The End Of Xbox? Gaming Analyst Says Consoles On The Way Out

Microsoft’s Xbox days may be over, according to Wedbush Securities analyst Michael Pachter. During a presentation on Monday with moderator Geoff Keighley at GamesBeat 2014 in San Francisco, the well-known researcher and digital media analyst discussed why he felt mobile devices will one day replace gaming hardware like the Sony PlayStation 4, Xbox One or Nintendo Wii U.

Watch the entire stream below:

Watch live video from GamesBeat on www.twitch.tv>

“I think consoles are going away, because you used to need a console because you could not connect a microprocessor to your TV screen,” Pachter said during the discussion. “Now, if you have a Chromecast stick or a Roku box, you can. So why do we buy consoles? I mean, your phone will be powerful enough to power any game in two more generations. And, so, why buy a console? I think Microsoft actually knows that.”

Pachter made these observations following Microsoft's acquisition of indie sandbox game “Minecraft” developer Mojang for $2.5 billion. “Minecraft,” which launched on the PC as an alpha in 2009, has sold 54 million copies across a number of platforms as of late June this year. The game is especially popular on mobile platforms, indicating that Microsoft hopes to reach a larger audience.

Pachter also commented on developer Bungie’s latest action shooter “Destiny,” which launched Sept. 9. Though the game has been selling well, reviews have been lukewarm. Bungie and publisher Activision (NASDAQ: ATVI) prohibited websites from posting reviews before the launch of “Destiny.”

“Destiny” is enjoying impressive sales figures. The open-world game launched last Tuesday for the Xbox One, Xbox 360, PS3 and PS4, reaching $500 million within 24 hours, setting a record for the biggest franchise debut of all time.

But while sales are strong, many reviews of the game are lackluster. Yes, “Destiny” is visually stunning and fun, but is Bungie’s latest release worthy of so much hype? A number of critics don’t think so, and the game is earning mediocre ratings.

“That’s not good enough, I think, to support a recurring franchise,” Pachter said. “They’re going to have to step it up next time.”