This is just a question, not a war, just a simply question I would like to ask out loud. Is the war over, how do you see the consoles future playing out. Have we the consumer already decided that PS4 is the winner?
And If so, then I’m writing this to ask you what do you think needs to be done, what does Xbox do now?
This is really interesting, it’s a clear battle of sales right now, and it’s starting to affect everything going forward. For example if you look at just what’s happening with games you can start to see PlayStation is starting to get promotional rights. You see it in some of the biggest games to date like Call of Duty -Black Ops 3, and Star Wars Battlefront.
Why is that even important, well it shows a big shift in power, and when a company that has all the money in the world, stops throwing money at something, it might be time to start looking at the writing on the wall.
I mean this never happens, Microsoft is always the lead and always the system being promoted in the commercials. Well not this time around. Sony is back on top of gaming in a major way with the PS4. It’s selling like hot cakes, and the momentum is only gaining traction. You might have thought that will Xbox One doing it’s slight price cut and added bundles it would slow down the freight train of PS4’s momentum. But this has not happened.So even if Xbox One takes the lead for one month PS4 sales are still strong.
And realistically you can’t win a race by taking the lead once or twice here and there, it’s about being in the lead near the end of the race. And were not at the end of the race by any means, but at this point the PS4 is so far ahead it’s going to be really hard to catch up.
So what does that mean for Xbox One. Has Microsoft already accepted defeat. I think so, I think they are already working on Xbox2 or the next system, that will follow Xboxone, whatever that will be called.. Why? Well I say that because I understand business and I understand that at this point they are facing a very uphill battle. And in business the best path to success is the path with less resistance. You don’t want to work harder, you want to work smarter.
(Again I am not saying they should discontinue anything as suggested in the comments, I am saying they are most likely looking at what went wrong this time around, they will of course continue supporting and selling Xbox One)
And in any real turnaround starts with reflection of what really went wrong.
Let’s face it, the press conference for the release of Xbox One was a disaster. They seem to be talking about doing all the things consumers didn’t want to happen to gaming. Hardcore gamers really didn’t seem to be a fan of kinect, and they really hated that it was a forced on option, which also made the system $499 instead of $399.
The end of used games, the forced add-on feature of must be connected online all the time / no offline mode, which was really just another way of trying to do DRM - Digital Rights Management. Otherwise known as checking on you, to see if your playing legal copies of games, and stop the system from playing a game, if you are not playing a legal copy. All of these things, backfired big time, as the backlash turned from just consumers upset to consumers against the product to finally consumers not buying the system.
But all of these policies were in the end cancelled and changed from, can't be made without kinect to now it can. I think Microsoft does need to get to an early start on the next Xbox system because this one is starting to really get away from them. In terms of sales.
So what now, well I'm glad you asked. I think they need to cut the price… it needs to come down to $249. Why, because at this point it’s the only way to get the numbers back up to PS4 and not lose your fan base, which is happening as the gap gets bigger and bigger.
Keep in mind the way they recoup money on the system is from games, both Microsoft and Sony make $20 dollars per game. So for the system to do well you need to sell a lot of units, so you can sell a lot of games. If a lot of people don’t have the system then there's a zero chance you sell them any games. And games is where the system makes it’s real money long term. (In the end they need a lot more gamers to own an Xbox One if they plan on staying competitive with PS4 and still relevant in the gaming space. And to be able to make the kind of money it needs to make to be near or at the top of the gaming space.
At this point they will be lucky if Nintendo doesn't pass them.
But what do you think they need to do? What would you do if you were in Microsoft's shoes right now? What do you think is holding back Xbox One from selling like PS4?