260°

PS4 VS Xbox One Shows Microsoft Corporation (MSFT) Solace in Failure

Rumors emerged on Friday that Microsoft was planning a slew of big hardware releases in October. The news, which likely doesn’t sit well with the firm’s investors, is worth looking at in contrast to the PS4 VS Xbox One battle.

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SaveFerris3169d ago

Sigh. Yet another Xbox One is failing article because it hasn't sold as much as the PS4.

Strikepackage Bravo3169d ago

Well, this is more of an investment type look at the entire company. For every negative one of these you could do for Microsoft, you could do ten for Sony who is barely solvemt. But yeah your are right, this is just one more negative article to pile on with, and in this case it would make far more sense to be worried about the future of Playstation given its parent companies financial state.

Spotie3169d ago

It's not for Microsoft, but Xbox. Due to the differences in importance that the two gaming divisions have, you actually can't have ten PS articles for every Xbox article. Microsoft is more likely to cut Xbox than Sony is likely to let anything happen to PlayStation.

joeorc3168d ago

@Strikepackage Bravo

"it would make far more sense to be worried about the future of Playstation given its parent companies financial state."

Umm, no its not anywhere near the same , as spotie pointed out bluntly. Microsoft would be more willing to dissolve the Xbox platform than Sony ever getting rid of a wholly owned subsidiary!

You do know, that PlayStation is its own company already, you cannot buy stock into it because even if you purchased Sony Stock the parent holding company.

Playstation as a part of Sony is an Asset, that is "Held" Sony's just the Holding company for PlayStation because Playstation and parts of it are example's a LLC. Limited Partnership's.

Unlike playstation, Microsoft has Xbox as a "division" of Microsoft.

That's why you cannot compare how both companies have set up their game divisions.

With Microsoft when you buy stock you get access to xbox . if you bought Stock in Sony you do not, get access to PlayStation because PlayStation Stock is not an iPO offered, the only stock holder is a non alive Corpus..the company itself. Yes the asset could be sold but most likely to its self.

It was pretty much spun off when ken sold his last of his ownership shares of playstation back before he left.

That's why what ever happens to Sony itself does not really effect Playstation because PlayStation section of the Company is a "Subsidiary" not a Division!

Strikepackage Bravo3168d ago (Edited 3168d ago )

@joerc
Im not sure if what you say is true, but if it is,that only makes it easier for Sony to sell off Playstation if they ever needed to. It also allows them to hide certain financial transactions between the two entity's. Im guessing Sony set this up back in the PS3 days when Playstation was in a bad way and in danger of being sold off to save the larger company.

But on topic, the reason its a bigger deal with the Playstation is because Sony has already been selling off parts of the company to pay the bills so they have a history of it, also Sony is clearly spending LESS on game development and improvements to the Playstation because of financial constraints. If Microsoft was going all in on indies because they were too broke to finance AAA games it would be the news story of the century, but since its Sony, we all pretend it isnt happening, and that indies are the coolest thing ever now.

Death3168d ago

You can't buy stock in PlayStation? Wow. You mean I can't add it to my Bravia stock or BDPS1500 stock? By your logic Xbox is it's own company too since you can't buy its stock either. I guess we can all sign in relief that Xbox is safe since it doesn't have stock. I've honestly never heard such BS in my life. Let's ignore the fact Xbox makes Microsoft much more money than PlayStation does. If Xbox makes more money for Microsoft which owns them than PlayStation does for Sony, how again is Xbox in more danger?

Why are we even pretending that Microsoft or Sony have any interest in closing down or selling their gaming assets?

DragonKnight3168d ago

"Let's ignore the fact Xbox makes Microsoft much more money than PlayStation does."

Yes, let's do because that's a bold faced lie. The Xbox Division has never made Microsoft money since inception. In fact it's bled money for Microsoft. First the original Xbox cost MS $4 billion in losses by the time they abandoned it for the Xbox 360... which cost MS another $1 billion itself just for RROD alone. We're now into the Xbox One which is not doing as well as the PS4 in either console or software sales and you expect anyone to believe Xbox is making more money for MS than Playstation is making for Sony?

You make blatant MS trolls look bad with your ignorance.

"how again is Xbox in more danger?"

Because articles like these have existed for MS but not for Sony.

http://attackofthefanboy.co...

http://www.gamesindustry.bi...

