Business Approach Comparison Sony PS4 and Microsoft Xbox

My wife had pre-ordered one, but she's been seeing the news and is totally confused now, she's asking me if we can still share games with her immediate family, niece, nephew, etc. I told her the only way now is to send discs in the mail around the country to share stuff. I had to explain to her how casuals like her are used to always being online whereas the "hardcore" gamer isn't, heck many of them don't even have reliable internet so sometimes companies have to cater to the low common denominator called the "hardcore" gamer and remove features. I don't know if she will cancel her pre-order or not yet but for her and typical casuals they are too forward thinking for consoles, I think she's better off just cancelling it and sticking to other more modern devices.
Nah, no need for her to leave MS bandwagon yet:
My wife want's an xb1 for the entertainment stuff so I pre-ordered one.

Entertainment stuff is intact as of yet.
 
In no particular order


Humans also have a bigger problem with being risk averse and obsessing over what they are losing in any transaction. Why wouldn't shouldn't they freak out a bit when every other thing under the sun including every other console game could be bought and sold at the consumers convenience.?

I agree. I perfectly understand and I am empathatic with the reaction by some. A lot of it is motivated by the lack of trust of MS and their obvious inability to educate the userbase to the benefits of their previously proposed sharing mechanism. All people got was, "Here is a what our new DRM entails." instead of "Here is why we have changed our DRM mechanism and the benefits we plan to offer."

keurig machines where 3rd part reusable cups are used off the top of my head.

I have my doubt that those $80-$250 coffee makers are sold near their BOM.

If 2 players share one game for the life of the game starting day one this will effectively halve sales during the most critical time of a game's release. Now of course it won't be a 50 percent drop in sales but there will be a loss in sales due to this arrangement.

Thats not a problem. The 2nd player may not invest in that particular title. But now they have $60 to use on another game. We all complain about sales being skewed to a particular set of genre and franchises. Sharing may widen the exploration of the library. "Hey Im going to buy COD, why don't you buy blah blah I heard its good".

So all the people ( or some obviously large portion ) who buy used games now will be the "freeloaders" ( because ... ?? :rolleyes: ) that will somehow be so bad as to piss off the other people who they enter the 1/2 off bargain with. These pissed off folks will start buying new games and not entering into any more 1/2 off bargains in such quantities as to offset, by some non-trivial amount, the remaining 1/2 price bargaineers ? I think the bad apples will be ejected fairly quickly and a new set of 1/2 off bargain transactions will take their place but that's me.

I hope something that allows for more money for devs.

They won't be free loaders. Buying a used title doesn't mean you are given access to a lesser experience just an older experience where the price is a reflection of less demand because a significant portion of the userbase have already experienced the title or basically chosen not to partake in said title.

(I going to hit you over the head right now. Here comes a car analogy.)

If we share a car garage full of sports car where we both can freely use any car. Both of our buying habits can change. If you are used to facilitating your own garage for your own use and you do this by buying older model cars, what happens when I join you and we share our collection? You are buying used cars to effectively broaden your collection. My presence and the opportunity we give each other may allow you to lessen your dependency on such strategy. We are both provided an expansion of our collection at no cost. And you aren't buying lesser autos just older autos but are just as capable, so its not like I am going to be averse to the your cars that I have never taken on the street or the track. Plus, because I'm basically helping you expand our collection, you might be more enticed to buy new autos as your dollar goes twice as far as I'm adding a dollar into the pot as well.
 
http://www.penny-arcade.com/report/...ames-with-ten-family-members-but-some-details

"So that answers one question: Microsoft doesn't seem to care whether or not the ten people in the group are actually family members. They can be friends, roommates, boyfriends, girlfriends, your dog's groomer… you pick ten people, and you share games with them. "
Thanks. That doesn't mention the 30 day requirement, nor did it clarify if how often your ten family members can change. But it reaffirms the point I was making. PA spoke to Phil Spencer, Vice President of Microsoft Studios, and he didn't know some of this stuff. It seems like the game library sharing idea was either new, or being hugely overhauled to the point that basic questions about usability couldn't be answered by high level Microsoft execs.

C'est la vie game library sharing :cry:
 
Honestly, there are just not that many advantages for MS and publishers if there is no twist with this strategy.

I don't understand some people logic.

Going by your logic, when you "buy" a PS4, you're only allow to play for limited time, after which you must put in a quarter to continue playing, because the price of the PS4 is too cheap. Any Sony didn't say you have unlimited operation time on the PS4.

Of course, you'll reply...I don't know the BOM of the PS4...etc.

Well, guess what? You don't know the cost structure for MS and publishers...have you consider the ratio of multiplayer games vs single player games? Just that point should let you know why the publishers are okay with this model.
 
I don't understand some people logic.

Going by your logic, when you "buy" a PS4, you're only allow to play for limited time, after which you must put in a quarter to continue playing, because the price of the PS4 is too cheap. Any Sony didn't say you have unlimited operation time on the PS4.

Of course, you'll reply...I don't know the BOM of the PS4...etc.

