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SideShowMel0329 (51.68)

Thoughts on the brewing next-gen console war?

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June 13, 2013 – Comments (3) | RELATED TICKERS: SNE , MSFT , NTDOY

I wanted to spur some discussion about the brewing next-gen console war, and how Sony is winning right now (but probably not for the long run) because Nintendo and Microsoft have sunk themselves in the public eye. Consumers in this country subscribe to a groupthink. They back whatever their peers and advice columnists approve of and rebel against what others disapprove of. Both Nintendo and Microsoft have suffered huge PR defeats with the Wii U and Xbox One, respectively. I'm not well versed on the gaming industry anymore but for Nintendo, there are claims they're not keeping up with current trends and lacking third party developer support, and with Microsoft, their DRM, "always online", and used game policies are causing a lot of distress.

 

It's pretty obvious to me what Microsoft's plan here is. They want to make money off of the console industry. They put policies in place to help themselves and their developers make more profit and stop leaking profit. It was a business decision that backfired with consumers, but it looks like they're holding firm with most of their choices. Sony is a money leaking corporation (Nintendo is becoming one too). They make great industry decisions, but their business feasibility is poor. I think Microsoft has essentially stopped pursuing the typical "gamer", they're trying to attract the business of the average person, someone who isn't looking for games alone on their devices. I think it's a great business decision, whereas Sony, who's share price is only a third of what it was in 2007, will continue to suffer if they don't adapt to the harsh reality of doing business in the gaming world. That is, the growing competition from mobile phones, active used game consumption/game sharing, and increasingly expensive development and production costs that are demanded to create leading edge, top-of-the-line video games.

 

Long story short: For next-gen consoles, Sony is making consumer friendly decisions, Microsoft is making business decisions. Who will win out?

3 Comments – Post Your Own

#1) On June 14, 2013 at 1:00 PM, chk999 (99.97) wrote:

I think MSFT will win this. The hardcore gamer market isn't that big compared to the general populace and MSFT is going after the bigger market. Sony loses money and will go out of business if they keep this up. MSFT has also decided to keep some of the money that Gamestop makes. My guess is that the hardcore gamer crowd will grumble, but will end up buying the xBox One after Sony melts down. Sony's net tangible assets keeps dropping so the money loss is a real one, not just accounting.

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#2) On June 15, 2013 at 9:41 AM, madav1138 (< 20) wrote:

You are both wrong.  MSFT windows 8 has not been well received and now they flub the Xbox One by restricting people's ability to play games, and they are attempting to double dip on the license you purchased when you buy a game.  The intellectual property contained in that game now belongs to you do what you want with it, they want to then scoop up a double profit if you resell it or trade it.  This is an outrage. 

 If you buy an original piece of art, and you then sell it at auction does the artist show up and demand 10% sales fee? 

If you resell and old magazine on ebay, does the publisher swoop in and take away your profit for that old magazine or comic book?

 This is what MSFT intention is.  Its unfair, its unfriendly and out of touch.  Once people who have not kept up with the news, and buy one of these realizes when you click share game and you can't it will be a riot.

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#3) On June 19, 2013 at 10:06 PM, APJ4RealHoldings (33.63) wrote:

Mobile gaming will accelerate its grab of gaming time with people. Less hours will be spent on traditional consoles & PCs and more hours spent on gaming with mobile devices.

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