Business Approach Comparison Sony PS4 and Microsoft Xbox

I think only gamestop really cares in the united states.

Target would be fine selling cardboard and getting $5 bucks a pop for them. Think about how many game cards you can fit in the same space as a single copy of a game. 10 or 15 of them I'd think or very close to it. Then there is no need for the security set ups they have now. Since the cardboard is worthless .

I think towards the end of the generation a lot of big stores will have these for the xbox one while stores like gamestop will still stock discs

The people that opt for these game cards will simply go DD and ignore these cards altogether, so in that case the stores like Target will still need to stock some disks.
 
For PSPGo, they let the main PSP market -- the Japanese gamers -- convert UMD games to digital ones. So technically it's possible. In US, they skipped the services perhaps not worth the effort.

For PS3, we will have to look at their Gaikai service for allegedly PS3 b/c. Technically, future proofing doesn't really matter if it's the digital or disc version of TLoU. It's the run-time, like CPU and GPU, that makes more differences. Business challenges (e.g., licensing, cost factors) may also affect future proofing.

this sounds worse than what ms is doing. At least at th start of the generation before you even buy the console ms tells you whats up. Sony just decided to screw the us market (Europe too ?) when introducing an update to a system.

As for gaikai i'm now going to have to pay again for games I own ?
 
The people that opt for these game cards will simply go DD and ignore these cards altogether, so in that case the stores like Target will still need to stock some disks.

Gamestop has game cards for live , psn , facebook and certain games. They sell dlc in store also and some live games.

Target does the same.


Not everyone wants to have a credit card tied into some online account. I know I don't link my card with live or psn
 
If MS had just revealed the One without any optical drive or ability to play physical media, all this DRM discussion wouldn't have happened. But there would have been an equally large revolt over the fact that everything needs to be downloaded and people don't have the bandwidth to do that. So pick your poison.

Quoted for truth.

Neither MS nor Sony can afford to be DD only now in 2013 but when the moment comes they will be ready for sure.
 
Want to know what happens to a system that gets 60%? of its sales digitally? You get the Vita and stores are barely pushing that handheld as is.
 
If MS had just revealed the One without any optical drive or ability to play physical media, all this DRM discussion wouldn't have happened. But there would have been an equally large revolt over the fact that everything needs to be downloaded and people don't have the bandwidth to do that. So pick your poison. I fully expect that within 5 years, we'll see a One refresh that doesn't include a BR player and is strictly a DD only console.

I beg to differ. People would have been complaining about the lack of optical drive and the consequences coming with it
 
Gamestop has game cards for live , psn , facebook and certain games. They sell dlc in store also and some live games.

Target does the same.


Not everyone wants to have a credit card tied into some online account. I know I don't link my card with live or psn

I'm trying to make a point that Target won't "only" sell "cards".
 
Its interesting that the big publishers (EA,Activision, Ubi) are silently backing Xbox One DRM system only behind the scenes and letting MS take all the hits publicly. I wonder if MS execs are oblivious to the fact they are taking all risks and could be hung out to dry with little or no exposure to the publishers. Curious if we will see anything from the publishers or if they're gonna run away. For various reasons, DRM being one, it is feeling like PS4 is going to atleast start out as a more successful console.

A few scenarios of various likelyhood.

1. Xbox One is an average to below average successful console, due to DRM, pricing loss of early momentum, etc.. Publishers move away from any type of exclusive support. Ports are technically half-baked. MS was hung out to dry. The Next-Next gen is mostly digital distro. DRM gets implemented anyway.

2. Xbox One (EA,Activision,Ubi) games are cheaper.

3. Large publisher(s) boycott PS4.

4. Sony loses exclusive content, or some content is free on One.

5. MS dumps DRM before launch.

6. Xbox One gets games first.

The last thing publishers want to is turn MS or Sony into the next Apple so I don't think you'll see either platform get overwhelming support from publishers. It's just not in their interest. I think we'll see publishers form partnerships where they think it makes sense so for now its possible we'll see some FPS/TPS releases come first to XB1 in exchange for money. That could change pretty quickly however if the core moves to PS4 and in any case most of the software will eventually appear on both systems.
 
People don't care about re-selling 99 cent games. They finish it and onto the next cheap game. There's also little incentive to pirate it, even if it was easy to pirate mobile games or apps.

There are a lot of people pirating mobile games.
 
It begins ?
http://www.digitimes.com/news/a20130611PD207.html

The upstream supply chain reportedly has already started shipping orders for the PlayStation 4 (PS4) in June, and volumes may reach one million units per month by September for the year-end holidays. Meanwhile, volume shipments for Microsoft's Xbox One are expected to start in the third quarter, according to sources from the upstream supply chain.

The PS4 reportedly is manufactured by Foxconn Electronics (Hon Hai Precision Industry) and the Xbox One by Pegatron Technology ...
 
I've heard that theory too....
That the big publishers are going to somehow eschew or avoid the PS4, or make some kind of stand against it.

But that's not going to happen, because gamers are speaking quite loudly, and frankly, publishers have no choice but to go where the gamers go.

That's how it works.
 
This might not bode well for those like myself hoping for a subsidized version of the Xbox One...

