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Sony and Nintendo left to battle in console wars as Microsoft signals exit

Japan set to become undisputed home of games hardware once more, but analysts worry about industry’s long-term prospects

Microsoft’s decision to ease off its 23-year competition with Sony and Nintendo over supremacy in games hardware has opened a path for Japan’s return as the world’s undisputed home of the console.

The prospect of a new, less internationalised era of console wars has raised hopes of happier times for the Japanese survivors, but has also caused analysts and investors to revisit the question of how much longer the whole genre of dedicated games machines will continue to exist.

Microsoft head of gaming Phil Spencer last month revealed plans to release what would previously have been exclusively Xbox games for use on rival platforms, as part of a new focus on cloud-based gaming.

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