Business Approach Comparison Sony PS4 and Microsoft Xbox

Because not everything is as latency sensitive as something else.

"adding a few cores" - implies those few cores are as able as the local ones. Whatever it is those cores are doing must not be important considering how hamstrung they are due to indeterminate high latency.
 
The thing some of you guys are forgetting is that 10 years out is exactly when MS needs this stuff to work right.

It's really smart that they are starting now with Drivatars and dedicated servers.

If all goes according to MS' plan, 10 years from now people will be on digital downloads, Xbox Live Platinum for $15 a month, no more new consoles, no more retail, with cloud computing.

I've said this before and it applies to the "paywall" discussion as well: If you're not willing to go on Xbox Live Gold, then MS doesn't really care about you. That's the whole reason they got into the business - to dominate the living room.

They don't care about a measly $1 billion a year made on traditional gaming. If that's the end game for them, they consider it a wasted effort. They're looking at something that might get them $5 or $10 billion a year. Something like 200 million users paying $15 a month for cloud gaming.
 
I've said this before and it applies to the "paywall" discussion as well: If you're not willing to go on Xbox Live Gold, then MS doesn't really care about you. That's the whole reason they got into the business - to dominate the living room.

They don't care about a measly $1 billion a year made on traditional gaming. If that's the end game for them, they consider it a wasted effort. They're looking at something that might get them $5 or $10 billion a year. Something like 200 million users paying $15 a month for cloud gaming.

Yeah, I can't believe this is even a story, let alone a discussion. If you didn't already take the hint from the initial "always" connected policy, or from the fact that you needed Gold membership to do anything on the 360, or from the fact that Sony copied the pay-for-online gaming model for the PS4, there's not much I can do for you.

The 360 is worthless unless you want to play offline, single player games, without Live. The One is worthless, unless you want to play offline, single player games, without Live.

There's nothing new here. There's no story here.

They don't want to sell more units by offering more features for free. They want to get more subscribers, because subscriptions, while not "free" certainly scale a lot better in terms of ROI than hardware does. There's a reason everybody, not just MS, is pushing Software As a Service (SAS).
 
$15 a month? For what, just the online service or is it an all-you-can eat access to all games, like Spotify for music?

Even if the latter is the case, there are a lot of people who buy consoles who won't use it that much to justify that kind of monthly subscription.

If it's for XBL services and you still have to pay for games, then that would be 3 times what XBL Gold costs now.

Won't fly. There are plenty of electronics devices which doesn't require monthly fees.
 
The money comes from the devs, pubs as well, plus all of the non-gaming services they offer as well. It's already a billion a year in revenues for them, likely to keep increasing.
 
Yeah, I can't believe this is even a story, let alone a discussion. If you didn't already take the hint from the initial "always" connected policy, or from the fact that you needed Gold membership to do anything on the 360, or from the fact that Sony copied the pay-for-online gaming model for the PS4, there's not much I can do for you.

The 360 is worthless unless you want to play offline, single player games, without Live. The One is worthless, unless you want to play offline, single player games, without Live.

There's nothing new here. There's no story here.

They don't want to sell more units by offering more features for free. They want to get more subscribers, because subscriptions, while not "free" certainly scale a lot better in terms of ROI than hardware does. There's a reason everybody, not just MS, is pushing Software As a Service (SAS).
But there's a stark difference between creating additional incentives for a service, and aggregating other paid-for services into something to pay for a second time over.

I think a lot of people get it, but that doesn't stop them from expressing disdain for the conditions and of that particular service. It's why they support Sony and more people switching to the PS4, it's why they see more value in what they're offering.

XBLG as-is comes from the beginning of the current console generation where MS had Sony beat in console pricing, and started with a significantly better online service (because Sony didn't really have one). Now the times and the competition's standards are changing, and XBLG's conditions/standards should change with it.

