Prediction: The road to victory is Europe.

[blakjedi]

In thinking about where the console manufacturers should place there efforts in this generation I have come to the realization that:

1: NA is the biggest and MS' strongest market... it has a high chance of winning here.
2. Europe being the second largest videogame market and Sony country means that its pretty safe for Sony there.
3. Price. Availabilty. Wii. Japan

As an Xbox fan... I dont mind MS doing what it can to garner the hearts and minds of Japanese gamers... but I think that the real battle for them is Europe. If the 360 can keep the lead in NA and wrest Europe away from Sony they will have a winner on thier hands... culturally, financially, and market wise I think of Europe being WAAAY more important and feasible for MS to access than Japan... and well worth the money spent there. Sony had to split its loyalties betwen home (J) and market acceptance (US) and in the end Europe got screwed...

I think the message can be sent to the Japanese marketplace and developers that on the world stage it is possible to make great games and have a successful console without their help or support.... a major win in non-Japanese territories for xbox can solidify its user and developer base. What do y'all think about this?

 

[Gholbine]

I'm fairly certain Sony will go unchallenged in most territories, with perhaps the exception of Japan, where the Wii should give them a run for their money.

 

[Inane_Dork]

MS has a chance at taking North America.
N has a chance at taking Japan.
But Sony is still the favorite for all three territories, IMO.

It would be interesting to see a console come out of Europe, though. It's a large, growing market with a growing developer base as well. Too, it would be fun to have one console come from each region, just to see the dynamics of it all.

 

[Tap In]

I'm fairly certain Sony will go unchallenged in most territories, with perhaps the exception of Japan, where the Wii should give them a run for their money.

well then watch how close NA is this gen

I'm calling it now... too close to call.

 

[PiNkY]

Adoption rates in Europe have traditionally been much more price dependent than in the US (obviously related to the much higher prices for these things, especially when it comes to games) . Things will start to get interesting once one or both consoles hit something like 150€.

 

[London Geezer]

well then watch how close NA is this gen

I'm calling it now... too close to call.

Close? Close to what? Which generation?

 

[Arwin]

Adoption rates in Europe have traditionally been much more price dependent than in the US (obviously related to the much higher prices for these things, especially when it comes to games) . Things will start to get interesting once one or both consoles hit something like 150€.

This is not entirely true, but partly a misconception based on that when the PS2 was launched, there were a whole bunch of factors contributing to the PS2 being very cheap in the U.S., and very expensive in the EU. This has little to do with price-dependency when comparing one region against the other.

This time, the pricing in the respective territories is much more equal, and for the U.S. it will feel expensive, while for the EU it will feel, well, normal. So then we will get the regular price developments as the cost of the consoles go down, and we'll have to see how that pans out in the respective regions. But it has nothing to do with the EU being supposedly more price-sensitive, imho.

 

[Phil]

I might also want to add that Europe is also the one region that causes the most headache, since Europe has multiple countries, each with their own language from German to English, Italian, French, Spanish etc... Localisation I would think, drives up the cost quite a bit - and certainly causes quite a bit of headache and time.

If it's the road to victory though? I'm not that sure. Japan is a very important region, not because it's a large market on its own, but also because a lot of quality software comes from there. I wouldn't be the PlayStation supporter I am today if it weren't for the likes of Konami, Capcom, SquareSoft, Namco etc. It's hard to quantify how many think alike, but I'm sure that's a factor as well if you look at the list of best-selling games across Europe.

 

[London Geezer]

Europe has ALWAYS been a liability. Different TV system (in the PAL/NTSC days, which is still valid today!), different electrical voltage or whatever it is, loads of different languages, loads of different laws and tax systems (VERY important!!), distribution issues due to there being so many different countries involved...
It's always been a mess.

That's why Europe has always come last in everything manufactured outside Europe. For Americans and especially Japanese manufacturers, it's a pain to convert, sell and distribute stuff here.

That's the real reason.

No one hates European. As much as i love to nag and whinge about always getting the short end of the stick here, it's really nothing personal, and no one should take this personal.

Do people actually think that Sony (or MS or anyoen else) don't like/want to sell in Europe??
That's a silly statement, especially seen how Europe is a huge market (bigger than Japan, as we've seen) and on top of that, they usually charge more! So revenue is higher because it's a huge market, and profits also go up because of the overcharging we usually get. Heck, we've been subsidizing other territories' low prices for decades! Manufacturers love selling in Europe. It's just difficult for the reasons i gave above.

 

[liolio]

blakjedi, Ithink your right.
MS will be obliterated in JApan, they don't stand a chance...
They have cut price, but they won't sell console, so it won't cost them a lot (at all lol).
But Europe is really the place MS should put is efforts.
I'm still waiting Ms to do a smart move here this chrismass, they're alone on the hight end market.
it's theirs better chance, they have great games for chrismmass and others great games for fall winter early spring (when ps3 launch here).
They do have to take a risk (financial one), price cut? I don't think so. but more offensive bundle with some free month free live, if they miss this opportunity they will get what they deserve here, Europe is mostly a ps3 fanland.

 

[Sethamin]

Europe has ALWAYS been a liability. Different TV system (in the PAL/NTSC days, which is still valid today!), different electrical voltage or whatever it is, loads of different languages, loads of different laws and tax systems (VERY important!!), distribution issues due to there being so many different countries involved...
It's always been a mess.

Amen. Although Europe is the 2nd largest gaming market, it's fragmented and no single country there really matches up against the US or Japan. To ship to all of it, the localization alone is a nightmare, in addition to all the other things you've mentioned. Then there's the ridiculous cryptography import and export laws (I'm looking at you France), the "video game" versus "computer" duties (remember the PS2?), archaic forms of broadband (France again), laws on electromagnetic noise, and even the occasional strange IP discrepancy (what? no "private performances" in Spain? what the hell?). It's enough to drive a company shipping any sort of complex, multi-function device insane. The European Common Market was a nice step in the right direction, but there's a long way to go before it's as easy to ship there as it is in NA and Japan.

 

[blakjedi]

I think if MS cracks the European "nut" (so to speak) they can "win" without Japan... Japan is an absolute loss without winning the rest of the territories. The only way to get the respect of the major Japanes developers is to outsell their "home" platforms throughout the rest of the world and have such significant marketshare that they are forced to develop or become niche... If gaming tastes start accelerating away from Japanese styled titles (the trend has already begun) that will bring realism back to market. Japanese console makers probably shouldn't dominate the global console martket anymore...

 

[zifnab]

I think Europe will be the most important market in the forseeable future. The EU population will hit approx 500 million with the expansion at the end of the year - compare that with the U.S. population of about 300 million and the 125 million (and falling) in Japan. Newer EU markets of course need to grow more and Japan will remain important because of its strong and distinguished software support. But given that most newer EU member economies are growing quite swiftly and there seem to be more and more prominent European software developers, Europe will imo become the most important region in the near future.

 

[Phil]

Excuse my ignorance, but why is it so important who "wins" on a global scale? Even if Microsoft does end up with more sold units with Europe and US compared to Sony in all 3 territories - I don't think that would change my support for the PlayStation brand, given my favorite developers still support my console of choice.

For an example; It's a bit like comparing DS to the PSP. The DS dwarfs the PSP in sales, yet as a PSP supporter (well, actually, I don't have one ), I still wouldn't buy a DS simply because the software doesn't interest me. I guess one could say they are two different markets. If I get a DS, it won't be at the expence of a PSP and solely for the software that makes DS special and a unique purchase.

The same would hold true for the Xbox360. Microsoft can sell their console to the majority of the industry, yet that still wouldn't make me have any more interest in their software lineup that I do now. If I do end up getting an Xbox360, it will be solely to enjoy the games that make that console unique; IMO, that would be western orientated RPGs and first-person-shooters like Halo and Gears of War. The PlayStation format will continue to be my primary console of choice though, solely for the software that I think make that format unique; And that's primarely Japanese flavoured games and the exclusives here and there that round up things.

