Business Approach Comparison Sony PS4 and Microsoft Xbox

[astrograd]

That's because their message is inconsistent and contradictory. They've only themselves to blame when people try to join the dots and find the only solution that produces logic they recognise is to add some dots of their own . If you want people to trust you, don't go around giving different stories to different folk and changing your position.

Nonsense. Intelligent human beings are expected to connect dots that represent established facts or well established conclusions. When you start assuming the FUD spreaders are the only ppl telling the truth (against all reasonable evidence), the cognitive dissonance involved in such mental gymnastics isn't to be blamed on bad PR messaging.



Also, a note on the theories involving allocation strategies...consider the possibility that MS would anticipate PS4 to sell out in a given region. In that event, it serves MS well to have units on shelves in those regions and to make the retail presence strong enough to be capable of capitalizing on the lack of PS4's. Maybe they wanna make sure they can keep strong stock in places where they think PS4 won't be available.

 

[bkilian]

According to vgchartz (can we trust them?), PS4 preorders in USA are around 600,000, and XONE around 350,000 (updated to 24th August).

VGCharts is about as accurate as throwing darts at a board filled with random numbers. In fact, I think that's actually their method.

 

[SlimJim]

Nonsense. Intelligent human beings are expected to connect dots that represent established facts or well established conclusions. When you start assuming the FUD spreaders are the only ppl telling the truth (against all reasonable evidence), the cognitive dissonance involved in such mental gymnastics isn't to be blamed on bad PR messaging.



Also, a note on the theories involving allocation strategies...consider the possibility that MS would anticipate PS4 to sell out in a given region. In that event, it serves MS well to have units on shelves in those regions and to make the retail presence strong enough to be capable of capitalizing on the lack of PS4's. Maybe they wanna make sure they can keep strong stock in places where they think PS4 won't be available.

If people want a PS4, ie, if they planned to buy one, to find out it sold out. Do you really think they would settle for a Xbox1??

Or the other way around, imagine yourself: would you say: "Too bad the Xbox 1 is not available, ah hell, I'll just save 100 dollar and get myself the more powerful system, even though that doesn't have Alan Wake, Halo, Gears of War and Forza"
My guess is a big NO.

 

[Bagel seed]

If people want a PS4, ie, if they planned to buy one, to find out it sold out. Do you really think they would settle for a Xbox1??

Or the other way around, imagine yourself: would you say: "Too bad the Xbox 1 is not available, ah hell, I'll just save 100 dollar and get myself the more powerful system, even though that doesn't have Alan Wake, Halo, Gears of War and Forza"
My guess is a big NO.

Undoubtedly there would be some that would end up doing that, however small perhaps. Maybe PS4 RROD's 2 months after launch. Everyone may dump their PS4's and jump to Xbox, so good thing they had extra allocation

 

[Rangers]

If people want a PS4, ie, if they planned to buy one, to find out it sold out. Do you really think they would settle for a Xbox1??

Or the other way around, imagine yourself: would you say: "Too bad the Xbox 1 is not available, ah hell, I'll just save 100 dollar and get myself the more powerful system, even though that doesn't have Alan Wake, Halo, Gears of War and Forza"
My guess is a big NO.

I think they actually might. There's probably some substitution effect going on.

You know these two consoles are about the same thing to a lay person, just like you can argue PS3 and 360 are roughly the same thing.

Especially imagine for gift giving purposes.

It may not happen very often. But I think if one of these consoles is available this winter and the other is constantly sold out it will happen at least some.

 

[SlimJim]

The first (few) million(s) of consoles will be sold through pre-orders.
These are educated customers, not lay persons.
No way in hell that a person who chose PS4 will settle for an Xbox One.

 

[Rangers]

VGChartz have never proven to be reliable. They are not banned, but most here consider them useless.

I consider them something like an educated guess. As such, maybe better than an uneducated guess.

Case anybody is wondering they released their USA (?) hardware preorder numbers recently, it is 600k PS4 and 350k XB1.

 

[Rangers]

Rangers was using Sony's lack of preorder availability as proof as MS's supply.

No, more like just looking at what we know.