But MS is willing to change or reverse certain policies, while at the same time trying to remain firm in other ways. I just hope Sony succeeds in gaining plenty of marketshare this time around, I favor them but I want MS to continue to change in the face of tough competition going forward.
 
This is a spin-off from the Xbox One rumor thread...

Are MS apps & non-gaming services that are behind the Gold paywall offering a better experience that make it worth paying a monthly subscription? I ask this because I keep seeing the comment that people can get the same experience on the PC for free or MS are not making apps that do anything better than what's on PC or tablet/phone devices.

IMHO, I could possibly get a similar experience on PC or other devices, but I don't think they are equal. I see the Xbox experience as superior to what I can get elsewhere. I see value in the apps & services because they are specifically designed for the TV & Kinect. So while yeah I can get a free service elsewhere I don't think it's as good or better. So I'm willing to pay a fee for the better experience.

Again, I think this goes back the audience here at B3D. There is a large vocal European population here. I can understand if they have a problem with the fee if they are not getting as many apps or services as those like myself who live in the States. I just want people to understand that because I think that's why we have a lot banter about the Gold fee being worthless versus PS+. I just wished some of you weren't so vocal about it. We get it OK? LOL Let's move onto something more worthy of discussion because the Gold paywall discussion is getting a little old.

Tommy McClain
 
I don't think you saw the title of the thread "Business Approach Comparison Sony PS4 and Microsoft Xbox".

Gross over exaggeration that it's mainly people in Europe complaining I would say.
In fact, I've not heard anyone say, why should I pay for gold for something that I cant use? haha.
What does the US get that Europe doesn't?
NFL? Well, if they don't get football/soccer, then yes there may be an issue, but they've already said their going to get that.

It's not an old argument, because things are just starting with the next generation, it's not the status quo.
 
This is a spin-off from the Xbox One rumor thread...

Are MS apps & non-gaming services that are behind the Gold paywall offering a better experience that make it worth paying a monthly subscription? I ask this because I keep seeing the comment that people can get the same experience on the PC for free or MS are not making apps that do anything better than what's on PC or tablet/phone devices.

IMHO, I could possibly get a similar experience on PC or other devices, but I don't think they are equal. I see the Xbox experience as superior to what I can get elsewhere. I see value in the apps & services because they are specifically designed for the TV & Kinect. So while yeah I can get a free service elsewhere I don't think it's as good or better. So I'm willing to pay a fee for the better experience.

Better than what? PS3 has been the lead Netflix platform in terms of tech deployment for a while. It had 5.1 audio first. It had 1080p first. It got SuperHD first. It got Max first. It got Profiles first. I value all those things more than Kinect integration (well, maybe not Max!).

And you are aware MS isn't actually creating these apps, right? Netflix built their app. Amazon built theirs. Even if the experience was superior it's still MS charging you money to use apps they didn't create to access services they don't provide. You can think it's worth eating the cost, but that doesn't mean a lot of people won't simply find that a skeezy business practice.
 
Better than what? PS3 has been the lead Netflix platform in terms of tech deployment for a while. It had 5.1 audio first. It had 1080p first. It got SuperHD first. It got Max first. It got Profiles first. I value all those things more than Kinect integration (well, maybe not Max!).

And you are aware MS isn't actually creating these apps, right? Netflix built their app. Amazon built theirs. Even if the experience was superior it's still MS charging you money to use apps they didn't create to access services they don't provide. You can think it's worth eating the cost, but that doesn't mean a lot of people won't simply find that a skeezy business practice.

You can play netflix on anything so you should not need your Xbox for it.

As I've said, I think MS is just playing this game of "the more things behind paywall the more sub". As Sony found out with very low PS+ subscriber rates, so they copied and rolled free online MP behind it. MS proved the business model was a successful one in the end.

I always said I though both couldn't couldn't survive. Either Xbox would have to go free or PS would have to go pay. They coexisted longer than I thought actually.
 
