Business Approach Comparison Sony PS4 and Microsoft Xbox

[Rangers]

What bothers me is that Microsoft:
- Has room for a pricedrop
- Know they have a disadvantage: public opinion (DRM etc.)
- Know PlayStation brand is huge

And they wouldn't pressure Sony. Michael Pachter told in an interview today that he spoke to a key Sony spokesman and he said that Sony was shitting bricks hoping Microsoft wouldn't price the One at 399, because Sony really couldn't go lower than 399. Microsoft would then have the longterm advantage and shortterm advantage and overall value cause it's bundled with kinect. The bundling with kinect would also even out the difference in power I think.

agree. a lot of sony "dominating" e3 was just down to 399. The other part was the no-DRM but I think that was/is secondary really.

Microsoft just isn't going for the jugular at all. They really havent for years. If they were, they would have been using some of that Live moolah to subsidize hardware all this time. What a dumb company, really

they can still drop to 399, but no way they will. just too arrogant or set in their ways.

it should actually be find in nov/dec, the consoles will sell out then regardless. after that it could be an issue.

maybe in early 2014, when i imagine if supply is ok sony will be dominating npd because of 399, they drop. we'll see.

I said earlier that they need to SHOW people over the next 5 months why they are worth the extra $100

Hey, I know what can do that...things like more power, 16 GB RAM Get those things and you will sit smug, and hold all the cards.

Instead they're going to have to do it the hard way, if at all. Why are these companies dumb...

When you dont have power your only (unpalatable for you) option becomes cut the price. Nintendo learned this well in Gamecube era, and learning again with Wii U. That simple and I sorta think Xbone is already in that situation.

 

[blakjedi]

Many journalist, bloggers and industry experts agree that Sony had the best show and while the DRM and price are key to that interpretation the analysis offered also references games like The Order, InFamous, The Division, Killzone and the indy support. For the record I seem to recall some issues at MS's show too, in either case I don't recall seeing much written about those issues from either show.

The division is also on Xbox one. Sony didn't have the best show. They had the biggest megatons. The show itself wasn't good.

 

[Tap In]

The division is also on Xbox one. Sony didn't have the best show. They had the biggest megatons. The show itself wasn't good.

exactly form a gamer perspective Ms killed it and sony was lackluster and boring with not much content... the only good thing was there PR DRM pitch and good price

 

[Rangers]

The division is also on Xbox one. Sony didn't have the best show. They had the biggest megatons. The show itself wasn't good.

totally agree. the games for me were bigger/better from ms, as well as the pacing of their show etc was a million times better.

And it's funny how two days ago the media was "it's all about games, stupid MS!" and today they dont mention games (of which I thought MS showed better), it's all about price and DRM

But I know that's ripe for an explosion of controversy, just take it as an opinion and leave it be people I'm sure some thought the games were better from Sony's show.

 

[joker454]

Microsoft just isn't going for the jugular at all.

I'm not so sure about that. Just going for press hits is not the way to win the long term battle against the many predators that are out there (remember it's not just Sony they are competing with). They are fleshing out their software and hardware infrastructure along with new interfaces and technologies that will take time to pay dividends. Check back in 3 to 5 years then see what you think.

 

[Rangers]

I'm not so sure about that. Just going for press hits is not the way to win the long term battle against the many predators that are out there (remember it's not just Sony they are competing with). They are fleshing out their software and hardware infrastructure along with new interfaces and technologies that will take time to pay dividends. Check back in 3 to 5 years then see what you think.

i think they might do well and would not be surprised at all if if they "win" the next gen...I'm always aware Xbox sells much better than their internet sentiment would have you believe (even now, they are #2 on Amazon US, 399 PS4 sealed not getting #1, but by internet they shouldn't be in the top 1000)

Yet still, they're making it hard for sure.

It would be super easy to win, basically bleed some cash for market share. That's what I mean by not going for the jugular. Sony cannot match them if they want to spend some money.

$499 is the opposite of going for the jugular...so is 1.2 teraflops...

 

[blakjedi]

I'm not so sure about that. Just going for press hits is not the way to win the long term battle against the many predators that are out there (remember it's not just Sony they are competing with). They are fleshing out their software and hardware infrastructure along with new interfaces and technologies that will take time to pay dividends. Check back in 3 to 5 years then see what you think.

Piggybacking here... Kinect is actually the only revolutionary experience to be found this generation. Both XB1 and PS4 are made from fairly pedestrian pc parts. The fact that they are closed with unified memory gives them their potential to shine.

Other than that... what? Only the Kinect offers something new... I didn't feel like that before but have watched all four conferences and being wowed by puppeteer, killzone and knack... I feel like that's it for PS4. What else does it do?

MS has an answer for every feature in Sony's box. Not so the other way around.

 

[RudeCurve]

exactly form a gamer perspective Ms killed it and sony was lackluster and boring with not much content... the only good thing was there PR DRM pitch and good price

MS played their cards exactly as planned...SONY had pretty much nothing left to counter at E3.

i think they might do well and would not be surprised at all if if they "win" the next gen...I'm always aware Xbox sells much better than their internet sentiment would have you believe (even now, they are #2 on Amazon US, 399 PS4 sealed not getting #1, but by internet they shouldn't be in the top 1000)

As I keep saying over and over again money talks BS walks.