Now let's assume for the sake of argument that both of those articles are merely conjecture with no basis in reality. The very fact that they are conjecture tells you something anyway.

It isn't your random fanboy saying MS is going to sell Xbox, it's business analysts. These people are paid to look at companies and identify trends and possibilities and the only way they could ever come up with "Microsoft will sell Xbox" is by knowing and seeing that Xbox has NOT been a good division for Microsoft as a whole.

Conversely, Sony has thrown everything into Playstation. Playstation is Sony's most successful asset in terms of actual product, though in Japan they have much more success in the insurance business. In fact if you google "Sony may sell Playstation" you will see many articles saying "Sony focusing on Playstation."

So that's why Xbox is in greater danger than Playstation. Xbox is an afterthought for MS and Playstation is Sony's drive.

Ezz20133168d ago

@DragonKnight

Well said.

donthate3168d ago

This isn't investment. This sounds more like a fanboy article than anything using terms like "investors will look to".

Investors know Xbox division is a cash cow even though it isn't at the top. They also know hardware isn't sold at a loss (in terms of manufacturing cost), but is a result of operational costs specifically in the phone line. Surface line is now profitable!

@dragon:

Despite all those articles, yet we are here and MS still owns Xbox division and is doubling down on gaming like never before. In fact, MS is on track to melding PC and Xbox One into one amazing platform.

Instead how many articles have we seen about Sony's dire financial state which is a fact. Other facts include, Sony doing terrible in practically all other areas including TVs and sold of divisions and buildings.

Those are facts, not even rumors!

I think MS getting these rumors is more of some people's wishful thinking, because they are used to massive profit margins on software. Software is just insanely profitable if you get scale. That is why these companies can pay engineers $100k starting salary without blinking and add tons of benefits.

This is where Sony would struggle, because they need to keep their operational cost low to turn the company around, but that means their output is lower quality compared to the competition.

Also, I think it is important to highlight that Sony lost all the profits they made from PS1 and PS2 on the PS3 whereas MS regained the loss of RROD while on the Xbox 360, but the loss on the original Xbox is still looming. Both PS4 and Xbox One is profitable for both Sony and MS!

If these losses continue then we as console gamers are pretty doomed. It would be a sad day! :(

DragonKnight3168d ago

@donthate: Once again the point is so far over your head it's in orbit. The point isn't that MS hasn't yet sold the Xbox division, it's that business analysts were predicting they were based on the fact that Xbox, as a division, has been a bad division for Microsoft on the whole since it began. The division has bled money from the very start, and the Xbox One's launch was probably the most panned, worst received launch in the history of the industry. THOSE are facts.

Sony selling off other assets unrelated to Playstation is irrelevant. Who the hell cares about a building? Do you mean to tell me that if MS sold a building you'd think you couldn't play Xbox One games any time soon?

See what's happening here is wishful thinking coming from you Xbox fanboys. You're so salty, so afraid of Sony that you'll use anything to undermine them. But guess what's been happening? With all of their "dire financial straits" and each one of you MisterX loving trolls constantly saying "Sony's done", Sony launched a console that's obliterating the "much better off financially" competition. And here's the best part about that. According, once again only to you MisterX loving Xbox fanboys, Sony is doing it on nothing but hype.

You're trying to convince anyone that a company that can outsell their competition globally, and in its own home territory, by a factor of 2:1 in hardware and software based on nothing more than hype is in danger?

What the hell are you smoking?

donthate3168d ago (Edited 3168d ago )

@dragon:

"You're trying to convince anyone that a company that can outsell their competition globally, and in its own home territory, by a factor of 2:1 in hardware and software based on nothing more than hype is in danger?"

Yes, because you have your head so high up in Playstation fanboyism, you don't actually see the dire situation of the rest of Sony corp.

In fact, it is so bad that the Playstation division is what is propping up Sony and diverting their profits to hold onto other divisions. Yup, you read that right, Sony is diverting resources away from the Playstation division to prop up other areas.

Why do the buildings matter?

Because they are assets that were an investment is once sold is now an expense. Why do Sony sell buildings?

Because their finances are cr@p, and they are trying to turn around with little success. So they are unloading everything to hold onto cash to last their turn-around.

