We overestimate the value of the console exclusive

Big-name blockbuster exclusive video games are crucial to any platform or ecosystem. But are they the most important determining factor in the success of a console, like the upcoming PlayStation 5 or Xbox Series X? The common wisdom is that they do indeed have the biggest effect on profitability and popularity. The PlayStation 4 had better exclusives and therefore it beat the Xbox One — case closed. But I’m not convinced. Let me explain why.

To be clear, I absolutely acknowledge that exclusive content is important. That’s obvious. Just look at what’s happening across all of media. HBO Max bought Friends away from Netflix. Spotify acquired exclusive rights to the Joe Rogan podcast. Mixer is paying millions of dollars to livestreamers to keep them off of Twitch. Those deals happen because “content is king.” Nintendo wouldn’t matter without exclusive Nintendo games.