Five Reasons Why PS4 Should Outsell Xbox One
Gamers Have Long Memories
Mishandling of digital rights management (DRM) by Microsoft has generated negative sentiment about Xbox One. Sony has masterfully seized the advantage from Microsoft’s mishandling by creating a positive buzz about PS4. Now Microsoft has rescinded restrictions on used games and the requirement for once a day internet connection, but the riled up gamers are not about to forgive Microsoft easily. Gamers have long memories, many of them going back to first generation consoles. The following comment by Jonathan Crane on my recent column
Microsoft Gives In To Gamers On Xbox One Used Games, Connection Requirement, represents the sentiment on many comments on gaming forums, “The action they (Microsoft) took amount to the little boy putting the cookie back in the jar after being caught.”
While Crane was restrained, a reader commenting under the name Evo_Nitemare, represents the feelings of more vocal gamers on gaming forums, “Face it Microsoft already did enough damage to themselves and consumers will no longer trust them. I’m sure Microsoft will never earn my trust.”
In response to a question posed by
GameFly, a major video game rental service, preference for PS4 ran 120% above the preference for Xbox One.
Those who are firmly in the Xbox Box camp are not going to be influenced. However, there is a substantial population of Xbox owners that may consider PS4 due to Microsoft’s conduct. A reader going by the name of LagerLove in his comment on the above referenced column sums up the opportunity for Sony, “I adopted the original XBox when it became available so long ago. I am an original XBox live subscriber and I still am. I see a company that forgot about what is most important. It is not the profit or the stock price. It is the customer. Take care of your customers and the rest will follow. After watching all of this, when my XBox 360 dies (I am on my second), I am done. I can’t say that Sony has inspired me. I’ll take a closer look at that I guess.
Nintendo Nintendo has seemed to be the company that is focused on it’s customers, perhaps they will come up with something. Sony, Microsoft, play your games…I am voting with my wallet.”
Price
PS4 is priced at $399, whereas Xbox One is priced at $499. Cost conscious customers may choose to save a $100 on the console and buy an extra game.
Kinect
Xbox One costs $100 more but comes with Kinect. Kinect is the motion sensing controller for Xbox. Some love Kinect while others do not want anything to do with Kinect. There are substantial privacy concerns about Kinect. In Xbox One, Kinect, which contains a camera, will always be on by default and the concern is that Kinect can spy on the gamers in the privacy of their own homes.
Sony will be able to attract those consumers concerned about privacy.
Diffused Focus Of Xbox One
With PS4, it is clear that it is a gaming device meant for gamers. Xbox One is a different story. Microsoft is positioning Xbox One as the media center in the living room. At the introduction of Xbox One, Microsoft did not even bother to show games during the first part of its presentation. Microsoft itself describes Xbox One as an all-in-one home entertainment system.
Microsoft has made it easy for Sony to make a compelling pitch to those interested only in gaming.
Heavy Dependence On Cloud
Xbox One appears to be heavily dependent on cloud. Traditionally, cloud shows lag which is not suitable for many games. Even if Microsoft overcomes the lag issue successfully, there is no solution to slow internet connections and those who do not want to be connected to the internet while playing.
Again Microsoft is providing a nice opening for PS4.
From an investment perspective, both PS4 and Xbox One have generated positive sentiments for the stocks of Sony and Microsoft. Both Sony and Microsoft are conglomerates and their stock price movements depend on many factors. The
Wall Street analyst community has not yet caught up with the negative sentiment against Xbox One, hence the present stock price of Microsoft
does not discount the risk related to the potential under-performance of Xbox One relative to expectations.
- http://www.forbes.com/sites/nigamar...ps4-should-outsell-xbox-one/?partner=yahootix
