Business Approach Comparison Sony PS4 and Microsoft Xbox
- Thread starter BRiT
- Start date
COPS N RAPPERS
Regular
Interesting, because If it lands anywhere in December with an expected low shipment number then they have actually more time on their hands than we all expected. everyone's speculation should actually revolve around an accurate time frame.
if the target is 500,000 units to be shipped then they need at least a couple months for mass production and testing.
Bagel seed
Veteran
500k for worldwide launch by end of Nov would be a pitiful amount and much lower than current gen, which was already very limited. They need at least 3 months to get going.
D
Deleted member 11852
Guest
These are unknowable questions. It depends on who Microsoft have contracted building their console (chances are, Hon Hai Precision Industry Co., Ltd) and their capacity, the individual component availability, the ability to get component sub-assemblies (like APU and RAM fixed to boards) and a number of other issues. There are a ton of unknowable logistics issues like output from IC fabricators (TMSC, GF etc) feeding into, over-supplying, undersupplying board population to main assemblers.
Most of all, it depends what their inventory target is for launch. 500k. 1m, 2m, 5m. Both Microsoft and Sony are not fighting merely demand, they are also fighting the other guys's ability to supply. I.e, if somebody can't get a PS4 in the first week, will they buy an available Xbox One - or visa-versa.
COPS N RAPPERS
Regular
well, it's about matching up to the demand since were still in the stage of feedback by developer and gamers. PreOrders and reception gives them time to adjust on expected units since they haven't hit mass production yet.
Around that time or sooner, it depends on the number of testers and the testing time involved. Testers can put a console through all of it's paces in a fairly short time.
D
Deleted member 11852
Guest
It's not a stupid question, just a very difficult to answer question for anybody not really close to Xbox One's production schedule to answer :smile2: The real answer will depend on the production of ICs, boards, cases PSUs, cooling solutions and these components assembly which will dictate the finite maximum number of units that can be produced each month and which will result in the maximum number of consoles that can be made available for launch.
A fear for both Microsoft and Sony is if a potential customer is unable to buy their console, they may buy the other company's console instead and invest in that platform and its games for the next 5-7 years.
COPS N RAPPERS
Regular
In either one's defense they could be caring about the customer's decisions on jumping ships because of not enough to go around. on other hand fixed numbers could be shipped to create the illusion of Hype over supply and demand. (I think that tactic was used for the original Apple Iphone, not sure.) it could go either way for the two.
-----------------------------------------
Edit - Trying really hard not to enter into the business discussion thread, so i will say that the target number of units shipped and the schedule involved could be the reason why we're heard DF's Esram tweaks and near final silicon information weeks ago.
Last edited by a moderator:
D
Deleted member 11852
Guest
I think there are a number of folks who will buy a PlayStation 4 and a number of folks who will buy a Xbox One, and nothing announced for now on will change that. Everybody in-between is still in the fight for both Microsoft and Sony.
Sorry, I didn't follow this. You could argue that any product that is selling out and is in demand is good but the difference, for example between the Wii and PlayStation 3, is that Nintendo had no production issues and still couldn't make enough consoles to satisfy world demand for over 12 months and Sony, couldn't make enough consoles, due to blue die laser production issues, despite lacklustre demand. Big difference.
The number of customers who say, "Sod it," and buy the rival has got to be irrelevantly small. Few early adopter go out looking for a new console and just pick up whatever's in the shop. The consoles represent a significant investment for those who'll be playing them exclusively for next 5+ years, and most are already fans of a platform and it's games, or are 'well read' from gaming website, or have been talking with 'friends who know'.
It'd be like someone walking into a shop to buy an iPad, having none available, and buying a Google Nexus instead. It's just not gonna happen.
deathindustrial
Regular
Hopefully this is the correct thread for this . . .
http://www.joystiq.com/2013/07/09/gamestop-halts-ps4-pre-orders/
Not sure if we can infer anything from that (popularity? yield issues? politics?)
Cheers
http://www.joystiq.com/2013/07/09/gamestop-halts-ps4-pre-orders/
Not sure if we can infer anything from that (popularity? yield issues? politics?)
Cheers
Unless we have actual numbers for the preorders, I would guess there's no way to know if it's either a supply or a demand issue, or just a well known marketing trick.
Futurama joked about this concept better than I could.
http://www.youtube.com/watch?v=a0CO5JgE_hQ
D
Deleted member 11852
Guest
What is that based on?
Except for mums and dads who earn the $$$ to pay for these things so close to Christmas.
Based on observation of consumers. It's not like consoles are as interchangeable as other CE devices like TVs. You'll get a few early adopters who are just on the lookout for a new toy, but that's not the mainstay of the consumer buyers IMO.
Again, I doubt they'll buy an XBox when they kid is asking for a PlayStation, or vice versa, and I also doubt the kids will be asking for 'a new games console; I don't care which'. I've never observed or heard of anyone doing that. I've heard of confused grannies picking up the wrong box 9which gets replaced with the desired one, of course), but never a disinterest in the brand of games console because it has a significant impact on the experience. Like iPhone versus Galaxy S4, or PC versus Mac, or Liverpool shirt versus Man U.
What is your reasoning to think early adopters go into a store looking for a particular console but will happily buy the other one?
D
Deleted member 11852
Guest
I think consoles are perceptually interchangeable CE devices come generational leaps, particularly when launched so soon within a given holiday window. My mum, bless her, still refers to all games consoles as PlayStations and I've been in GAME (a UK store) stuck behind a mom who thinks everything is an Xbox. Parents don't know or care about the differences, they do their best to get their kids what they want in a world of mortgage payments. More so when PS4 is $100 less than Xbox One.
Initially I was bought 48k ZX Spectrum instead of a Commodore 64.
I still have flash backs.
Last edited by a moderator:
There are some clueless parents, but I doubt they represent the majority. They'll be a fraction of the total number of parents, who are a fraction of the total number of launch-period buyers. And how many of those wrong gifts are kept instead of replaced with the desired product (either in store or sold and the replacement bought)?
The number of customers who say, "Sod it," and buy the rival has got to be irrelevantly small. Few early adopter go out looking for a new console and just pick up whatever's in the shop. The consoles represent a significant investment for those who'll be playing them exclusively for next 5+ years, and most are already fans of a platform and it's games, or are 'well read' from gaming website, or have been talking with 'friends who know'.
It'd be like someone walking into a shop to buy an iPad, having none available, and buying a Google Nexus instead. It's just not gonna happen.
First, its Christmas where being labeled early adopter can be a result of happen stance versus intention. Most shoppers aren't shopping for themselves and don't tend to be as adamant as someone buying for themselves when buying brands. The second best choice will be readily purchased in cases where the first choice is not an option. Its how I got a Genesis instead of a SNES and I'm sure a number of kids will open a gift box and get a console that is not the one specified on their Christmas list.
Second, every technophile is not a brand loyalist. And in the cases where product of choice is limited by no availability, the notion of acquiring a new toy can readily trump brand preference.
If the XB1 and PS4 come in limited quantities, I won't be surprised if the WiiU ends of being the best selling next gen console over the holidays.
Last edited by a moderator:
D
Deleted member 11852
Guest
Pretty much unanswerable. Obviously replacing an unwanted Xbox One purchase with a PlayStation 4 is one of preference and availability, the reverse isn't true because of the cost difference. How many kids, who have an Xbox 360, will end up with a PlayStation 4 because it's a hundred bucks cheaper? Or because the parents read about this camera that's always on and they don't like the sound of it?
Not sure we'll ever know those numbers, but there's this global recession thing that's still going on and that'll influence a number of folks.
Last edited by a moderator:
