ large.
Sony's ultimate goal will be to make it more difficult for developers to ignore the PlayStation platform, because you'd be missing out on console and handheld sales. Meanwhile, they'll spend less money on exclusivity deals.
If they're spending less on exclusivity deals, they'd better redirect those funds to more internally-developed 1P titles. Content differentiation (i.e exclusives) will never NOT be important; it is a big factor in other industries like TV/show streaming or even music services, so gaming would certainly not be exempt from this.
Sony is angling to become synonymous with gaming just as Netflix is synonymous with streaming and if they're successful, they'll be able to generate billions more in revenue and operating income. This applies to PC and Mobile too, especially when it comes to PS+.
There's a right and wrong way to do everything. SIE won't reach that level if their multiplat strategy for PC & mobile (but specifically PC) cannibalizes their console to a notable degree among the dedicated hardcore & core console enthusiasts, especially the ones who usually buy within the first 1-2 years. If that number declines, it can have a cascading effect on later buy-in among some other gamers, and a more noticeable impact on software revenue & profit margins.
IMO Sony's current strategy with PC is creating some dangerous elements for the stability of retention among a select cluster of those dedicated hardcore & core console enthusiasts; PS5 Pro sales rates could be an early indication of that, we'll see. Continued trajectory with the strategy as-is or more aggressive pushes into multiplat for PC (Day 1 for all games, heavily shorter windows between console & PC for all or most games, etc.), or even too much an imbalance between GAAS and non-GAAS titles for the rest of the PS5 gen, could stress problems even more.
And, it'd be the next system (PS6) that would start to see the full brunt of those (IMO) errors. Of course "full brunt" is relative, and enough revenue & profit gain from remaining and new customer bases on platforms targeted for expansion can not only offset those losses, but completely wash over them while bringing in more revenue & profits than before. If that's what SIE is counting on, then we shouldn't act surprised if/when they do press into a more aggressive multiplat strategy going forward.
If Sony could get to 100 million PS+ subscribers across console, handheld, mobile, and PC, even at the lowest tier is 80 dollars a year. That's 8 billion a year in revenue from just PS+, but with PS+ extra and premium, that probably brings things to 10 billion a year in revenue.
That assumes a few things, but in rough ballpark terms yes this could be possible.
The roadmap for them is clear as day and the way you pay for all this is in low cost-low risk-high margin-high return endeavors like PC ports. If Sony plays its cards right, it can become self-sufficient in a post-platform market. The next 5 or so years is crucial for the future of SIE.
You and I clearly have differing POVs on how SIE should best tackle that type of growth. I guess we'll see which theory was ultimately the correct one within 5 years, though I think we can start seeing signs of leaning one way vs another much sooner than that.