Well, guess what? You don't know the cost structure for MS and publishers...have you consider the ratio of multiplayer games vs single player games? Just that point should let you know why the publishers are okay with this model.

Logic?
 
Going back through some of the interviews Major Nelson confirms that your not fully sharing 10 games, not a direct quote but says "it not like your buying one copy for all 10 members", its at the ~4:00 mark. Still going through the rest of the interview though....

Yeah it's not, I presumed all 10 people can't play the game at the same time. That wouldn't be game sharing, that would be game cloning. I figure if you share the game to someone else then they can play it and you can't. Just like it would be if you shared a game disc with someone.



I'm a bit surprised by your response. Did you even care to read my entire point about why I left PC gaming? There's nothing silly about not liking the experience gaming on the PC offers.

That was my point, if you haven't pc gamed since the ps1 days then you don't know what pc gaming is like. It's the same as console really, my pc sits in a closet next to the tv just like my consoles used to. I plug an hdmi cable from it to the tv just like the consoles do. I play from the couch with a controller just like with the consoles. There's isn't any difference anymore, aside from games looking better, games running at higher frame rates and resolution, games being cheaper, pc turning on faster (2 seconds to come out from sleep mode), far more games, far more exclusives, and doing all the extra things pc's can do. Heck it takes longer for my tv to lock onto the hdmi signal than it does for the pc to come out of sleep mode. And with Steam's big picture mode I get a great 10 foot experience as well. It's not 1995 anymore. Man it's like people who still think American cars are unreliable because of that 1981 Buick Skylark they used to own. Things have moved on. Why do you think for some people buying yet another games only playing console is a tough sell?


Nah, no need for her to leave MS bandwagon yet:

Entertainment stuff is intact as of yet.

Entertainment was a major part of it as was the family plan. Now that they changed the game plan on her she doesn't trust them enough to follow through with their other promises. She's not your typical console buyer. stuff like cost doesn't concern her as long as it does what she wants and what was promised. Spending $500 on it was no big deal to her, she spends more on shoes and purses anyways. But changing the game plan was a big deal to her, so she cancelled her pre-order. Now it doesn't matter much what Microsoft says because she won't trust them until they show it in action.
 
The only reason Microsoft changed there mind was not because of a vocal minority but because they must of got feedback from there retail partners and they werent liking what they were hearing.
Exactly. Microsoft have had their fair share of unpopular products, from DOS 4.x through Windows ME, 98SE, Vista, MSN Music Store, to PlaysForSure. They are well used to the vocal minority complaining about their stuff. To so publicly change track on this, it wasn't a mere minority being vocal, Microsoft had something more tangible that caused them to stop and question their direction. Perhaps it was early pre-order numbers, perhaps it was feedback from retailers, perhaps it was simply Microsoft's own execs taking away huge negativity from E3.

The vocal minority didn't make this happen. Multi-billion dollar companies don't change critical product features based on a few internet loud mouths.
 
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Eh, one too many drinks (for me), last night. :)

Anyway, I was trying to say. Why can't we accept what MS said about sharing without adding the twist about demo mode or limited time, when they haven't say such a thing.

Sure there are things that aren't clear in their statements such how does it work when you a pool of purchased games. For an example, people a, b and c are family/friend. However is it possible that c, d and e are in another set of family/friend? Basically allowing one individual to be in more than one family/friend sharing group. I suspect you can only belong to one group at a time, to make the rules simpler to implement.
 
Anyway, I was trying to say. Why can't we accept what MS said about sharing without adding the twist about demo mode or limited time, when they haven't say such a thing.
The question arises over the economic impact of giving a full game to nine people for free, which is exactly the problem with piracy and second-hand sales that this DRM was supposed to be addressing. I'm not saying I believe in the rumours or not - only explaining why some people are questioning what MS said about sharing because it doesn't add up to 100%.
 
The question arises over the economic impact of giving a full game to nine people for free, which is exactly the problem with piracy and second-hand sales that this DRM was supposed to be addressing. I'm not saying I believe in the rumours or not - only explaining why some people are questioning what MS said about sharing because it doesn't add up to 100%.

I can only speculate like you .
Maybe Microsoft said hay developers publishers we are going to bring DRM in to help protect everyone's bottom line .
Under this DRM all games will be treated as a digital copy .
Which means no more second hand market where you don't get a cut of the selling on fee .no more piracy worries .under this digital future we can set up our own rental service and reap the returns from that as well as second hand game sales

In return for us doing this we want a digital game sharing policy to help us sell this new future to customers who will obviously have fears .look at what you gain developers just leave sharing as it is ,as it helps to build a games following and hopefully sales in the long run.

There's only one problem with my theory Microsoft come across as the good guys and as no one is perfect the truth probably lies somewhere in between corporate greed and customer welfare .:rolleyes:
 
It costs nothing to preorder right? And you can cancel well before it ships?
Nothing. When I initially placed my order for a PlayStation 4 and five games, my order totalled £1,085.88 but no deposit was required. Of course this was based on placeholder prices, which was £599.99 for the PS4 and £89.99 for each game. The console price now shows the RRP of £349.00 and the games now have placeholder prices of £54.99 each. I've removed one game from the pre-order, because I'm less fussed about Assassin's Creed. I've decided to buy that digitally, mostly to test the new system. If it goes horribly wrong I'll still have Watchdogs, Knack, Killzone and Battlefield. Infamous Second Son is still in the pre-order but that's now not out til Q1 2014 :cry:

The thing about Amazon though, although I placed a pre-order within days of pre-orders going live, I don't know if I'll actually get a console at launch, e.g. was I too slow?
 