Paul Thurrott said:
Back in March, I was told that Microsoft would offer two versions of the Xbox One console: The delivered $499 version and a second version that would cost $299 and require a two-year Xbox Live Gold subscription costing $15 per month. Before the May reveal, I was told that the second, subsidized version was not happening. (My guess why: Because the Xbox One pretty much requires an Xbox Live Gold subscription anyway, and that was like throwing away $200.)

http://winsupersite.com/xbox/how-microsoft-can-fix-xbox-one

So with MS putting everything behind the Gold paywall again, it seems that most will likely pay for Gold anyway. Which means there's no reason for them to subsidize the XB1 with a Gold subscription. Unless of course they had a more expensive tier, but they would have already announced that. Sounds like we'll need price competition to bring down the XB1.

Tommy McClain
 
Its interesting that the big publishers (EA,Activision, Ubi) are silently backing Xbox One DRM system only behind the scenes and letting MS take all the hits publicly. I wonder if MS execs are oblivious to the fact they are taking all risks and could be hung out to dry with little or no exposure to the publishers. Curious if we will see anything from the publishers or if they're gonna run away. For various reasons, DRM being one, it is feeling like PS4 is going to atleast start out as a more successful console.

Forgive me if this has been postsed

http://www.polygon.com/2013/6/11/4421314/electronic-arts-talks-drm-and-used-games

The narrative I've heard is that EA lobbied hard to have the hardware companies come up with a solution so you guys are not faffing around with online passes and you're not losing potential used game profits to retailers.

Moore: "Absolutely incorrect. As the guy who is the chief operating officer of Electronic Arts I can tell you that EA did not aggressively lobby for the platform holders to put some gating function in there to allow or disallow used games. I am on record as being a proponent of used games. I like the ecosystem. I like the fact that it's kept pricing at a good level for eight years. I like the fact that someone can buy a physical game and see some equity in that game. That keeps GameStop vibrant and they are a great launch and marketing partner for us.

"EA has never had a conversation, and I have been present at all of them, with all of the manufacturers, saying you must put a system in place that allows us to take a piece of the action or even stop it. Absolutely incorrect."
A few scenarios of various likelyhood.

1. Xbox One is an average to below average successful console, due to DRM, pricing loss of early momentum, etc.. Publishers move away from any type of exclusive support. Ports are technically half-baked. MS was hung out to dry. The Next-Next gen is mostly digital distro. DRM gets implemented anyway.

2. Xbox One (EA,Activision,Ubi) games are cheaper.

3. Large publisher(s) boycott PS4.

4. Sony loses exclusive content, or some content is free on One.

5. MS dumps DRM before launch.

6. Xbox One gets games first.

7. PS4 sells a bunch of consoles because it's cheaper and plays all the games you want :)

Just saying there is a slim chance that consumer will actually like the product and like the choice to do whatever they want with this plastic disc with a game on it.

If these points have been made again :oops: but people in general are risk averse and don't like the idea that stopping them from doing what they want with the product they bought.

Yeah you can berate them and say "even though you have been able to buy and sell used for decades and CD's, DVDs, BDs and all other media that comes on some form of media can be bought and sold BUT you REALLY don't own THAT piece of media and you cannot resell it." With Redbox and Gamefly and Netflix (still) you can rent media and play it but with the XB1 forget about it.

That is the buzzsaw MS is hitting. People aren't stupid, used game prices are an important consumer signal. Allowing a locked up ecosystem without much in the way of choice really isn't the best solution. How is your cable company treating you ??:devilish:
 
$299 and $15/month for 2 years doesn't seem like a good deal when a 12-month Gold subscription is only ~$45.

Officially it's $60/year, but you do make a point that they had to artificially raise the Live monthly cost to cover the cost of the hardware. At $15/month that would add $240 more than what Live costs at $5/month. So they could sell the XB1 at $300 + $15/month for 24 months, which would cost $660. That's versus the console @ $500 + $120(24 months of Live @ $5/month) or $620 unsubsidized. That's something I could stomach especially since Live Gold is good for both the 360 & XB1.

Tommy McClain
 
The things is is that the consumer market already supports this same market condition - in the billions of devices. iPods, tablets and phones are download only. You HAVE to have a connection to do anything at all with these devices.

Well music has been DRM free for quite some time. I think consumers like DRM free and will pay for it it seems. Yea for competition. Downloadable video products have competition. Where is the competition when a locked down, publisher controlled system loses the one restraint left on setting a price that they don't want set ?
 
Well music has been DRM free for quite some time. I think consumers like DRM free and will pay for it it seems. Yea for competition. Downloadable video products have competition. Where is the competition when a locked down, publisher controlled system loses the one restraint left on setting a price that they don't want set ?

you get a different system ? or go pc ?
 
Maybe this has been said before, but it seems likely to me that MS wanted DRM more for themselves than for the publishers. Last I read the royalty is ~$20 per copy, MS has just as much to gain from blocking used sales as any publisher.
 
wouldnt that $20 be down to a clause in the xb1 dev tools
If you could somehow make a game without them you wouldnt have to pay the royalty
remember activision vs atari (if ive got that right)

ps: while checking activision vs atari I found this damm sneaky, but very clever in a way :

Nintendo designed a program, the 10NES, for its Nintendo Entertain System (NES) to prevent the NES from accepting unauthorized game cartridges. The 10NES was programmed onto chips located in the NES console and in each game cartridge. Thus, only 10NES-enabled cartridges could “unlock” access to the NES console.

In early 1988, Atari applied to the Copyright Office for a reproduction of the 10NES source code, which the Copyright Office provided to Atari based on a false allegation by Atari that Atari needed the copy for pending litigation. There in fact was no pending litigation.

Based on the acquired source code, Atari developed its own program, the Rabbit program, which generated signals indistinguishable from the 10NES program and gave Atari access to the NES without Nintendo’s license conditions.
 
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