By Bijoy Babu
The reign of the seventh-generation video game consoles is finally coming to an end. After a staggering 8 years with Sony’s Playstation 3, Microsoft’s Xbox 360 and Nintendo’s Wii, it seems like a perfect year to start a new generation. With the Playstation 4 and Xbox One (sorry Nintendo, you came too early to the party:) right around the corner, it looks like there will be a close tie between these 2 iconic game systems. After years and years of preparation, these 2 enormous tech giants are silently waiting for their profits to skyrocket, but from what we have seen at the Electronic Entertainment Expo (E3) 2013, did Sony steal the show by unveiling it’s distinctive, consumer friendly and competitively priced game console that goes head to head with Microsoft’s Xbox One? Many critics, especially hardcore gamers have given their honest beliefs in saying that the Japanese-based company is the clear winner of the next installation of video game consoles.
Like most people, sales and profits are what they look at closely to determine who is going to have the upper hand once these systems launch. Given the fact that Nintendo has already released its latest console, the Wii U, back in November of 2012, the company’s shares had fallen about 10% (nintendolife) immediately after release, followed by a huge 51% drop in sales three months later. It seems that not only gamers, but the average consumer was not impressed by the new additions and features that Nintendo had put into their system after they released the globally acclaimed and original Wii, which is still the highest selling seventh-generation video game console to date with over 100 million units sold. With the sales of the Wii, which dwarf the Wii U, we can respectfully say that Nintendo was hit extremely hard this time. Nintendo, what happened?
Following the sales of the Xbox One on the other hand, is a little bit easier and clearer to visualize. Taking a moment to look back at Microsoft’s previous sales with their previous consoles, the original Xbox and Xbox 360, they have been fighting for a long time with competitor Sony to bring more of their product to consumers. Microsoft released the original Xbox back in 2001 with a plan to get the U.S. into the video game console industry. The sales had been successful and the reviews were positive, and Xbox had become a full-fledged brand name in the world of consoles. It was where Microsoft had beaten Sony by unveiling the Xbox 360, one full year before Sony’s Playstation 3. Microsoft had learned from the original Xbox that even though sales were solid, they were nowhere near that of Sony’s Playstation 2, which is to this day the highest selling video game console in history with over 150 million units sold compared to the Xbox’s 25 million units sold. Leading the current generation of consoles is the Xbox 360 with about 77 million and about 75 million units for the Playstation 3. Even though Microsoft sales have soared over the past couple of years, thanks to its Windows operating system and Xbox consoles, the company has been reporting gigantic falls in the recent months, which critics say is the fault of their newly redesigned operating system Windows 8. (CNET News) Sony though, is keeping it together with a solid growth pattern.
So, what it ultimately comes down to was the presentation that these two companies had put together at E3. Many people can argue, but most would say that Microsoft had put on a rather frustrating and disappointing (Forbes) show as they showed off the features and price of their Xbox One. While the features of the Xbox One were unique and interesting in their own way, many gamers stated that Microsoft was aiming at a broader demographic, which led many people to believe that Microsoft was focusing more on streaming entertainment as apposed to video games, something the Xbox One was made for. Sony on the other hand, had taken the complete opposite approach. They had talked specifically to their core audience, the gamers, stating that this is the best place to play games period. Sony had even raised the limits by announcing some features that are either absent or restricted on the Xbox One that have actually something to do with games rather than online T.V. services. Sony definitely knew what they were talking about once they unveiled the price for the new Playstation 4 was $100 less than the Xbox One. That had many people turn their heads to Sony and therefore not only to respect, but to believe in Sony to bring what their audience desires.
So after these two unlike presentations, most people have already a good sense in their head, not only which of these companies will release the best video game console of the next-generation, but also which company will lead the sales. Most people are defending Sony, but will Microsoft make a surprise comeback into the video game industry?
It will be interesting to see how the competition between Microsoft and Sony pan out in the near future. You would think that since the price for the PS4 is 100 dollars cheaper that the demand would grow, even if consumer tastes do not. Maybe Microsoft will get some bonus consumers who wouldn’t otherwise buy a game system if it wasn’t for all the additional features. Only time will tell what consumer preferences really are.
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