We cant really know demand from our end (though we can have an idea, too which I'm pretty sure PS4 is more in demand). We can only look and say this has supply this doesn't. I dont know if PS4 had 1m and Xbox 100k or vice versa or anything in between.

Additionally, it directly refutes the narrative that MS is desperately scrapping for units when they have preorders still available in the world's largest market and the other guy doesn't and this has been the case for weeks. Add that to all the other evidence such as, you dont add a pack in game (very popular one) when you dont have enough units to sell to meet demand in the first place. That doesn't make any sense.

So I guess it would at least be correct to say Ms does have more supply relative to demand (which is what really matters unless I'm missing something).

 

[SlimJim]

I consider them something like an educated guess. As such, maybe better than an uneducated guess.

Case anybody is wondering they released their USA (?) hardware preorder numbers recently, it is 600k PS4 and 350k XB1.

According to VGchartz:
USA Ltd: PS3 27.02 vs XB3 44.47.

Maybe XBox 1 will be MS's PS3? ie: sell only half of the previous generation.

MS needs to have the media on their side again. That is the best business approach imaginable.

 

[Rangers]

How much of a foothold does their delay in Benelux and Scandinavia and everywhere else give Sony? How will Ms compete in those nations once Sony already has a presence, or do you think Sony's headstart in those countries will be immaterial to long-term sales for XB1?

Probably the latter truth be told. It's just not likely to be that many units.

The 13 countries MS hit probably represent 90%+ of WW sales even for Sony I'd guess. It's a diminishing returns type of thing.

It's not a good thing obviously, but I doubt it hurts too much from a practical perspective.

Hell PS3 launched not until March 2007 in every country in Europe I just recalled. Just imagine what people would be saying had Xbox done that!

 

[SlimJim]

No, more like just looking at what we know.

We cant really know demand from our end (though we can have an idea, too which I'm pretty sure PS4 is more in demand). We can only look and say this has supply this doesn't. I dont know if PS4 had 1m and Xbox 100k or vice versa or anything in between.

Additionally, it directly refutes the narrative that MS is desperately scrapping for units when they have preorders still available in the world's largest market and the other guy doesn't and this has been the case for weeks. Add that to all the other evidence such as, you dont add a pack in game (very popular one) when you dont have enough units to sell to meet demand in the first place. That doesn't make any sense.

So I guess it would at least be correct to say Ms does have more supply relative to demand (which is what really matters unless I'm missing something).

I believe the 'problem' is your brand loyalty, no offence intended. For you to understand the logic, please clear your mind and look at it like this: Imagine Sony.

- None of the websites have 'sold out' of PS4 pre-orders.
- Sony announced : "The first million pre-orders will receive a free Uncharted game!"

--> It's possible that Sony is not happy with the fact that the pre-orders are low enough to not 'sold out' (=ran out? ) even, after months of being able to pre-order. So they pack in a popular game, in the hopes of people pre-ordering so that they will receive the free Uncharted title.

That is perfectly understandable, right?
Now, finally.. replace PS4 with Xbox one, and Sony with MS, and Uncharted with Fifa.
and your mind is telling you: "XBox will sell out, MS is only giving away free games because they want to reward us loyal fans" so that is how it works. I am the same btw, I only bet on the winning horse (at least in Europe (see? I only accept winning markets as relevant, this way, my console always wins)).

 

[AlphaWolf]

If people want a PS4, ie, if they planned to buy one, to find out it sold out. Do you really think they would settle for a Xbox1??

Over the holiday,. most definitely.

They are both going to sell out, so I don't think it's going to be much of an issue, other than how much of a premium you would have to pay on ebay.

 

[BoardBonobo]

You also have to factor in the fact that only 5 launch territories are actually getting a fully working console. Everyone else that can actually get an Xbone are getting a gimped console at launch that doesn't do everything it says it can.

But I guess that why they kept that bit in the small print!

IMO, Sony have reached a critical mass of positive word of mouth and MS have messed up enough to swing the post PS2 Xbox owners back into purchasing a PS4. That's why the pre-orders are the highest they have seen for 20 years. Not only are the PS3 faithful there but they have regained a large percentage of doubters.

