SHOULD MICROSOFT FEAR SONY???

March 31, 2009

ps3_consoles1killzone2picI found this article at www.n4g.com/ps3 and i thought it was very truthful although some would disagree. Either way i still have all 3 consoles and i find myself only playing my PlayStation 3.

The Xbox 360 is currently second place in the console wars race. Microsoft, however, seems more concern about the Playstation 3 than the leading Nintendo Wii. They even went so far to discredit the Nintendo Wii

The Xbox 360 had a year head start on the Playstation 3. As a result on being on the market earlier, Microsoft was able to get a first-mover advantage and got a nice lead before the Playstation 3 launched.

If Sony didn’t delay the Playstation 3, the situation would have been a whole lot different. Sony’s high-definition video game system would have outsold the Xbox 360 (even with the higher price tag) based on hype alone. Not to mention that many of the games the Xbox 360 is getting might have become Playstation 3 exclusives.

In reality, the Playstation 3 is selling about even with the Xbox 360 if you don’t account for the year head start (even more in Europe). Furthermore, the Playstation 3 cost a lot more and had to face stiffer competition than the Xbox 360 did when it launched. As much as Microsoft like to brag about beating Sony, the difference between the two isn’t all that great if you take in the context of the situation.

Grand Scheme

The Xbox 360 is outselling the Playstation 3 handily. However, Sony has more than one video game system. The PSP is selling solidly while the Playstation 2 is maintaining a steady pace. Therefore, Sony actually has a bigger market share than Microsoft. So while Microsoft only likes to concentrate on winning the battle against the Playstation 3, they lack the punch to compete against Sony (and Nintendo) in the grand scheme of the gaming industry.

First-Party Support

Microsoft is growing heavily reliant on third-party support. They recently shut down Ensemble Studios (Halo Wars), let Bungie (Halo 3) go independent and did not attempt to buy Bioware (Mass Effect). Since third-party gaming companies can switch alliances at any time, Microsoft is walking a tight rope.

Sony, on the other hand, is quietly building up the biggest first-part development core in the gaming industry. Their studios span all three major regions (Japan, North America and Europe) and feature tremendous talent. First-party Playstation 3 games are gaining praise and popularity.

With more third-party opting to release multiplatform games, exclusive games on the Xbox 360 and Playstation 3 may ultimately determined the battle between the two high-definition systems. With less fire power, Microsoft should definitely be concern about Sony.

Free Online

Finally, Xbox Live paid subscriptions are one of the biggest revenue streams on the Xbox 360. The Playstation 3 offers free online play over the Playstation Network. Since the differences between the two networks are superficial, Microsoft should fear for their pockets if the Playstation 3 ever caught up to the Xbox 360 in sales. Not only will they lose market share but they will also lose out on extra revenue since many people will rather pay online for free than pay for it.

The Xbox 360 is only dominating the Playstation 3 in North America. The two systems are just about even in Europe while the Playstation 3 is leading handily in Japan. Because of that and the above factors, Microsoft has every right to be concerned about the Xbox 360 lead over the Playstation 3.

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