Next up is a Gakai write off and soon the TV business to follow. Mobile has already taken a dive. It is all there in Sony's quarterly and annual finances, that they are trying to pretty up every time.

You want to know facts?

* Sony is worth almost half of Netflix in marketcap and less than a tenth of MS

* Sony stock value is near bottom, and is the same as it was in 1995, a fraction of it's high. In fact, if you account for inflation it is close to what Sony was worth back in the late 70s and early 80s.

* In the last 6-months Sony has lost one third of their market cap

* MS spent about one quarter of Sony's total value on buying Nokia alone and a tenth of Sony's value on MineCraft.

* Sony sold a building for $1.1 billion to recapture cash, whereas MS spent over double that to buy MineCraft.

So if MS sells a building, we could care less because MS can afford it. Sony cannot!

Those are facts. Deal with it!!!

"What the hell are you smoking?"

Apparently something you should smoke to get back to reality.

Stop being high on Sony fanboyism!!!

jb2273168d ago

Playstation is Sony's most profitable division, Xbox is MS' loss leader. How is the future of Playstation more worrisome? Hell even if Sony completely dissolved, the PS brand is the market leader that would be snatched up in an instant by anyone interested. MS' shareholders will want to stop putting money towards the Xbox budget if it keeps losing them money while Sony shareholders will want to funnel more funds into PS.

DragonKnight3168d ago

@donthate: "Yes, because you have your head so high up in Playstation fanboyism, you don't actually see the dire situation of the rest of Sony corp."

You have to be injecting yourself with heroine while doing crack after having had your head smashed in with a sledgehammer. That's literally the only way to explain what is probably the dumbest comment ever made on the site, ever.

Reading all of your comment, I'm going to try explaining to you, once again, why you said the dumbest thing ever conceived of on this site.

Sony, a company you say (and btw, you make a lot of claims with no citations) is hanging by a thread and is on the verge of closing up shop altogether, did R&D, and launched, a console with their lack of money that is beating their competition 2:1 in both hardware and software sales across the globe. Even in countries both Sony and MS are competing in, even in the U.S. which is MS' home turf.

Playstation is making Sony money. Insurance is making Sony money.

And then, we look at Microsoft whose Xbox division has never made them a penny. You want to talk about divisions diverting profits, where do you think the $5 billion in losses the Xbox division has made is being covered?

So here we have a company allegedly on the verge of bankruptcy, something you fanboys have been saying literally for years and it hasn't come to pass, diverting all of their efforts into their most successful division, and it's paying off for them.

And a company not on the verge of bankruptcy diverting billions into a division that hasn't once net them a profit.

We have business analysts looking at that fact and coming to the conclusion that no company wants to consistently bleed money on a division that doesn't have any return on that investment. These analysts come to the logical conclusion that MS is likely looking to sell their Xbox division.

We see that NO ONE has said any such thing about Playstation.

And you, in your green-tinted glasses, actually think that Playstation will go under before Xbox does? This despite the fact that MS is continuing to try integrating Xbox into its general PC efforts?

You really take the cake. I've seen some bad Xbox fanboys before, but none of them have ever publicly admitted to trying to convince people that being in the better position competitively still means your brand will die before the competition which is seriously lagging behind. Wow.

Foehammer3168d ago

It's hilarious to see the deceptive comments from ppl that don't even own an X1, lol.

First off we see joeorc suggest that Sony is doing great because the share price has gone from $14 to $30, an old troll trick of leaving out the big picture that Sont shares were over $100 in 1997.

Then DragonKnight goes back to the old days when hater spammed graphs like this:

http://www.neowin.net/news/...

Why haven't we seen this graph lately...

Answer, because it would now show the Xbox division has been making a profit EVERY year since 2008 inclusive, and that hater don't like that.

Other articles suggest that both companies have never made a cent on consoles:

http://learnbonds.com/11754...

Still other say Sony has lost more than MS but DK steers clear of those articles.

The difference of course is that MS can absorb loses in the billions, Sony can not.

We've already seen what happens:

Buildings sold
Divisions sold off
Stores closed
Credit rating reduced to junk status

Yes, when analysts and investors look at the Xbox division they see a bump in the road in the mid 2000's followed by 8 years of profit, and that's what the haters can't stand.

They also see a product that tripled it's install base in it's 2nd year. If you believe the RROD number are built into that then Xbox still doubled it's market share.

