Business Approach Comparison Sony PS4 and Microsoft Xbox

Huh? SNES, N64, Sega Genesis and the PS1 all launched in NA during an August-September time frame.

18+ year old console launches hardly apply anymore. Since then, all consoles have launched in November with the exception of the PS2 (October 26, but close enough). Japan also no longer gets favored by a few months anymore.
 
I don't think so. Corporations are financially driven, losing money to drive out competition may seem good on the face, but it would be hard to move that back to profitability. Shareholders reward profit and short term profit always looks better than long term potential especially to the hedge funds that drive share price and that's what creates 8 figure executive bonuses.

How can you say that when MS has lost 7+ billion on Xbox since 2001 and yet still keeps rolling on...

They are in it for the long haul and they would GLADLY take another $5-10 billion loss over the next 7 years to knock Sony out of the business forever IMO.
 
Listen guys, as a core gamer I'll totally admit that I wish MS had stuck in another 6 CUs and used GDDR5, but chances are what they've done is "good enough" to deliver next generation gaming experiences. They've likely cut enough corners that they'll be able to afford to include Kinect 2 and achieve price parity or better with PS4.

I'm just pointing out what they're doing, not necessarily endorsing it.

If Sony is right and they can make significantly better gaming experiences on PS4 than MS can on X1 and people care enough, then MS made a bad gamble.

On the other hand, if most gamers don't see the difference and MS can deliver a cheaper box than Sony, then Sony is in trouble, especially since they are banking on mainly game revenues.

The reality is that Sony can't afford another debacle like the PS3, money wise. The more price pressure MS puts on them, the more likely it is that they'll have to wave the white flag.

If you walked up to the top brass at MS and said pick one of the following next-gen scenarios:

1) MS and Sony both lose $5 billion in the gaming market.
2) MS makes $10 billion in the gaming market and Sony makes $5 billion.

They would all chose 1) over 2)

It would drive Sony out of the market.


That's the thing.

It isn't so much that Sony came out with uber hardware and simply caught MS off guard. MS mailed it in hardware-wise.

As to the last point WRT how much money they are making/losing: MS was currently making over $1B annually in xbl fees alone.

1B every year.

This number was (emphasis on past tense) a growing number.

This number is also not factoring in game sales, hardware, & peripherals.

***
The biggest thing this $1B/yr number is not factoring is the huge potential ad revenue from display, search, and market research on TV ads. (not to mention the encouragement of people to watch live TV, and hence inability to skip commercials in the first place).

All of the above adds up to MS not hurting for money with the current generation in which they went all in on hardware (GDDR + ~250mm2 GPU + 150mm2 CPU), sold the baseline spec for $300, and lost $100-200 per console (at launch).

For xbone, they invested little in the hardware (DDR + 120mm2 GPU + 80mm2 CPU) and knew full well they would come up weaker than ps4. Now either they knew they would lose their base that expected xbox to provide a premium gaming experience, or they figured their base would be too stupid to know the difference.

Either way rubs me the wrong way & either way will see those lucrative $50/yr xbl subs in decline as more people like myself don't like what they see.

I'll be sure to do my part in making everyone I know aware of the cut corners in xbone and the alternatives.

BTW - None of the above even touches on their new anti-consumer policies.
 
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About second hand and "always online" in Xbox One:

As fun as it was to chat with Davidson about all of the fun stuff, I had to ask him about some of the day's unfolding controversies. First, I asked about used games, and received this somewhat cautious response: "Here's what I can tell you. We'll support used games, so if you buy a game and re-sell it to EB Games, you can go buy a used game and it will absolutely work on Xbox One. Regarding usage rights and pass-on and all of those things: E3. It's very gamer news focused, so you'll see that at E3."

I also asked about the Xbox One's rumoured requirement to be online at all times. "It is internet-required, basically, but we won't disable your console if your internet goes out," Davidson explained. "So if you're playing a game, especially if it's a single-player offline game, or you're watching a Blu-ray or DVD, or you're watching content you already downloaded, any offline experience that you would assume will work. That said, the majority of the experiences really are cloud-powered."
http://www.smh.com.au/digital-life/...-davidson-talks-xbox-live-20130529-2na3g.html
 
That's the thing.
.....


you have no idea how much all the hardware in that box cost MS, there are parts in there you are not even factoring in (SHAPE, ERAM), not to mention, the R&D, Kinect complete revamp, the software and engineering costs ... to say they "cut corners"..


and this Sony uber box people keep talking about will have the exact same games for the most part looking nearly identical except to people who can casually tell the difference between 900p/1080p from 12' away or several fps lower but still over 30
 
you have no idea how much all the hardware in that box cost MS, there are parts in there you are not even factoring in (SHAPE, ERAM), not to mention, the R&D, Kinect complete revamp, the software and engineering costs ... to say they "cut corners"..


and this Sony uber box people keep talking about will have the exact same games for the most part looking nearly identical except to people who can casually tell the difference between 900p/1080p from 12' away or several fps lower but still over 30

You're missing the point.

