Business Approach Comparison Sony PS4 and Microsoft Xbox

If you've ever worked with MS in any capacity, you'd know that they are a very controlling partner. It think it's somewhere in their DNA as a company, everything is controlled, everything is slightly political, they constantly make you feel as if they're doing you a favor by allowing you to work with them.

Having worked with them on a few titles and working with others who have worked with them on completely separate titles, I would say that is the complete opposite of true compared to other publishers. We always enjoyed working with them, and they have always been very supportive of our autonomy on a project. Not so good on paying quickly but that's common with large companies in and out of the games industry.
 
If you've ever worked with MS in any capacity, you'd know that they are a very controlling partner. It think it's somewhere in their DNA as a company, everything is controlled, everything is slightly political, they constantly make you feel as if they're doing you a favor by allowing you to work with them.

So I'm really not surprised so many people wanting freedom, but I wouldn't chalk it up to anything in particular, this is just how MS is, how they've always been.

Pretty much how all large businesses operate.
 
Pretty much how all large businesses operate.

Its not a rule. Some have them at a greater extend some at a lesser. Its usually large companies that started a very long time ago that have it at a higher extend. They carry with them a culture from an age where a vertical hierarchy and a more authoritative ideology was the norm for how to do things
 
Techinsight teardown is completely bonkers. :LOL:

IHS iSuppli have been quoted on B3D for years, are we going to change that?
PS4 : $381
XB1 : $471

fixed :p
 
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Techinsight teardown is completely bonkers. :LOL:

IHS iSuppli have been quoted on B3D for years, are we going to change that?
PS4 : $381
XB1 : $471

fixed :p

If true, it's a manageble loss, it can be offset by just one first party game sold together with the console. For both comps.
 
Apparently, the GDDR5 vs DDR3 cost difference is only €19,00 euros per console, lol.
Xbox One could have had the PS4 GPU, as well as 8GB of GDDR5 memory, for only €2 - 4 more..
I guess a lot of people will get fired over this..


Captain. Picard. face palm.
 
Apparently, the GDDR5 vs DDR3 cost difference is only €19,00 euros per console, lol.
Xbox One could have had the PS4 GPU, as well as 8GB of GDDR5 memory, for only €2 - 4 more..
I guess a lot of people will get fired over this..


Captain. Picard. face palm.

Back when the PS4 and the XB1 where being designed, it was not clear wether or not dense enough GDDR5 modules would be available for them to have 8GB. It was pretty much a perfect storm that allowed Sony to have 8GB, it was previously 4GB before they secured supply of the denser modules. Theres a lot more then just cost that these decisions get made on, and they got made a long time ago.
 
If true, it's a manageble loss, it can be offset by just one first party game sold together with the console. For both comps.
Officially both companies have said something similar: that they would more or less break even on the actual console hardware, and profit from everything else.

Back when the PS4 and the XB1 where being designed, it was not clear wether or not dense enough GDDR5 modules would be available for them to have 8GB. It was pretty much a perfect storm that allowed Sony to have 8GB, it was previously 4GB before they secured supply of the denser modules. Theres a lot more then just cost that these decisions get made on, and they got made a long time ago.
The availability of 4Gbits chips was relative to the latest die shrink of GDDR5, so the cost certainly went down at the same time, the 4Gbits are about the same area as 2Gbits from the previous node.

I think we're going to see affordable 8GB and 12GB GPU cards very soon ;)
 
Our cost estimates were though quite high.
Really in February we even come to suggest 3 digits figures for 8GB of GDDR5.
Almost everyone here bet PS4 would have had higher BOM and higher price than the XBO.
 
Apparently, the GDDR5 vs DDR3 cost difference is only €19,00 euros per console, lol.
Xbox One could have had the PS4 GPU, as well as 8GB of GDDR5 memory, for only €2 - 4 more..
I guess a lot of people will get fired over this..


Captain. Picard. face palm.

Why would they get fired? You're make a lot of assumptions that they wanted a GPU as powerful as the PS4's or would have signed up for 8GB of GDDR5 even if they had know it was going to be available.
 
Apparently, the GDDR5 vs DDR3 cost difference is only €19,00 euros per console, lol.
Xbox One could have had the PS4 GPU, as well as 8GB of GDDR5 memory, for only €2 - 4 more..
I guess a lot of people will get fired over this..