And better still, that would mean the the X1 isn't just beating 360 sales but beating then by a landslide. All good news.

The last topic avoided here is the total number of countries they are available in...

one is 42, the other is 124.

If a product ever sells the same in 42 Countries as another product in 124, that's not a tie, it's slaughter and should never happen.

Happy soon to be 15th anniversary of Xbox and ppl predicting it's demise, lol, as much as a joke now as it was 15 years ago.

DragonKnight3168d ago

@Foehammer: LOL! Look at the complete spin you're putting on it. You say "8 years of profit" articles says "MS lost $3 billion over 10 years."

I didn't think it possible, but the fact that you provided the evidence to damn yourself actually makes you worse than donthate.

Xbox fanboys make this too easy.

ChuckTheIceMan3168d ago (Edited 3168d ago )

Post Made in error

donthate3167d ago (Edited 3167d ago )

dragon:

I said my peace and you are still hanging onto "Playstation" is doing great, but Sony corp is not.

Citation is in the Yahoo Finance. This is common knowledge in the public. You can spin it, but you cannot hide the facts!

The stock price speaks volume about a company and it's health. It is pointless to discuss what Xbox division does, because MS can absorb it and clearly have no issues spending when they spend more to buy Minecraft than Sony sold to keep cash.

MS has more than three times cash on hand to buy Sony! However, the liability of owning Sony would cost MS dearly so thank God MS isn't doing that. Why F' up a good company?!

Playstation might not drag down Sony, but Gakai and the rest of the company sure is!

All this talk about spinning of Xbox division, should really go to Sony. They should spin off the Playstation division so it can live on instead of having it's resources diverted off to fuel a dying company.

Credit is going to get hard for Sony to get moving forward with that junk status credit. By the way, that is also public news!

I know you don't like to hear the truth and that is why you are trying to spin it, but DEAL WITH IT!

:D

+ Show (12) more repliesLast reply 3167d ago
bintarok3168d ago

Just another fear mongering article based on sales numbers to curb healthy competition. One group is working to make good progress, while the other is reaching to paint a 'damage is done already' image forever. Repeat and rinse.

joeorc3168d ago

@Strikepackage Bravo + 11m ago

Im not sure if what you say is true, but if it is,that only makes it easier for Sony to sell off Playstation if they ever needed to. It also allows them to hide certain financial transactions between the two entity's. Im guessing Sony set this up back in the PS3 days when Playstation was in a bad way and in danger of being sold off to save the larger company.

It is a fact on what I just pointed out, as a matter of fact , no it does not make it easy for Sony to divest itself if that asset in order to "save itself"

Example: PlayStation is the 5th largest asset that is bringing priority profits into Sony! Its not even the largest.

2nd

"It also allows them to hide certain financial transactions between the two entity's. Im guessing Sony set this up back in the PS3 days when Playstation was in a bad way and in danger of being sold off to save the larger company."

For one you do not sell off the asset that is bringing in profits you restructure those parts that are not in a conglomerate! Remember its a conglomerate its assets far and a away are high , but revenue was not able to overcome operations expensed through out the year. That's why you restructuring during to down size to offset Loss! Which Sony and the board. Two years ago Sony's stock value was worth in the 14's to 17's its now in the high 20's into mid 30's

There is a reason, Sony was not in danger going insolvant when your company has over 140+ Billion in assets. When a single building went for over a billion by itself!

There was no sale or for seen future sale of playstation as a asset , because in ten years time, playstation has in total generated into retail over 50 billion in revenue!

That is an asset no holding company is going to get rid of!

And in Japan in the past 40 years no company the size of Sony has ever had a hostile take over from a west base held company in the past 40 straight years

Pickens failed, and Loeb also failed in recent times..its just pretty much not happening, ever at this point.

LifeInNZ3168d ago

@save:

The logic of X1 is failing because its not selling as much as PS4, as you suggest, is just plain hyperbole. If we're going solely on sales numbers then we must therefore be suggesting that the PS3 was a failure because it sold less than the PS2.

If the X1 ends up selling more than the 360 then can it be considered a failure?

joeorc3168d ago

LifeInNZ + 3h ago
@save:

The logic of X1 is failing because its not selling as much as PS4, as you suggest, is just plain hyperbole. If we're going solely on sales numbers then we must therefore be suggesting that the PS3 was a failure because it sold less than the PS2.

