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The PlayStation 5 & Xbox Series S/X Competition Will Determine the Future of the Games Industry

As November approaches and the next console generation begins, Sony and Microsoft are both indirectly vying to define the ninth generation.

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ZeroBlue227d ago

The quality of the investment isn't measured by the price tag.

26d ago
ArchangelMike27d ago (Edited 27d ago )

Healthy competition is good for the industry. I just hope it will mean a reduction in game prices. If Sony keeps their prices at $70, while MS offers those same games "free" on game pass - then gamers will go where the games are cheaper. It's a simple value for money propostion. Sony has to compete on that front, and I hope they will.

neutralgamer199227d ago

That is very true I don't buy games at full price anyway I wait a year or more when they come down on prices but now if there's somebody I wonder if they will ever come down to that sweet 15 to $20 range

one thing I have also noticed lately is a lot of these games which get physical release don't have enough copies to where six months after release places like Best buy and Amazon run out of them and they never restock it

For example that bayonetta and vanquish collection is no longer available on Amazon ps4 version and there are many other examples

So it used to be wait and you can save money but now if these games will go out of stock then their prices go even higher on places like eBay

darthv7227d ago

I think your example is just a sign of the times. Publishers have been wanting to save on production costs for years. It started with cutting out manuals and now its cutting out physical copies.

Producing a game and packaging it and selling it for $50 only to have it sit and eventually go in the bargain bin is more on the retailer than the publisher. Retail copies not selling means they wont order more or any of the next release. Publishers get paid selling to stores, retailers get paid selling to consumer.

With things going digital it cuts out a major cost of production and the publisher gets a bigger cut of the profits (digital stores get a portion). So while your routine of waiting for the bargain bin may be in jeopardy, know that digital sales may be your only solace. Probably not as often or aggressive as a retailer clearing stock but they will happen.

RightFootGames27d ago

Darth putting the game in a box is not a big part of the production cost. Eliminating the box is not why they want digital, they want digital because digital allows them to control the price. When they get all digital what's going to happen is the price of games will remain high. Look at DLC, DLC from the big publishers basically stays the same price permanently.

Digital is the biggest Trojan horse in gaming, as soon as people let it in the castle the cheap games we have today will be burned to the ground.

sampsonon27d ago (Edited 27d ago )

@RightFootGames: Do you even own a console? All i see are deals in the ps store. Summer sale this, fall sale that, winter sales, and publisher sales. Games come down in price as soon as the game initial sales start to slow down.
So i ask you again, do you own a console?
Another thing, these devs deserve to be paid for their work. They work their butts off long hours to release their games. I think people should support them if they have delivered in the past.
And it sounds like you need to find a job.

RightFootGames27d ago (Edited 27d ago )

Yea, what will you say when Microsoft prices Sony out of the industry with subsidization and paying billions to keep games of competitors systems?

Don't you understand, Microsoft doesn't need their gaming business to make money because Windows and other Microsoft arms make so much money. Sony can't just give their games away, they need to make a profit to stay in the business.

Microsoft is subsidizing Sony out of the industry in a long term play for control. It's not going to end with Sony competing it's going to end with Sony not being able to afford to continue PlayStation.

Shane Kim27d ago

It's Sonys best division and the one wich makes most money. MS isnt changing that just because they bought Bethesda.

DnBSkillZ27d ago

Ye but the thing is Sony might go Bankrupt but how many companies will go after to buy playstation trust me Apple will be one of the first ones to want to buy the playstation brand

RightFootGames27d ago

Shane Kim

You clearly did not understand what I said.

chronoforce27d ago

Maybe if MS make better games in the future, Sony can be worried. So far they have nothing to worry about as people have no problem paying for Sony's AAA games because they are just that better than the competition. Sony have produced S tier games this generation so if mediocrity continues to come out of Xbox games studios people will be even more justified in spending the money to play better games.

RememberThe35727d ago

You're saying MS is trying to Walmart gaming. Price out competition. Sony isn't this tiny company that can just get stepped on, market caps don't define what a company is. Sony is a giant in entertainment, with a massive collection of IP. As well as their consumer electronics and burgeoning semiconductor production and financial services, which apparently is just printing money. Sony will always be fine and so will PlayStation. Let's also not forget the role the Japanese government plays in all this as well.

RightFootGames27d ago

RememberThe357

Listen, PlayStation subsidizes the less profitable parts of Sony versus Microsoft which the other parts of Microsoft subsidize xbox.

And you're right it's not just about market cap, but what you fail to understand is how these companies hold wealth and how credit ratings work. Microsoft has more tangible cash where as Sony's wealth is largely tied up in investments and holdings and goods. And Microsoft has such a high corporate credit rating they can spend 7.5 billion and pay 7.5 billion. Sony would have to raise the capitol to spend that kind of money and would have difficulty finding creditors due to the solvency issues they have had in the past.