The kinect periphery is not there for you to enjoy games (see mandatory connection). The kinect periphery is there to collect data and target ads at you.

So in what manor should these costs even be considered as a burden the consumer should pay for?

edit- and as for the "sony uber box" as I said, it isn't. It is a reasonable reduction in cpu silicon while still dedicating ~200-250mm2 to the gpu. And the fact they went all in with gddr5 helps solidify their commitment to providing a premium gaming experience.
 
You're missing the point.

The kinect periphery is not there for you to enjoy games (see mandatory connection). The kinect periphery is there to collect data and target ads at you.

I think bkillian's explanation about collected data by Kinect was very clear.
 
I think bkillian's explanation about collected data by Kinect was very clear.

What is also very clear is the possible data that such a device can be used to collect whenever the dollar-signs-in-their-eye suits decide they would like to turn on by default "...and let the user opt out if they so desire".

If the device were not mandatory to hook up to the internet and also mandatory in every box, this would not be a concern.
 
If the device were not mandatory to hook up to the internet and also mandatory in every box, this would not be a concern.

the same as every laptop, tablet, and phone in the world...

I know, I know, bubu those dont record and track you (neither does Kinect)! Or something.
 
the same as every laptop, tablet, and phone in the world...

I know, I know, bubu those dont record and track you (neither does Kinect)! Or something.

If you bought a laptop/tablet/phone and it would not work unless it was hooked up to the internet and had the camera working and pointed at you, then yes, that would be reason to be suspicious.
 
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If you bought a laptop/tablet/phone and it would not work unless hooked it was hooked up to the internet and had the camera working and pointed at you, then yes, that would be reason to be suspicious.

Kinect will work even if it is not pointed to you, just turn it to the wall. And it will work off line too.
 
You're missing the point.

The kinect periphery is not there for you to enjoy games (see mandatory connection). The kinect periphery is there to collect data and target ads at you.



What did I just read.... tin foil hats what?

now you just look to be saying shit to get people to engage with you... I'm tuning this channel out, thanks
 
If you bought a laptop/tablet/phone and it would not work unless it was hooked up to the internet and had the camera working and pointed at you, then yes, that would be reason to be suspicious.

because, i really want my phone (and laptop) to work offline :rolleyes:

And I dont really know if some nefarious hacker turned my phone cam on and I dont know it. I just assume that doesn't happen because well, I'm reasonable in that respect.

I could say something stupid like "but my phone could spy on me everywhere! That makes the phone uniquely dangerous! At least Kinect is only in one room of my house!".

I mean, if I was being dumb.
 
What did I just read.... tin foil hats what?

As I said, if the device were not mandatory in every box (as has been said previously, every game requires it to be used) and the box were not mandated to connect to the internet, then this would not be an issue. As is, this is a marketers dream box.

They can not only tell how many people are in the room, but whether they are watching and whether they are "enjoying" what they watch.

This is all beside the point though.

Bottom line is that the game hardware in the box is severely hampered in comparison to the competition and as a business decision, it was a foolish one which will most likely cost them considerably more than the extra 6cus + ram would have.

But you know ... suits with dollar-signs-in-their-eyes can't see too clearly.
 
As I said, if the device were not mandatory in every box (as has been said previously, every game requires it to be used) and the box were not mandated to connect to the internet, then this would not be an issue. As is, this is a marketers dream box.

Do you has a link? because it is unknown.

And again, Kinect can work offline and the system will allow you to turn off the camera.
 
It was stated by BK that every game tie in with kinect.

Kinect will be there if devs want to use it, but some developers, like avalanche, said they will use it only if it makes the experience better, and it looks like they are not required to use Kinect.

EDIT:

"If it makes the experience better, we’ll definitively support the Kinect and TV functionality," adds CCO Christofer Sundberg. "We have a few ideas at this point, but will only implement them if it adds to the core experience rather than take away from it."
 
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