If the X1 ends up selling more than the 360 then can it be considered a failure?

While I get what you are pointing out , also take into account with back wards compatibility is Xbox one now likely to sell more than the xbox 360?

Than one also has to look the xbox360 as a metric on how well the Xbox one does over its lifetime for market growth and its expansions to its market user install base and its sales peaking and time to see its data over the cycle.

While I whole heartily agree its just fear mongering in such q short time.

About the products cycle in the fact were really just getting started, not enough data yet.

But if the index value over the cycle does not show growth in world wide markets outside of just the strongest market that the xbox360 has grown in. If those level flat or are reduced by a 10 to 20% than that would be quite a problem. But that's a bridge til we come to it type thing and its just too early in the cycle to get that reliable indexing had data.

But as it is now, the data is not looking good. Now this is just by early key indexing, nothing really out of the ordinary this early into a cycle. But year 4 and 5 will geve us a better idea.

But if I was a betting man, in my opinion I would not hold my breath getting better for xbox one expanding a growth indexing to match or increase past the xbox360 in markets other than where the xbox360 did fantastically good in. And that is a problem, its not sales so much as Market growth indexing penetrating past the xbox360's growth. It must grow in the market or it remains flat or reduced in market potential.

Death3168d ago

So market growth is more important than profit? Interesting observation. What would happen if you lost both market share and profit? I'll give you a hint, it's called the PS3 and the WiiU. Sky didn't fall for either company did it? To even suggest Xbox is in danger is ignorant at best when the company as a whole is doing very well and the platform itself makes the company money. The only complaints investors have is other divisions make more profit. Same can be said of Sony.

DragonKnight3168d ago

@Death: Again, Xbox has never made MS money. I don't know where you think it has, but it hasn't. Even with charging for Live for now the 3rd generation has not put Xbox out of the red.

3168d ago
triple_c3168d ago

Don't get me wrong, the Xbox One is doing good sales wise but the PS4 is doing so good that it's making the Xbox One look like it's failing in comparison..

Death3168d ago

Only to PlayStation fans. Anything not PlayStation is failure.

DragonKnight3168d ago

No, not only to Playstation fans. To people with common sense. A gap of 2:1 in sales doesn't sound like success to anyone that can do math. It technically doesn't mean failure, but it looks like failure. Except, of course, to Xbox fanboys like yourself whose PS4 sits next to his Xbox One.. right?

ChuckTheIceMan3168d ago

Both systems are a resounding success so far.

3168d ago
GNCFLYER3168d ago

Lol. Being a Playstation fan was fun last gen. For the first few years all we heard was sony was going out of business.

Tsar4ever013168d ago (Edited 3168d ago )

This is Stupid, XboxOne isn't "Solace in Failure", Microsoft just made some serious PR and marketing decisions off the dominance MS had with the x360. Kinect & 3rd party monopoly control has swelled MS ego enough they felt they could do NO WRONG. DRM, No used games, always online, 24Hr check in. BOOM!! PR FAILURE!!!!!

Sony had the same problem. Sony's ego was over blown when they Launched the PS3 for $600 off the over bearing dominance of the PS2. "Nextgen won't start until WE SAY IT DOES!!" Whoah, Huge Ego Sony!! I believe MS and XB1 will be ok, They got Bill Spencer running the show now. He's straightening up XB1 from here on.

+ Show (6) more repliesLast reply 3167d ago
FallenAngel19843169d ago

Xbox One is Microsoft's fastest selling console. I'd hardly call that platform a failure. Microsoft clearly has been very successful in strengthening the Xbox systems as a pillars in the industry.

I'd anybody finds solace in failure its Nintendo. Wii U is their worst selling console and they aren't even getting aggressive about it. They'd rather apply a price cut to 2DS than the struggling Wii U.

FoxyGotGame3168d ago (Edited 3168d ago )

Yeah Xbox One is doing fine and is not a failure ...

I don't own a Wii U nor do I want to ...but why the hell bring Nintendo/Wii U sales into this? You're that insecure by a 'nothing article' that you need to pick on a lesser selling system? Yet you all complain should someone mention PS4 VS X1 sales???

LMAO what a cheap hypocritical shot.

