How to sell next-gen consoles, Marketing, Positioning, and Pricing [2020]

[Johnny Awesome]

There will be more of those people with existence of the XSS IMO.

 

[eastmen]

The vast majority of people do not own two consoles in the same console ecosystem.

I don't know about that. I have a few people in my life that have had an xbox one in a bed room and a one x in the living room some with the same ps4/ps4 pros. Lots of families as kids grow up will do the same. My Sister has an xbox one and switch lite for my niece and my nephew has an switch , xbox one s , ps4 and gaming laptop.

 

[Deleted member 11852]

I don't know about that. I have a few people in my life that have had an xbox one in a bed room and a one x in the living room some with the same ps4/ps4 pros.

A "few people" is my point. I am talking about the majority, not the few who are outliers and therefore insignificant. I know a "few people" with more than two cars but they're hardly representative of car owners.

If Microsoft's fortunes are dependant on a user base where the majority buy multiple Xbox consoles, then they are doomed.

 

[BRiT]

Fairly certain Microsoft has made multiple statements about their fortunes not being tied to how many consoles they sell. But thats not for this thread, which should be solely about the Xbox Series S.

 

[eastmen]

A "few people" is my point. I am talking about the majority, not the few who are outliers and therefore insignificant. I know a "few people" with more than two cars but they're hardly representative of car owners.

If Microsoft's fortunes are dependant on a user base where the majority buy multiple Xbox consoles, then they are doomed.

IF i know 10 people who buy a single xbox thats 10 systems. If I know 3 people who buy 3 xboxs for their family thats 9 xboxs. Don't think it matters which is the majority. When your buying electronics for multiple people you often times will budget better . Not everyone buys the $2000 foldable samsung device , but families will buy 3 or 4 or 5 of the mid range $500 device from samsung.

MS is more concerned with game pass. Xbox is but one way for game pass to get into a persons hand

 

[seahorsesaw]

Is it me or does the XSX actually fair poorly in terms of value against PS5 DE?

 

[mpg1]

MS is more concerned with game pass. Xbox is but one way for game pass to get into a persons hand

It's by far the main way though...not to mention gold subscriptions.

I don't really buy it when Microsoft says it doesn't matter how many Xbox consoles it sells. It definitely matters.

 

[goonergaz]

Is it me or does the XSX actually fair poorly in terms of value against PS5 DE?

Indeed, it’s one of the big questions, for 100 more you get significantly more power and SSD space. The main advantage is size and portability- I feel the XSS is ideal for kids and a console that you might take to your mates house.

 

[seahorsesaw]

Yeah, I think form factor alone is a big part of the deal.

 

[BRiT]

Indeed, it’s one of the big questions, for 100 more you get significantly more power and SSD space.

Assuming you can actually find one of the 0.75% stock that is the PS5 All Digital, then that would be the better value depending on game preference. Though you're locked into the higher cost games of $70+ from Sony. It still remains to be seen when (if) Microsoft will increase the cost of their games.

The main advantage is size and portability- I feel the XSS is ideal for kids and a console that you might take to your mates house.

Yeah, it's not for primary use by tech-enthusiasts, it entirely seems to be aimed for the budget strapped or secondary setups or kids who don't care about resolutions as they happily play games on their tablets.

 

[seahorsesaw]

I imagine series s looks Lilliputian when placed next to Ps5 in stores.

 

[zed]

Is it me or does the XSX actually fair poorly in terms of value against PS5 DE?

You mean XB Series S I assume.
Yes it does appear so, esp now that it looks like most xbox games will be quite a bit worse than the series X games, not just reduced resolution that was assumed, but framerates, and pixel quality.
If it was $200 then you could make a case for picking up the series S.
But now I would hate to get one knowing that for $200 extra you would get much better versions of the games, higher resolution (most games) / better framerates (some games) / better pixels (some games). Plus more storage (series S only has 364GB free) so you most likely will have to cough up extra dough for that.
Unless they reduced the price to $200 I can not see a single compelling case for it

 

[goonergaz]

Assuming you can actually find one of the 0.75% stock that is the PS5 All Digital, then that would be the better value depending on game preference. Though you're locked into the higher cost games of $70+ from Sony. It still remains to be seen when (if) Microsoft will increase the cost of their games.

Well I have 2 coming so probably have a significant % of UK stock! lol Regarding the game prices, it's not all that bad - Sony exclusives that you buy at launch are a $10 more so over the life you'd have to by more than 10 to lose out. Of course with PSPlus you get those 20 games off the bat and I always get around 15-20% off my PSN credit so Like I said, it's not as bad as people make out, and as you say everyone else may follow suit.

Yeah, it's not for primary use by tech-enthusiasts, it entirely seems to be aimed for the budget strapped or secondary setups or kids who don't care about resolutions as they happily play games on their tablets.