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Nothing. When I placed my order for a PlayStation 4 and five games, my order totally £1,085.88 but no deposit was required. Of course this was based on placeholder prices, which was £599.99 for the PS4 and £89.99 for the games. The console price now shows the RRP of £349.00 and the games now placeholder prices of £54.99. I've removed one game from the pre-order, because I'm less fussed about Assassin's Creed, I've decided to buy that digitally, mostly to test the new system. If it goes horribly wrong I'll still have Watchdogs, Knack, Killzone and Battlefield. Infamous Second Son is still in the pre-order but that's now not out til Q1 2014 :cry:

The thing about Amazon though, although I placed a pre-order within days of pre-orders going live, I don't know if I'll actually get a console at launch, e.g. was I too slow?

if you got a "launch day edition" you should.

that's in usa, no idea on others.
 
if you got a "launch day edition" you should.

that's in usa, no idea on others.

I've read of about launch day editions for the Xbox One but not PS4. I'm not sure what a launch day edition PS4 would be, but I know the Xbox One has an achievement :smile: My friend and I were both torn, so like last current gen she went for Xbox and I went for PlayStation. She excitedly told me her pre-order had changed to a launch day edition but I don't know who she pre-ordered with.

I'm not hugely concerned, Amazon traditionally get good stocks of launch items and I doubt there were many impulse buyers for either console at the Amazon placeholder prices. They also enabled pre-orders rather stealthily. I'd signed up for an email notification when both One and PS4 were avaialble for pre-order and got neither. I only heard about it on the IGN UK podcast :rolleyes:

Amazon were probably only intending to send pre-order email notifications when prices were less terrifying ;)
 
The thing about Amazon though, although I placed a pre-order within days of pre-orders going live, I don't know if I'll actually get a console at launch, e.g. was I too slow?
A leak shows a retail memo saying preorders are wide open for PS4 - Sony are expecting to provide ample supply. I think the chances of anyone preordering a PS4 a good month before release not getting it at launch are slim (assuming preorders don't explode!).
 
I can only speculate like you .
Maybe Microsoft said hay developers publishers we are going to bring DRM in to help protect everyone's bottom line .
Under this DRM all games will be treated as a digital copy .
Which means no more second hand market where you don't get a cut of the selling on fee .no more piracy worries .under this digital future we can set up our own rental service and reap the returns from that as well as second hand game sales

In return for us doing this we want a digital game sharing policy to help us sell this new future to customers who will obviously have fears .look at what you gain developers just leave sharing as it is ,as it helps to build a games following and hopefully sales in the long run.

There's only one problem with my theory Microsoft come across as the good guys and as no one is perfect the truth probably lies somewhere in between corporate greed and customer welfare .:rolleyes:

I heartily agree with the bolded sentiment. Neither MS nor Sony is the good guys or the bad guys. The trade-off you posit could be exactly what MS pitched to publishers. Now the question could be then what do publishers really want ? Do they REALLY want all discs to go away ? Do the REALLY want to get rid of the used game market AT THIS TIME ? I suggest that we could at things a little more broadly and take into account where publishers having control of physical discs means they have more control in general. Publishers are in competition with other publishers in the retail disc space as well as publishers AND developers in the DD space. Right now the status quo may favor the majority of publishers and making changes now might cut into their plans.

I mean we are all just staring at these black boxes known as corporations and trying to figure out what is going on inside. Such is the stuff of hubris ! The ONLY thing I KNOW is it's about money and that makes one part of the equation very easy to solve.
 
I've read of about launch day editions for the Xbox One but not PS4. I'm not sure what a launch day edition PS4 would be, but I know the Xbox One has an achievement :smile: My friend and I were both torn, so like last current gen she went for Xbox and I went for PlayStation. She excitedly told me her pre-order had changed to a launch day edition but I don't know who she pre-ordered with.

I'm not hugely concerned, Amazon traditionally get good stocks of launch items and I doubt there were many impulse buyers for either console at the Amazon placeholder prices. They also enabled pre-orders rather stealthily. I'd signed up for an email notification when both One and PS4 were avaialble for pre-order and got neither. I only heard about it on the IGN UK podcast :rolleyes:

Amazon were probably only intending to send pre-order email notifications when prices were less terrifying ;)

Launch editions are consoles that are guaranteed to be on your door step on launch day. Standard editions may arrive later. It's also possible for a standard edition to be bumped up to a launch edition, but it really depends on how many units are made.

With the Xbox, there are "Day One" editions which come with special fluff that is physically a separate SKU. I'd assume that Microsoft only has a rough idea how many of those consoles will be made and as such is capping pre-orders.
 
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