Sony isn't generating money the way Microsoft does. There is as much difference in the way the two companies hold wealth as there is in the total worth of the companies.

Microsoft can just play the long game and bleed money to bleed off PlayStation's customers by taking losses to make everything so cheap Sony has to lose money to stay competitive which Sony simply can not afford to do.

The basic thing in the simplest terms is Microsoft can go 10-20 or more years and not generate profit (or very little profit) from xbox Sony can not do the same.

Microsoft is just bleeding Sony out.

Either Sony keeps prices up and loses customers or Sony lowers prices and loses money. That is the position Microsoft is putting Sony in.

+ Show (4) more repliesLast reply 27d ago
lifeisgamesok27d ago

You heard Jim Ryan, if we want big budget AAA exclusives on PS5 they can't do a Gamepass business model

I don't want a Gamepass for PS5

ZeroBlue227d ago

No, they won't. Sony will dominate once again, like they do every gen, because they always have a far better library of games. If the price is all that matters to you, you have immediate access to tens of thousands of free games on your phone. People are happy to pay for quality.

Godmars29027d ago

Did you honestly ask for price reduction in the face of price increases?

A more reasonable request would be towards more reasonable pricing, not being expected to pay $70 for a so-called AAA game that little more than seasonal reissue, but that's happening too.

Meanwhile, the issue that many should be seeing with Game Pass is MS moving towards a system where you rent rather than own games. Paying $200 a year to play one or two titles you might actually play among hundreds is not a good value. Especially when all of them can be taken away without warning.

27d ago
Godmars29027d ago

@Elite718:

1-2 titles that are going to be played seriously from a service that's going to keep offering new titles to keep you subscribed with the ultimate, prolonged goal of eventually being the only option for games.

I tried PS+. I have several streaming services. Barely used the former and only actually watch some of the latter. That's just how people are, and the services are made. Dis PS+ all you want, praise GP all you want, just be aware that the day-one titles they use to get you to sub are the same one they're trying to use to keep you to sub. Buying them cheap is just a redundant option that can as easily get you to buy games when they're taken off rotation, then put back.

27d ago
DFresh27d ago

Game Pass isn’t free.

ArchangelMike27d ago

I did't say game pass was free. I said the games would be "free" - (notwithstanding the price of the subscription) in comparison to paying $70 for a new game of day one, it's a good proposition.

Rude-ro27d ago

Outside of the marketing deal for a third party game, of which is unknown, supported with the seasonal approach/dlc, and microtransactions...
Microsoft does not have a worth while library worth the monthly commitment.
Not even on pc.
And they fluff the numbers by offering original, mid tier and deluxe versions of the title while it is still just the same game. But it fluffs the numbers of offerings.

There is no intelligent argument when they output and offerings from Microsoft are not even worth this gens $59 price tag like crackdown, sea of thieves etc..
Those, at best we’re $30 cheap indies if not should have been free to play.

blacktiger27d ago

highly doubt it, quality is important and i been hearing lag is a big problem

sampsonon27d ago (Edited 27d ago )

I want Sony studios to keep making the best games on the market. I want them to invest more money in AAA games every year. To do that it costs money so i am fine paying for "QUALITY" instead of going the cheap route.
What's that saying again? Oh! "You get what you pay for." I realized that when i bought a 4k tv last year skimping on the price and regretted it every time i watched it. So i bought another tv a couple of weeks ago and spent the money this time and WOW!
I think games as a service will destroy the AAA single player game because of how expensive it is to make them. The time it takes as well. I remember Spencer saying that single player games aren't profitable, and that MP games are the future. Think he's changed his mind? Not me. He also said that he wants his studios to produce 12 games per year. So tell me, how is that going to happen unless they are smaller projects like A and AA games. Grounded, Sea of Thieves, Bleeding Edge, Ori, and State of Decay 2 shows this outcome already.

I want my big budget single player games. I hope Sony wins this gen to keep games as a service from swallowing up everything. Because even though it's cheap?

"You get what you pay for"

Charlieboy33327d ago

You get what you pay for though...."value" does NOT equal "good" by any means. A fact of life which is true in more than just gaming.

+ Show (8) more repliesLast reply 27d ago
claudionmc27d ago (Edited 27d ago )

I've been a fan of ps since ps1, then ps2, ps3, ps4 and ps4pro, and I was very very excited with the PS5. Buy now, honestly I think this move of Sony with the new spiderman (I'll have to re-purchase the first one and my progress won't be counted), the movement with horizon 2 and sackboy adventures (both coming out to ps4, letting me note that those are not true next gen titles), the ZERO news about the internal components locations, refrigeration, etc, the doubts about the variable frequency GPU and CPU, the more expensive controllers, the more expensive games, the $500 console which is less powerfull than xbox series x in CPU / RAM / GPU and 175gb less storage... this is the most abusive movement I've ever seen, even more than the $599 PS3 which had a "justification" due to the components in the console itself.