I've been pretty impressed with my XSS - but I am upgrading as I like to know I'm playing the best version of games (and won't be upgrading my PC for another few months). But my comment re kids was more to do with the lack of 4K/massive TVs in their rooms. My kids biggest TV is 24" - there is literally no reason for them to have an XSX if they could have a XSS - takes up smaller footprint and graphics downgrades will be hard to detect (even if they are bothered). If little johnny does have an issue in a year then upgrade to the XSX and sell on the XSS - makes it more palatable in these hard times, they get their new console and the parents save some money. The big surprise for me is that the XSX is so much more popular at launch, I think I was the only person at Game who pre ordered the XSS! lol I guess that's the 'must have' market for you (and why I'm upgrading). I suspect XSS next year will fly off the shelves.

 

[cheapchips]

You mean XB Series S I assume.
Yes it does appear so, esp now that it looks like most xbox games will be quite a bit worse than the series X games, not just reduced resolution that was assumed, but framerates, and pixel quality.
If it was $200 then you could make a case for picking up the series S.
But now I would hate to get one knowing that for $200 extra you would get much better versions of the games, higher resolution (most games) / better framerates (some games) / better pixels (some games). Plus more storage (series S only has 364GB free) so you most likely will have to cough up extra dough for that.
Unless they reduced the price to $200 I can not see a single compelling case for it

Aside from the raw $100 being enough of a difference for some, the cost of entry and cost of ownership are significantly lower for XSS All Access/Gamepass subscribers.

A $399 console + a few $70 games

Vs.

$25 a month for the S with games, including a reasonable amount of Madden time.

Or

$299 to play my favourite F2P at better settings.

The $ per spec comparison or fps isn't where enough potential customers will be making their purchasing decision. It's not even making a difference on here, where on performance principles no B3Der would buy an S. A few have, for reasons.

 

[Deleted member 11852]

Well I have 2 coming so probably have a significant % of UK stock! lol Regarding the game prices, it's not all that bad - Sony exclusives that you buy at launch are a $10 more so over the life you'd have to by more than 10 to lose out. Of course with PSPlus you get those 20 games off the bat and I always get around 15-20% off my PSN credit so Like I said, it's not as bad as people make out, and as you say everyone else may follow suit.

London Geezer also pre-ordered a PS5DE, a couple of my friends did too.

There seem to be plenty out there, which is amazing for a console that some are asserting only exists for marketing a pricepoint! It's almost like it's in Sony's interest to sell PS5DE because it locks all of your game purchases into Sony's online store!

 

[London Geezer]

Yep. No issues pre-ordering both on this side of the pond *shrug*

 

[Deleted member 11852]

Yep. No issues pre-ordering both on this side of the pond *shrug*

Perhaps this is a scummy practice by some US retailers. After all, it's not in their interest to sell you a console for which they can't sell you any game, only cards to top-up PSN credit.

 

[goonergaz]

Perhaps this is a scummy practice by some US retailers. After all, it's not in their interest to sell you a console for which they can't sell you any game, only cards to top-up PSN credit.

Well from what Game told me the allocation was much lower on PS5DE - I’m largely a digital gamer this gen (towards the end anyway) and I have GP to pick up a chunk of games as well as disk versions of XSX if I’m unsure on a game.

I won’t be buying many full price games for sure.

 

[Arwin]

Well I have 2 coming so probably have a significant % of UK stock! lol Regarding the game prices, it's not all that bad - Sony exclusives that you buy at launch are a $10 more so over the life you'd have to by more than 10 to lose out. Of course with PSPlus you get those 20 games off the bat and I always get around 15-20% off my PSN credit so Like I said, it's not as bad as people make out, and as you say everyone else may follow suit.


I've been pretty impressed with my XSS - but I am upgrading as I like to know I'm playing the best version of games (and won't be upgrading my PC for another few months). But my comment re kids was more to do with the lack of 4K/massive TVs in their rooms. My kids biggest TV is 24" - there is literally no reason for them to have an XSX if they could have a XSS - takes up smaller footprint and graphics downgrades will be hard to detect (even if they are bothered). If little johnny does have an issue in a year then upgrade to the XSX and sell on the XSS - makes it more palatable in these hard times, they get their new console and the parents save some money. The big surprise for me is that the XSX is so much more popular at launch, I think I was the only person at Game who pre ordered the XSS! lol I guess that's the 'must have' market for you (and why I'm upgrading). I suspect XSS next year will fly off the shelves.

I hear what you’re saying and in theory it is definitely true. But in order for that to hold, valhalla type situations ideally shouldn’t happen too frequently, where that S version is only 30fps and the X version is 60. Ubisoft should have gone for a lower resolution there with a higher framerate. Maybe Microsoft should make that a strong recommendation ...

 

[mpg1]

I hear what you’re saying and in theory it is definitely true. But in order for that to hold, valhalla type situations ideally shouldn’t happen too frequently, where that S version is only 30fps and the X version is 60. Ubisoft should have gone for a lower resolution there with a higher framerate. Maybe Microsoft should make that a strong recommendation ...

Ironically Micrososft calling it a 1440p machine is probably what led to Ubisoft going for 1440p on Valhalla...