Wii U is the X1 nearest competitor (Gen 8) with 10 mil - 13 mil. Arguably the quality of first party Nintendo games wipe the floor with MS & Sony 1st Party put together.

You fanboys... /

thisgamer5033168d ago

Isn't this WHOLE thread filled with douche fanboys picking on a console selling less? Or are you just referring to when someone picks on the lesser selling console that you actually like?

lolosgolos3168d ago

One of the most stupidest speculation articles ever. Starting development on a game for Windows 10 and Xbox one gives you better return plus wider audience at this point in time.

Father Murder X3168d ago

The name of this site should News Against Microsoft instead of News 4 Gamers.

Why o why3168d ago (Edited 3168d ago )

Lol, true but take solace in the fact last gen it was sony getting the majority of these dumb articles. Some n4g users were sympathetic, some were not and used them as fodder. Ill stand by those who stood by me lol.....the others can take a run and jump jovially speaking of course

green3168d ago

"Lol, true but take solace in the fact last gen it was sony getting the majority of these dumb articles"

Okay lets see, last gen,how many dumb articles did we get prior to E3 2009 that Microsoft was going to drop support for the Xbox 360? Let me answer that, it was daily.

How many articles did we get that Microsodt is greedy because they charged for Xbox Live? This gen not even an article about it. I wonder why? It was at least two a day.

How many RROD articles did we get? Countless

How many articles saying that Microsoft had no games meanwhile discounting XSBLA and Indy games and the few big exclusives they had yearly? Countless. Now multiplats, indies and downloadable games are the added to exclusive lists to pad the numbers.

To say that SOny got the majority of negative news last gen in my opinion is not true. At most, i will say its launch window but once the RROD fiasco hit, it was Microsoft.

Why o why3168d ago (Edited 3168d ago )

I saw many unwarranted articles.... from 'no games', to 'sales gaps' to 'dead on arrival' articles from leading games magazines to cell processor downplays, df and lot articles...even as far as finance issues. I also said the majority, not all but if you're going to sit there without acknowledging the western medias bias towards their own (360), despite rrod then you really had some super blinkers on my friend. Nothing like this gets split an equal 50 50.

This gen I've noticed more negative x1 articles... some unwarranted but some in response to ms's own doings. I don't bother jumping on the bs articles to throw in faces but some make sense. Rrod backlash was warranted imo. Calling them countless is kinda like trying to sweep it under the carpet. There were many who claimed it was ps fanboys that had the issue and that rrod was nonexistent. ...yeah bro...I've been here since 07

xTheMercenary_3168d ago

I'm getting sick of these articles. Why cant gamers just sit and talk about games in a positive way instead of fighting over which console is better?

Jayszen3168d ago

Agreed, it is now just silly and unnecessary. When I am enjoying a particular game, I never think "thank god the PS4 is in first place because this game is fun because of that" It is the games and gaming that should matter. This childish "mine is better than yours" serves no purpose.

thisgamer5033168d ago (Edited 3168d ago )

Because an xbox article can't pop up without getting jumped by a bunch of salty sony fans. It happens in Sony articles too but not NEARLY to the same extent as pro xbox articles.

Edit: This would obviously not be counting the biggest xbox trolls. There are a few around here that would make it seem like thousands of xbox trolls are hitting articles. I do admit that the xbox trolls are a bit more full of hate, but the number Sony have in the troll department just can't be messed with. I mean what, 25 million or so?

Show all comments (63)
100°

6 Fun Games Where You Actually Play As The Bad Guy

While the mainstream media always sees things turning in favor of the hero, here are 6 games that own being a bad guy.

Profchaos2h ago

Pretty much all of these games listed are based around a morality system you don't have to be bad and you don't have to be good.

It seems to have left out some real amazing games like red dead redemption 1/2,ass effect and true crime la/ny

Tacoboto1h ago

Armored Core VI?

Ok, I'm really missing something here. Just beat chapter 3 earlier this evening, unlocked A-rank Arena fights. I'm not seeing or sensing any branching paths or morality system and I've done every side mission and arena fight available to me up to that fight.

Is something big coming soon to branch the story?

banger881h ago

No mention of Grand Theft Auto? Saints Row (original trilogy), Manhunt? Also The Suffering (depending on the ending you get).

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