I'm sorry, but I really want Microsoft to win this next gen, or at least that it could sell on par with PS5, so in this way Sony can react and stop being an abusive company just because it has the majority of the market cake.

SullysCigar27d ago

That was my reaction too - dafuq did I just read?! lmao

RememberThe35727d ago

I went off little on Sony and even I don't know wtf this is 😂

Sony got the games and that's what we're here for. Non of the stuff listed is disqualifying. Annoying, yes? Dumb? A little. But the PS5 is priced perfectly for it performance and we can expect amazing games in the first year alone.

I'm happy to see Xbox rise up after being so pathetic for so long. But Sony is doing their best and as much money as MS can spend to buy IP, Sony has those assets in house, grown from much smaller investments. MS had to spend 7.5 billy just to approach even footing with Sony and Nintendo with their in house catalog. And nothing is stopping either of those two companies from expanding themselves.

Frankly it's awesome to see the big three doing so well individually. Hope it lasts.

SoulWarrior27d ago (Edited 27d ago )

An abusive company? Did you read that comment before posting it? What a load of nonsense. The hate Sony is getting is honestly ridiculous imo, but at the same time apparently Microsoft are saints for throwing stupid amounts of cash around to keep numerous decades old multiplatform games series from the competition and is somehow being spun in to being pro consumer lol? Such a joke.

And you're really comparing the usual next gen price hike that happens everywhere in the world but america, a couple of cross-gen games and not giving away a free remaster to the PS3 misteps Sony had back in 2006/7? Come on man.

27d ago
SamPao27d ago (Edited 27d ago )

..All that talk and NOT even ONCE did you talk about the unmatched quality of games from the playstation camp. (Excluding nintendo, their games are excellent)

The only reason PS is on top is games. And that is not changing as far as it seems.

lifeisgamesok27d ago

Yes, and this is all PlayStation needs. As long as they have the best games, they will stay on top of the industry

ZeroBlue227d ago

Yeah, it turns out whatever you think of Playstation, they absolutely nail the most important issue, and they consistently do it every time.

outsider162427d ago

Yup! God of War Ragnarok is gonna make sure of that.

ClayRules201227d ago

Exactly. This is what what gamers want, GAMES. The fact that Sony & their studios deliver high high quality games, and a great quantity of them throughout the generation is why they continue to be successful again and again. Amazing games from their studios, a pedigree that’s unmatched.

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lifeisgamesok27d ago

This is the most absurd comment I've ever seen on this site

Wow

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yomfweeee27d ago

Sorry but why do you have to repurchase SM? You don't. You want to play the remastered version? Then you pay. That is nothing new Sony introduced. Creating false hate.

CaptainObvious87827d ago

And if ms wins next gen, especially after their pathetic buyout of a multiplatform publisher, what the hell do you think is going to happen to this amazing industry?

Have you not being paying attention at all, whatsoever?

sin727927d ago (Edited 27d ago )

Please stop !

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Einhander197127d ago

Gamepass is a rip off anyway, I prefer physical copies of my games. Paying for gamepass year in year out to play games digitally no thanks.

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PhoenixUp26d ago

How is a subscription service a ripoff?

If you want to buy those games then do so. The option is available for people to try a huge amount of titles. It’s no different than PlayStation Now, Netflix, Hulu etc

+ Show (1) more replyLast reply 26d ago
manabyte7727d ago (Edited 27d ago )

I can see a scenario where Sony becomes more like Nintendo. MS would be competing directly with other financial titans like Google, Amazon, and possibly Apple. Similar to how Nintendo will always be self sustaining because of their first party IPs, Sony can also be self sustaining with their own stable of first class IPs. Everyone is correct that Sony cannot wage a war of dollars and is reliant on their products making good profit without the benefit of subsidizing. And if that scenario came to be, Sony would thrive just like Nintendo, but in a different space. Maybe MS would even put IPs on Sony’s consoles similar to how they do with Nintendo since they’re in a different space. Any moves by Sony are likely to be smaller selective acquisitions where they’ve been incredibly successful grooming their own talent. In any case, Sony isn’t going anywhere regardless of how many major acquisitions are made.

ZeroBlue227d ago (Edited 27d ago )

Hey, if that's what they wanna do, more power to em. Join the trash services like stadia and luna in that market, I'm sure they'll make boatloads of money. Personally, I'll stick to owning games that are actually good.

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