I also think that MS are going to feel the pain for launching in such a minority of territories, not through hardware coverage but in terms of software recognition. Games like Titanfall are the poster child(s) for the XBone but by the time the rest of the world gets a look in, BF4, CoD et al will all be out and games like Titanfall will be more or less forgotten. That means MS will be competing with an established console using mainly multi-platform games which aren't going to look any better on Xbone than they on the PS4. But the Xbone is going to be more expensive. I can't see that is going to expand their market at all.

 

[wco81]

I don't know, lets say PS4 ships 2 or 3 times as many as X1.

But if the actual delta is a few hundred thousand, that is far from fatal for MS, though you assume that the early adopters willing to pay launch prices will decline in number as you move out from the launch.

That could mean the $100 difference becomes a bigger factor over time, if the price difference is maintained for a year or two.

 

[betan]

Except Panello already confirmed more than 3 languages are supported at launch. For the other countries in the launch window which don't have official support, you'll still be able to choose a language. They just likely don't have support for all dialects/accents for those countries and hence can't officially support it in those countries.

Regards,
SB

So, for how many languages "Xbox on" works?
3? more than 3? more than 5?

 

[AzBat]

I thought it was suppose to be all about the games? Now that it has the games(& pretty decent ones at that) we'll just find something else to complain about.

Tommy McClain

 

[Tchock]

IMO, Sony have reached a critical mass of positive word of mouth and MS have messed up enough to swing the post PS2 Xbox owners back into purchasing a PS4. That's why the pre-orders are the highest they have seen for 20 years. Not only are the PS3 faithful there but they have regained a large percentage of doubters.

I also think that MS are going to feel the pain for launching in such a minority of territories, not through hardware coverage but in terms of software recognition. Games like Titanfall are the poster child(s) for the XBone but by the time the rest of the world gets a look in, BF4, CoD et al will all be out andgames like Titanfall will be more or less forgotten. That means MS will be competing with an established console using mainly multi-platform games which aren't going to look any better on Xbone than they on the PS4. But the Xbone is going to be more expensive. I can't see that is going to expand their market at all.

Sounds more like a vocal minority with a chip on their shoulder trying very hard to partake in wishful thinking and confirmation bias

 

[Shifty Geezer]

But if the actual delta is a few hundred thousand, that is far from fatal for MS...

Last gen proved a ~10 million headstart isn't fatal. Recycling the old adage, it's a marathon, not a sprint. If XB1 has more appeal due to its differences, it can outsell its rivals.

I thought it was suppose to be all about the games? Now that it has the games(& pretty decent ones at that) we'll just find something else to complain about.

Clearly XB1 isn't all about the games - the experience and UI is a part of its value proposition. That that isn't working properly is going to harm MS launch somewhat. If it doesn't at all, and people don't care one jot about the voice control, than that sadly undermines XB1's USP and suggests MS made the wrong choice. Furthermore, if it was just about the games than MS's strategy would be a head-to-head competition with a cheaper rival with quite a few of the same games. MS's justification for XB1 would then be its exclusives and nothing else. That again suggests typical gamers would favour the cheaper PS4.

So it's everything on top of the games that matters to XB1! It's what MS's entire console business strategy for the next 5+ years (probably) relies on.

 

[TrungGap]

I believe the 'problem' is your brand loyalty, no offence intended. For you to understand the logic, please clear your mind and look at it like this: Imagine Sony.

Now imagine MS has yield problem the camera module. Seeing they will loose out to Sony. They decide to grab as many small victories as possible...in small countries where sales volume won't be a problem. This way the can tell their investors of their victories.

Now replace MS with Sony and replace Yield problem with the camera module with sourcing problem with ddr5.

See I can come up with equally absurd scenario, too.

 

[Rangers]

Last gen proved a ~10 million headstart isn't fatal. Recycling the old adage, it's a marathon, not a sprint. If XB1 has more appeal due to its differences, it can outsell its rivals.

Maybe it's not fatal but is Sony truly pleased with PS3's end result after giving X360 a headstart, especially compared to PS2 and pre-gen expectations? I doubt it.

So one could still attach importance to it.