Business Approach Comparison Sony PS4 and Microsoft Xbox

[DrJay24]

blakjedi, I think you are missing something. People have their leagues with specific providers, like Yahoo. It doesn't matter what ads are blasting you on your XB1 desktop, people are not going to switch, at least not many. They have years of data and all their friends in a system, each year they just fire it up and go. Leagues don't move from provider to provider from scratch each year.

So why would people married to Yahoo buy a XB1 if it doesn't work with Yahoo?

 

[RancidLunchmeat]

Just a general vs point here, it's fairly amazing how much better off Sony will be this gen than last...

Launching at the same time instead of 1 year late (1.5 years in Europe)

Launching at 399 and $100 less instead of 599 and $200 more...

Hell, more powerful box in theory, vs a parity box last gen.

On paper at least, in theory, Sony should have this, EASILY.

Also, there's no Wii juggernaut this time around. MAJOR difference to last gen too, for both players.

On the other hand, last time around the PS3 was hyped as more powerful (even though that superiority was never demonstrated in any actual game), and both systems had different things going for them. The 360 had Live with all its great functions and features, but at a cost. The PS3 had blu-ray and free multiplayer, but was more expensive.

This time around, I see no advantages offered by the PS4. They both have paid multiplayer, they both have blu-ray. If the PS4 doesn't demonstrate a clear visual advantage in gaming, there's absolutely no benefit to the console except that it's cheaper than the more feature rich alternative.

 

[RancidLunchmeat]

blakjedi, I think you are missing something. People have their leagues with specific providers, like Yahoo. It doesn't matter what ads are blasting you on your XB1 desktop, people are not going to switch, at least not many. They have years of data and all their friends in a system, each year they just fire it up and go. Leagues don't move from provider to provider from scratch each year.

So why would people married to Yahoo buy a XB1 if it doesn't work with Yahoo?

What makes you think it won't "work" with Yahoo? I don't even know what that means.

As far as I can tell, the One is the only console that will allow you to play games and also check your Yahoo fantasy league at the same time. The deal with the NFL is for exclusive interactive contact and streaming updates. It doesn't matter what fantasy league you belong to, the NFL is providing live updates to official stats that will be used by all fantasy leagues, Yahoo included.

 

[blakjedi]

blakjedi, I think you are missing something. People have their leagues with specific providers, like Yahoo. It doesn't matter what ads are blasting you on your XB1 desktop, people are not going to switch, at least not many. They have years of data and all their friends in a system, each year they just fire it up and go. Leagues don't move from provider to provider from scratch each year.

So why would people married to Yahoo buy a XB1 if it doesn't work with Yahoo?

I'm in leagues in Espn and NFL.com. I think if the commisioners see a capability in an NFL.com supported fantasy league they could switch. Im not even arguing that people would buy an XB1 for fantasy league bundling...

But for those who may be inclined to switch or those who may be inclined to buy a new console, the advertising and bundling as well as exclusive interactive content and features are a definite draw. Otherwise why would the NFL even bother? It does everything it can to make money and gain exposure.

 

[Xenus]

And I wouldn't give you a cent for an anecdotal about launch inventories of a product that won't be shipping to retail for months. That's fanboy drivel, Sony and MS couldn't tell you how many they will have in the wild by November yet.

It's not fanboy drivel. It's verified at numerous gamestops that people were able to get people to talk. It's not number of preorders but number of preorders available that gamestop will guarantee available. Now it could be that Sony is just more confident in their ability to get out more units and of course it's subject to change or it could be Microsoft allocating more the Walmarts of the Worlds then the gamestops but it's real data.

 

[AlphaWolf]

It's not fanboy drivel. It's verified at numerous gamestops that people were able to get people to talk. It's not number of preorders but number of preorders available that gamestop will guarantee available. Now it could be that Sony is just more confident in their ability to get out more units and of course it's subject to change or it could be Microsoft allocating more the Walmarts of the Worlds then the gamestops but it's real data.

Do you really believe that Sony and MS have given retailers actual shipping inventory levels of a product that won't be shipping for months? If you say yes I have a few dozen bridges I'd like to sell you.

 

[tuna]

As far as I can tell, the One is the only console that will allow you to play games and also check your Yahoo fantasy league at the same time.

Can't you just look it up on your phone/tablet instead?

 

[James Car]

On the other hand, last time around the PS3 was hyped as more powerful (even though that superiority was never demonstrated in any actual game)...
This time around, I see no advantages offered by the PS4...

This is just a bit disingenuous.

The reasons for ps3 "technical superiority" not showing up in games had to do with very unorthodox hardware competing against an advanced, forward looking gpu in xb360.

This time around, they are almost exactly the same architecture, but with 50% more gpu compute resources on ps4, more general ram bandwidth (without copying data, taking up more bandwidth), and double the ROPs.

The performance difference will be difficult to ignore, not spot.

But as has been said multiple times, this performance deficit was expected by MS. In fact, they designed it with that expectation.

As to the business ramification of such a foolish decision, I can't wait to see NPD 6 months after release.

Let the gamers voice be heard.

 

[DrJay24]

What makes you think it won't "work" with Yahoo? I don't even know what that means.

As far as I can tell, the One is the only console that will allow you to play games and also check your Yahoo fantasy league at the same time. The deal with the NFL is for exclusive interactive contact and streaming updates. It doesn't matter what fantasy league you belong to, the NFL is providing live updates to official stats that will be used by all fantasy leagues, Yahoo included.

I wasn't talking about the stats, I was referring to the actual league, the group of players. I was under the impression the XB1 had official NFL.com league integration, not every other provider. Feel free to correct me if wrong.

 

[AlphaWolf]

Their deal is for exclusive interactive content, I expect they could make apps for any of the leagues. I don't know that they will.

 

[Xenus]

Do you really believe that Sony and MS have given retailers actual shipping inventory levels of a product that won't be shipping for months? If you say yes I have a few dozen bridges I'd like to sell you.

I believe they are given rough estimates. Corporate doesn't hand down emails for allocation numbers out of their ass. Let alone vastly different allocations for units based on numbers out of their ass. it could be Sony is just more confident in what they are telling the retailers to expect. but if you think retailers are pulling the numbers completely from their ass i have a bridge to nowhere to sell you. the estimates will be conservative but they get them.

Retailers aren't going to get a lot of business if they guarantee your preorder and then don't fulfill it for 6 months.

 

[Nesh]

Yeah. The idea that Final Fantasy, Metal Gear Solid, and Kingdom Hearts main offerings would come to an MS console pretty much tells the whole story about what publishers see going forward.

MG and Final Fantasy games came to XBOX since last gen. I dont know whats so surprising with this

 

[Laa-Yosh]

Everyone forgets about inflation with regards to the price.
http://www.usinflationcalculator.com/

$399 in 2006 is about the same as $460 today. The numbers don't look that nice in print, but the Xbox One offers some real value for this price if you consider that it has a Kinect and half a terrabyte of HDD compared, to the X360 Premium's 20GB and mono headset.
Then there are the features, the One can do a LOT more compared to its predecessor, it's not just about better looking games.

So this is not such a bad price in the US, and as others have already mentioned, people's tolerance levels for such devices have raised a bit in the past years.

And yeah, Sony is throwing away money, they could have sold their initial few million units for $450 just as well, but apparently wooing the E3 crowd was more important...

 

[Laa-Yosh]

MG and Final Fantasy games came to XBOX since last gen. I dont know whats so surprising with this

MGS 4 was not on X360 as I recall. MGS 5 on Xbox is a major change.

 

[Nesh]

You cant watch your home team on Sunday Ticket on PS3. Its only good for people who live in place, and root for a team in another, its a very small percentage of NFL fans.

EDIT:and what AW said, the MS/NFL deal is not about watching games...

What does the deal offer apart from these already offered?

Live Streaming Video of NFL SUNDAY TICKET games
RED ZONE CHANNEL®
Video Highlights
Scores & Game Status
Game and Player Stats
Standings and Full Season Schedule

The bolded arent what you need for a fantasy football?

 

[Rangers]

If they are selling more than they can produce at that price, then it's clearly fine, in fact arguably too low from an economics perspective.
The question shifts to will it cost them momentum once supply becomes readily available and how quickly can they drop the price without cutting their own throat.

I think the $100 is a big deal, but it won't have any effect for probably 6 months.

yeah i've made this point several times. these consoles will be going for well over retail on ebay for a while, probably.

every console sold on ebay over msrp is money the platform holder left on the table, since it's the true demand price.

however this will only hold for sure in nov and dec. two months. already in january price could come in to play.

looking at it if ms is struggling, they would probably cut to 399 in time for 2014 holiday.

 

[Laa-Yosh]

Oh how soon people forgot the $600 PS3 and how it still managed to sell out for the first few months with basically Resistance as the only launch game to care about...

 

[patsu]

What nextgen games were playable on the show floor in E3 ? None ?

 

[patsu]

Oh how soon people forgot the $600 PS3 and how it still managed to sell out for the first few months with basically Resistance as the only launch game to care about...

It also stayed stock out until Jan or Feb I think.

The key is how ready is Sony this time ? Because if they have enough supply and can sustain the momentum, they can market it aggressively.

 

[Nesh]

Everyone forgets about inflation with regards to the price.
http://www.usinflationcalculator.com/

$399 in 2006 is about the same as $460 today. The numbers don't look that nice in print, but the Xbox One offers some real value for this price if you consider that it has a Kinect and half a terrabyte of HDD compared, to the X360 Premium's 20GB and mono headset.
Then there are the features, the One can do a LOT more compared to its predecessor, it's not just about better looking games.

So this is not such a bad price in the US, and as others have already mentioned, people's tolerance levels for such devices have raised a bit in the past years.

And yeah, Sony is throwing away money, they could have sold their initial few million units for $450 just as well, but apparently wooing the E3 crowd was more important...

Purchase power parity is not equal in every region. Inflation is not caused by the same factors in every region, and income has not adapted equally to inflation in every region. And considering the huge economic crisis in many regions, people are more price sensitive than what they were before

MGS 4 was not on X360 as I recall. MGS 5 on Xbox is a major change.

We saw the release of other metal gears released on the 360 and MGS5 was already announced for the 360.
The change came before they even announced it on the XB1. It was not surprising and nothing unexpected to see it coming on XB1