This post goes a long way to show how superficial your understanding of this situation is.

The major design decisions on these consoles were made years ago. Noone could have predicted the current situation correctly, it was a very risky move on Sony's part that payed off. Historically, such risks tend to ruin companies.
 
Our cost estimates were though quite high.
Really in February we even come to suggest 3 digits figures for 8GB of GDDR5.
Almost everyone here bet PS4 would have had higher BOM and higher price than the XBO.

I seem to recall a much more realistic figure quoted by some though :p
 
Well my worst case scenario GGDR5 BOM estimate was crazy, really crazy now that I look at it.
The things I said about the 8GB of GDDR5 ,before the reveal, were less crazy.
 
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This post goes a long way to show how superficial your understanding of this situation is.

The major design decisions on these consoles were made years ago. Noone could have predicted the current situation correctly, it was a very risky move on Sony's part that payed off. Historically, such risks tend to ruin companies.

Not to mention MS is making a nice profit from hardware. They could always price reduce later if they feel they need to.
 
This post goes a long way to show how superficial your understanding of this situation is.

The major design decisions on these consoles were made years ago. Noone could have predicted the current situation correctly, it was a very risky move on Sony's part that payed off. Historically, such risks tend to ruin companies.

I understand it better than you think. With Allard and a lot of key members gone, it probably went like this.

boss of division: "won't going with a lot of, slow memory put us at a technical disadvantage?"
-"no sir, our TV functions will make up for it easily. Like, our calculations show that 9 out of 10 Americans watch TV everyday. the hearing of the word TV releases endorphins which stimulate the relaxation center as well as the patriotic cortex. Americans love TV"

boss of division:".. okay but what about the forced inclusion of kinect? adding 100 dollars to the BOM, I don't like it.."
-"sir, you don't understand. Our numbers show that Kinect is the fastest selling consumer product ever conceived, everybody loves kinect. kinect was on oprah and everybody loves it."

boss of division:" but what about the GPU? I believe that the inclusion of a state of the art one in our 360 did a lot of good. Why go with the slower one?"
-"our calculations show that it will be much cheaper to go with a slower one plus ESRAM, on the subject of ESRAM: latest estimates are that the yields are pretty high."

boss of division:"this DRM thing seems really anti-consumer, I think it will hurt our brand a lot should the market decide against it.."
-"no, according to many tech forums, our competition will use DRM as well"


boss of division: "on the subject of our competition, what about Sony?"
-"we don't compete with Sony anymore, we left them far behind, Apple is our goal now. Sony can not afford a fast, next generation console sir. It says so on many forums, where many tech experts reside".

boss of division: "well, you convinced me. The xbox one will focus on TV, have a lot of slow ram, a mid sized GPU. kinect will be mandatory for every system. always-on will be a mandatory part of the DRM. meeting dismissed"

MS gambled on Kinect, DRM, TV and multimedia functions. History will show the victor.

Like I said: once the higher-ups realise the situation, and how much marketshare all decisions will cost them, not to mention probable losses of billions of dollars.. I am pretty sure some heads are gonna roll.
I can tell you that the next Dean Takahashi book will be a really interesting read.

edit:
Personally I think MS made the right compromises to achieve what we have in the X1. The games already show that the graphics are fantastic and can only get better which means the average Joe will be quite satisfied and not be worried about stupid things that nerds with magnifying glasses obsess over.

From that perspective, I guess the 100 dollar difference in price is something that only poor people obsess over.
 
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Personally I think MS made the right compromises to achieve what we have in the X1. The games already show that the graphics are fantastic and can only get better which means the average Joe will be quite satisfied and not be worried about stupid things that nerds with magnifying glasses obsess over.
 
Not to mention MS is making a nice profit from hardware. They could always price reduce later if they feel they need to.
Except that they aren't. :rolleyes:
They said that they either break even or make a small profit. Same for Sony.
Official statements are roughly matching IHS iSuppli teardown estimates.
 
Except that they aren't. :rolleyes:
They said that they break even or make a small profit. Same for Sony.

MS doesn't need to sell any games to make a profit on the console. SONY loses money on each console.

From that perspective, I guess the 100 dollar difference in price is something that only poor people obsess over.

I don't see any widespread obsession over the price. Anybody who wants one got one and those who don't want the bundled camera are free to go elsewhere to save $100.
 
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