*Note; when I talk about software that makes the console unique, I'm specifically talking about exclusives and not multi-platfrom supported titles.

 

[Sethamin]

Excuse my ignorance, but why is it so important who "wins" on a global scale?

The same reason people like to speculate on Microsoft's branding, or Google's products, or Apple's new iPod, or anything else of the like. As interested observers, it's a fun exercise and it's a free forum to express opinions about their business strategy. Otherwise, you might as well never say anything unless it's on a product you directly use.

That being said, I do prefer the technical discussions to these.

 

[Tap In]

Close? Close to what? Which generation?

sorry, I meant watch this (next gen) race in NA be incredibly close between Sony/MS in contrast to the comment which I quoted stating Sony would be "going unchallenged". :smile:

Europe? I have no idea other than you guys despise yanks.

 

[22psi]

MS has a chance at taking North America.
N has a chance at taking Japan.
But Sony is still the favorite for all three territories, IMO.

It would be interesting to see a console come out of Europe, though. It's a large, growing market with a growing developer base as well. Too, it would be fun to have one console come from each region, just to see the dynamics of it all.

I agree with this post. I think Sony will still take #1 overall by beginning of 2009.

 

[blakjedi]

Excuse my ignorance, but why is it so important who "wins" on a global scale? Even if Microsoft does end up with more sold units with Europe and US compared to Sony in all 3 territories - I don't think that would change my support for the PlayStation brand, given my favorite developers still support my console of choice.

That is the key to the thread. Its not really a brand support thing (although I openly admit my preference). Its more that I find two things disappointing about the console "race":

1) Japanese developer support of "western" consoles is mediocre.. with the exception of capcom (sega being only shell of what they once were) Japanese developers with major franchises tend to stay on the japanese consoles. At the very least make your best franchises multiplatform and place your niche franchises where you think they'd sell best... I hat ethe idea of buying a PS3 just to play MGS when it could be on more consoles ala Splinter Cell.... I understand however why Ninja Theory specifically choose a single console to focus on for their product.

2) If your favorite developers have incentive to bring their wares to other consoles with equal or better results that may change your "choice" of console. I went from Genesis, to playstation 1 to Dreamcast to Xbox and then X360 as my primary platforms for gaming... even though I also bought other consoles to support their niche products...

I'm not necessarily a brand supporter but I do enjoy great games... what reason other than mythical loyalty do devs have for supporting one console over another is real question... to me it boils down to sales and if Xbox has enough sales throughout the world they wont have to depend make it or break it IPs like we see happening now.

 

[Shifty Geezer]

1) Japanese developer support of "western" consoles is mediocre.. with the exception of capcom (sega being only shell of what they once were) Japanese developers with major franchises tend to stay on the japanese consoles. At the very least make your best franchises multiplatform and place your niche franchises where you think they'd sell best... I hat ethe idea of buying a PS3 just to play MGS when it could be on more consoles ala Splinter Cell....

This is a downside to competition. If all consoles had all games, there'd be no point to multiple consoles. The games wouldn't tap the full potential of the machines. Different competing consoles means different libraries for each, which means if you want all the libraries available to you, you have to have al the consoles. If there were only one console, we'd have every game available, but probably at higher prices etc. You can't win them all.

I understand however why Ninja Theory specifically choose a single console to focus on for their product.

Yeah - One of those console companies paid them to!

 

[standing ovation]

Let's see. If I was Steve Ballmer, head honcho at Microsoft, I'd probably wish I were Steve Jobs!

Seriously, I would target the world's largest economies (US and EU) first, followed by the world's most populous countries (China and India). I wouldn't waste time and energy wooing Japan.

Notwithstanding, my first priority would be to overhaul Xbox Support. What's selling the product isn't merit, but its quality of service.



[size=-2]P.S. The road to victory isn't Europe -- it is aggregate sales.[/size]