They still have to target the hardcore, but going forwards I do feel casuals are becoming more and more important.

Simple random anecdotal example, from a girl I recently booked for a shoot. I look at the friends I have that are hardcore gamers and some buy a few apps, but most only stick to free ones. Yeah they are playing the latest core game, but they are still rocking an iPhone 3gs. They basically buy a console and that's the extent of their hardware purchases, and they buy the occasional 'hardcore' game and play that. Contrast this to the last girl I filmed. She has the latest tablet, filled with apps. She has the latest phone also filled with apps. She plays games too, and since she doesn't have pay tv she subscribes to all the usual suspects for her tv and media watching on her digital devices. She clearly spends lots of money on digital purchases and related hardware, as she has lots of disposable income. However Microsoft aren't getting a penny of it because she doesn't own a console. I asked her why just out of curiosity, and her exact answer was "All they have is killing games." Right or wrong that's her perception of game consoles, and because of it this girl who spends more than 6 of my hardcore gamer friends combined is spending her money elsewhere.

Another real but anecdotal example was a girl that was actually a gamer girl. She plays games like Fallout 3 and Skyrim, but she also plays lots of casual type games and like the girl above spends lots of money on digital purchases and digital hardware, far more than your typical hardcore gamer. This girl had a ps3, but the only thing she did on it was play those hardcore type games like Fallout 3. Outside of that her activities shifted to other devices like tablets and phones and that's where she spent the bulk of her money. So Sony got a bit of her money on the hardcore games she played, yet didn't see a penny of all the other money she spent on other devices because they didn't provider her a platform she wanted to be on for those activities. Another monetary opportunity lost.

I can't help but imagine that Microsoft would and should want a piece of this lucrative type of consumer who while considered 'casual', actually still spends a boatload of cash. Yeah keep the hardcore, but there's no reason to me not to target casuals more and more going forward as I feel that is a larger money pool to tap. Right now they are just spending all their money elsewhere, given that Microsoft has computers, tablets, phones and console it seems to me they are in a good position to try capture this type of consumer.

Joker has hit the nail on the head with his post .........my nieces and nephews spend nearly all the pocket money on small micro transactions on there tablets and smart phones .
They each get £10 a week not for doing nothing they have jobs they have to do around the house if they want there pocket money .
Three of them are old enough for this that's £1560 a year between three children nun are teens yet .

That's more than most of my Xbox life buddies spend a year on multi player games ........think about it three kids spending that much money its like your hardcore gamer buying 39 full price games a year .
Both Sony and Microsoft would be mad to not try and get a piece of that pie as well as giving the hardcore gamer there core multi player gaming fix.

The worlds a changing change with it or get left behind stuck in a old business model watching your business go down the drain.
 
chromecast for 35 dollars might be the cheapest way if you actually dont have netflix, but i'd imagine most people have netflix on a dvd player or blu ray player already.

True, i hooked up a old used laptop for that when I found out that it was pay walled on the 360. When i get my ps4 the ps3 will take the laptops place.

are you gonna pay for online on the ps4? works out the same then.
 
chromecast for 35 dollars might be the cheapest way if you actually dont have netflix, but i'd imagine most people have netflix on a dvd player or blu ray player already.

are you gonna pay for online on the ps4? works out the same then.

Nope, netflix isn't paywalled afaik. The ps4 gives more out of the box value than the xbox one. In order to sweeten the deal for ps+ they hand out the "free" games and cloud backup etc.

Note that cloud saves are copies of your local saves that is done every night, so you can screwup a save game and retrieve it from the cloud..
 
I actually wasn't talking about PS3 users. Just the Xbox users who didn't like the Xbox Gold value proposition, but I'll respond since you've already brought it up.

Better than what? PS3 has been the lead Netflix platform in terms of tech deployment for a while. It had 5.1 audio first. It had 1080p first. It got SuperHD first. It got Max first. It got Profiles first. I value all those things more than Kinect integration (well, maybe not Max!).

Better than interfaces I've used: web browser, Android & Roku. I don't own a PS3 & have never used or seen its interface. I could care less about what devices got what features first, but I was enjoying playing movies using the official Netflix app on my 360 about a year before they started making it for other platforms. Hooray for PS3 winning the lead Netflix platform. :rolleyes:

And you are aware MS isn't actually creating these apps, right? Netflix built their app. Amazon built theirs. Even if the experience was superior it's still MS charging you money to use apps they didn't create to access services they don't provide. You can think it's worth eating the cost, but that doesn't mean a lot of people won't simply find that a skeezy business practice.

Why would I care who makes the apps? They are providing me a service that I feel is worth paying for. There is no eating the cost. I'm sorry you believe it's a "skeezy" business practice, but it's their platform & they believe they offer a better value such that they can charge for it. It's worked out great so far for them. I never thought Xbox One would change that practice. It's called competition & until people stop paying for Gold they will continue to do it. Nothing "skeezy" about that, just business. They're not doing it for charity.

Tommy McClain
 
Better than what? PS3 has been the lead Netflix platform in terms of tech deployment for a while. It had 5.1 audio first. It had 1080p first. It got SuperHD first. It got Max first. It got Profiles first. I value all those things more than Kinect integration (well, maybe not Max!).

And you are aware MS isn't actually creating these apps, right? Netflix built their app. Amazon built theirs. Even if the experience was superior it's still MS charging you money to use apps they didn't create to access services they don't provide. You can think it's worth eating the cost, but that doesn't mean a lot of people won't simply find that a skeezy business practice.

Making an Xbox 360 app isn't exactly a tutorial you can find on YouTube or in a book. Microsoft has dev support which developers can access to get help.

Regardless, trying to trace how your money is spent never works because its a business. They charge what the market can handle, not what it costs to make something, business 101.
 
From another thread

They want the XB1 to be centre of living room, regardless if your a gamer or not in the end.
I don't think paying so much on top of your other subscriptions, is the way for them to go about it.

I think the issue in terms of marketing a system like the XB1 is that there might be a disconnect between what MS thinks NEW customers are willing to pay for and what NEW customers are used to paying for. As somebody said either in this or another thread, MS is in the business of software as a service, which I agree with and it is a perfectly reasonable thing to want to do but the XB1 is really hardware as a service now that most of the advertised functionality is going to be hidden behind a fee. It goes Apple one better since it like MS is going to be able to charge people a fee for UI and system access. It's a bit like charging a monthly fee to use a windowed environment and a mouse :)

Of course many will jump at the chance to pay a fee to use the product but many will find it a bit disingenuous since you need to pay a fee just to change channels with the Kinect ( not the program guide just changing channels ) as a fer instance while you can use the kinect in a single player game for free. It's kind of like how cable companies strategically bundle channels together but instead of bundling channels MS is bundling functionality. Clever.

If MS is looking to make this system the ONE INPUT it is like putting a toll booth inside you living room. Before you could change channels and watch Netflix for free but now you need to pay for the privilege. How that plays with the NEW customers MS is looking to acquire I cannot predict but I don't know if they are going to be fans.

I don't wanna get into how cheap it can be since we don't know what a month or a year is going to cost when the XB1 comes out or a year after. I mean some people see a tv commercial and believe the idea that what is being hocked is a 100 dollar value and they are getting it for 1/2 the price but others won't. When making the buying decision some will see paying a fee for something that is free elsewhere as a problem others won't mind but I don't think cost + or - 10 or 15 bucks is gonna be a variable in that decision.

It's up to MS to sell it of course and with some new management they might pull it off without 180-ing on say Netflix and Hulu plus or some other thing that is hidden behind the paywall.

added: My assumption is that you can only play a single player game and watch a bluray movie for free and of course turn the thing on using the kinect. I am sure system access will be available to the controller for free of course.
 
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