And it's funny how two days ago the media was "it's all about games, stupid MS!" and today they dont mention games (of which I thought MS showed better), it's all about price and DRM

Yeah AKA shifting the goal posts...

 

[Laa-Yosh]

Even PC parts can go a long way if you don't have to dumb the software down for integrated graphics cards and slow main memory and such...

 

[Lycan]

Well, considering how Sony has misguided everyone with the DRM part, I think most of those conclusions are wrong to at least some extent.

They certainly didn't. But feel free to develop...

And it's funny how two days ago the media was "it's all about games, stupid MS!" and today they dont mention games (of which I thought MS showed better), it's all about price and DRM

This coming generation will last till 2020 at least. We shall see who brings out the best games...

 

[Kb-Smoker]

totally agree. the games for me were bigger/better from ms, as well as the pacing of their show etc was a million times better.

And it's funny how two days ago the media was "it's all about games, stupid MS!" and today they dont mention games (of which I thought MS showed better), it's all about price and DRM

But I know that's ripe for an explosion of controversy, just take it as an opinion and leave it be people I'm sure some thought the games were better from Sony's show.

Two days ago DRM didnt matter? WTF! Where have you been?

While first party games matter to some. This isnt the wiiu we are talking about. Really people buy these console for third party games. Games are there for both system lets be real for a minute....

Both MS and sony has huge first party also...this is getting silly.

 

[Bagel seed]

MS is drowning in an online PR shitpool at the moment. A very poor interview by Don Mattrick here: http://www.gametrailers.com/videos/silmon/xbox-one-e3-2013--the-xbox-one-strategy--stream-

Some choice quotes

Keighley:"Did you know or did you anticipate the way the people would push back?"
Mattrick:"Absolutely - it's a super passionate community of people... till you use it [Xbox One] it's really hard to understand what all the advantages are."
__________

Mattrick: "Xbox has been created by gamers for gamers."
__________

Mattrick: "Fortunately we have a product for people who aren't able to get some form of connectivity, it's called xbox 360"
__________

Mattrick: "The avarage internet connection is working the majority of the day - people are imagining that it isn't... It's change. There was a point in time when people would say all i want my phone to do is make a phonecall."

...

 

[blakjedi]

MS is drowning in an online PR shitpool at the moment. A very poor interview by Don Mattrick here: http://www.gametrailers.com/videos/silmon/xbox-one-e3-2013--the-xbox-one-strategy--stream-

Some choice quotes



...

I can't see a single wrong answer there. Shrugs.

 

[Bagel seed]

First quote for starters. If it's really hard to understand why your product is awesome, why should I chose to buy it over its competitors? This is poor, poor PR that any suit should know.

 

[RudeCurve]

I can't see a single wrong answer there. Shrugs.

+1...in fact I think someone is trying a little too hard...

 

[Sonic]

He could have used more eloquence with his responses. It's kind of condescending to tell those without a stable net connection to look at the 360 instead.

 

[Bagel seed]

+1...in fact I think someone is trying a little too hard...

Barely breaking a sweat

Why not contribute to the discussion? Sorry if I'm making you feel annoyed but I find it interesting from a business perspective what's going on in MS heads right now. Clearly they want to push their platform as the way next gen gaming should head towards, but if they can't sell those advantages to consumers in a way that doesn't sound like a negative then a large part of the game is already lost.

 

[Tap In]

it sounds like it is not attractive to consumers because the only consumers following any news atm are the 2% hardcore. half of those would never have bought an Xbox in the first place anyway..


I'm pretty sure many are underestimating the allure to the masses of a top tier gaming system with excellent game support that can be sold as a voice and gesture activated living room device to run all media, games, apps and tv (and Skype on big screen HD living room)

 

[temesgen]

it sounds like it is not attractive to consumers because the only consumers following any news atm are the 2% hardcore. half of those would never have bought an Xbox in the first place anyway..


I'm pretty sure many are underestimating the allure to the masses of a top tier gaming system with excellent game support that can be sold as a voice and gesture activated living room device to run all media, games, apps and tv (and Skype on big screen HD living room)

Why would anyone other than a gamer spend 400 to 500 on the PS4 or XB1? Companies like Google and Apple are already struggling to get consumers to spend a fraction of that on these type of services and BTW they don't have a monthly fee associated with accessing the content - you pay as you go. I doubt my parents will be buying either platform anytime soon. WRT the masses, I doubt they are going to spend hundreds of dollars so they can waive at the TV instead of use the remote, especially if there is a monthly fee associated with accessing all the services. My wife, parents and friends who are not gamers will not be interested or buying any of these systems as presented.

I understand the direction that MS wants to go in I'm just not convinced that at this price it makes sense outside of the core gamer audience. And with that said they have done a pretty poor job of communicating the value proposition and how all this is going to work. I think the vision is likely there but the message is still in beta atm....

 

[bkilian]

Look at it in an economics way: Will they sell out at launch, and for the 6 months following, at $499? If yes, then it is not priced too high.
I firmly believe they will easily be able to sell every unit they can make for 6-12 months. Production will be the limiter, not price.

From an economics perspective, the 360, wii and PS3 (yes, even the PS3) were underpriced at launch, Supply could not meet demand. If we look at eBay, the correct launch price for those consoles was about $200-300 more than what they actually launched at.

I predict a special edition - like included game at the half-yearly point, and a price drop at the year, repeat as needed. This way you control demand to more accurately meet supply, and scalpers don't get a free lunch.