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Significant part: there were fewer customers in the entire market back then
Definitely. I got Oblivion in April of 2006 about a month after the game came out. Xbox 360 had just come out months prior in November 2005. Morrowind was not a mainstream hit. Oblivion also not being a mainstream game yet. Mainstream for the series was Skyrim with the arrow in the knee and fus roh dah viral stuff
Steam started supported 3rd party games in I believe 2005. Peak concurrent users on Steam was probably in the low hundreds of thousands compared to today’s ~40 million. PS3 would launch end of 2006 and Oblivion wouldn’t show up on it until some time after launch