Business Approach Comparison Sony PS4 and Microsoft Xbox

[temesgen]

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.

Patcher said as much on Gametrailers and I agree, I don't expect the price to stay that high but with that said what is the right price for an all in one device? If IP TV was viable service with access to the sporting events I want and the ability to get the channels I want al a carte I'd be all over a XB1 even if it was slightly more expensive than PS4.

On the Bonus Round again on Gametrailers they did a panel and part of the discussion was on subsidies tied to internet or cable which sounds interesting. If they can get the price down or bundle it in with other services that people already want they have a chance.

 

[Johnny Awesome]

They have a chance? LOL. Seriously? Some of you guys need to listen to yourselves.

MS is poised for success. The only question is whether or not they are going to sell 50 million, 75 million, or 100+ million units of Xbox One. Same goes for Sony with PS4.

Any time MS wants they can drop price, change DRM policies etc... Sony is basically stuck with no standard camera or motion gaming for the next 7+ years. I think MS made the better choice.

 

[Jwm]

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....

Not kidding. My 67 year old dad has pre-ordered one for the Tv features, he is hoping it will be easy to use for my mother who is constantly having issues. She now uses kinect to find the shows to watch on netflix. I tried to get him to go 7MC but their house is poorly wired for cable. I am not dropping my media center setup though, but I am curious to see how he gets along with the setup.

They learned of the one by the dashboard ads. Not a representative sample, but I was pretty shocked when I found out today. He did the full order process directly on the 360. I played with the preorder deal on the dahsboard and it seems smart.

 

[Tap In]

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....

I didn't say just to wave at tv, games and the other stuff... and Pachter supposes MS has subsidizing deals in process with IP providers


they will sell millions regardless if everyone is claiming E3 2013 is the day the xbox died.

 

[Tap In]

Not kidding. My 67 year old dad has pre-ordered one for the Tv features, he is hoping it will be easy to use for my mother who is constantly having issues. She now uses kinect to find the shows to watch on netflix. I tried to get him to go 7MC but their house is poorly wired for cable. I am not dropping my media center setup though, but I am curious to see how he gets along with the setup.

They learned of the one by the dashboard ads. Not a representative sample, but I was pretty shocked when I found out today. He did the full order process directly on the 360. I played with the preorder deal on the dahsboard and it seems smart.

yea I went to GS as I wanted to give my local guys the business but man was I tempted to do the release day delivery order through Xbox live.

 

[Cyan]

Forbes, which have always been finding fault with Xbox One as of late, wrote a very interesting article on the ways Xbox One can have a chance against the PS4.

Microsoft are going to need the advise and listen, imho.

http://www.forbes.com/sites/danieln...n-fight-back-againstthe-sony-playstation-4/2/

 

[temesgen]

Forbes, which have always been finding fault with Xbox One as of late, wrote a very interesting article on the ways Xbox One can have a chance against the PS4.

Microsoft are going to need the advise and listen, imho.

http://www.forbes.com/sites/danieln...n-fight-back-againstthe-sony-playstation-4/2/

Winning will likely mean something different moving forward than selling more consoles which is how people on the internet seem to define it anyway.

From a strictly sustainable business model it makes more sense to identify the segment of the market that will spend the most money with you and exert resources trying to optimize margins from there. Focusing on market share and install base should be secondary.

 

[Cyan]

Winning will likely mean something different moving forward than selling more consoles which is how people on the internet seem to define it anyway.

From a strictly sustainable business model it makes more sense to identify the segment of the market that will spend the most money with you and exert resources trying to optimize margins from there. Focusing on market share and install base should be secondary.

Too late -06;48AM- too tired to write something meaningful. But...

By that you mean something like what happened to Wii, for instance? Lots of sales, the winner of the generation but... not something you'd define as quality sales?

 

[Johnny Awesome]

Exactly.

MS wants people who are willing to spend money to buy the Xbox One. That's why they don't care about $499. Especially for launch. They'll run out of units anyway. I think Sony made a big mistake with $399 and no PSEye.

 

[eastmen]

Forbes, which have always been finding fault with Xbox One as of late, wrote a very interesting article on the ways Xbox One can have a chance against the PS4.

Microsoft are going to need the advise and listen, imho.

http://www.forbes.com/sites/danieln...n-fight-back-againstthe-sony-playstation-4/2/

MS just needs good exclusive games , good content for the big games like cod / battlefield and the like and they need to make sure the features they have are as polished as possible

 

[Johnny Awesome]

One thing is for sure:

If the PS4 is 50% more powerful than Xbox One, E3 is not demonstrating that AT ALL.

The reality of game development is that outside of a few key Sony exclusives, the graphical difference between the systems isn't going to be noticed much IMO, and likely not until long after both systems have traction in the marketplace.

 

[bbot]

Kingdom Hearts III and Final Fantasy XV coming also to Xbox One. As long as these two games are coming to Xbox One, I prefer Xbox One. I thought Nomura would never agree to develop for Xbox One. It almost seems like a miracle,

 

[eastmen]

Kingdom Hearts III and Final Fantasy XV coming also to Xbox One. As long as these two games are coming to Xbox One, I prefer Xbox One. I thought Nomura would never agree to develop for Xbox One. It's almost seems like a miracle,

I never played a kingdom heats but 3 on the one will be the first I buy. I love Disney but don't really care for square games. But hey you only live once.

 

[XpiderMX]

One thing is for sure:

If the PS4 is 50% more powerful than Xbox One, E3 is not demonstrating that AT ALL.

The reality of game development is that outside of a few key Sony exclusives, the graphical difference between the systems isn't going to be noticed much IMO, and likely not until long after both systems have traction in the marketplace.

I don't know but I'm seeing Xbox One games more impressive than PS4 games, take a look to Knack for example: http://www.youtube.com/watch?v=aL-Acg65Qzk

 

[Nisaaru]

One thing is for sure:

If the PS4 is 50% more powerful than Xbox One, E3 is not demonstrating that AT ALL.

The reality of game development is that outside of a few key Sony exclusives, the graphical difference between the systems isn't going to be noticed much IMO, and likely not until long after both systems have traction in the marketplace.

UBI's Tom Clancy Division gameplay video looked the best to me and that was allegedly from the PS4. Sure, no proof of any visual reflection of the performance difference but then who would expect that for the first titles anyway?

 

[wco81]

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)

You don't know what the masses want. Neither does MS, or the Surface would be selling a lot better.

Even if the Xbone sells well, it doesn't mean the anti-consumer DRM policies are right.

 

[SlickShoesRUCrazy]

One thing is for sure:

If the PS4 is 50% more powerful than Xbox One, E3 is not demonstrating that AT ALL.

The reality of game development is that outside of a few key Sony exclusives, the graphical difference between the systems isn't going to be noticed much IMO, and likely not until long after both systems have traction in the marketplace.

The division was running on the ps4 and to me looked graphically better then anything shown on the xb1.

 

[Jubei]

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



...

Sonys instructional video on used games also reached the number 1 spot on youtube. Thats a lot of hits

 

[pc999]

I think Sony made a big mistake with $399 and no PSEye.

I agree.

 

[NavNucST3]

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.

This is just not correct. Yes, the 360 had production issues which didn't ease until March/April but the PS3 was readily available just after Christmas and the same for the WiiU. Neither of those went 6 months in "effectively sold-out". I do think that letting the price be known now has some advantages.