With GDC over and done with we’ve seen some fair announcements from Nintendo and some really big things came out of the Sony camp however the Microsoft camp was silent claiming that they’d like to store their secrets at E3. This has led many to believe that Microsoft’s western reign is over without giving Microsoft the chance to speak. This console cycle has been plagued by people jumping the gun with fanatical claims as to who’s product is finished, who’s thriving, and other such misconceptions. It was only but 2 months before the Game Developer’s Conference that people were claiming the PS3 was going to tank and now no one can wait for a price drop. Now everyone claims Microsoft won’t see the end of the year.
At the beginning of the console cycle Microsoft needed to come out making noise after the beating the Xbox took at the hands of the Playstation 2. Their advertising worked and 360s are all over the western half of the world. They’ve developed a bit of a lead and they now no longer need to have their news open to the public at all times. Sony on the other hand needed to bring the big guns to the forefront and it obviously makes them look superior to the silent MS, what most speculators don’t understand is business. Despite my love for separation of games from corporations, I admire Microsoft’s battle tactics. They’ve played this console cycle very wisely and have not done anything more than they needed to do and it seems they’re sticking to that plan currently and at E3 where I believe we’ll see the MS guns come out, I think it will finally convince people that this console generation is not going to be a repeat of the last cycle having one completely dominant console. The PS3 and the 360 will be in constant competition with one other until MS decides to release their next console as the PS3 is planning to be a 10 year console.
This year’s E3 will probably dictate the rest of the console cycle it truly feels like a crossroad, my personal belief is that after its all said and done we’ll see MS and Sony looking equal and that we’ll see the anti/pro-MS and Sony more limited to just the internet again rather than the war in the streets its become. We can only hope that will be the effect at least as I’d love to talk about game vs. game again rather than console vs. console. The console is just a name and a means, I hope after this E3 people will realize that and stop making themselves free advertisements.
Expect this discussion to take place on our podcast called Vice Weekly which is available every Sunday.
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Great article. Sensibility seems to be lacking in many gamers these days.
You mean “one complete dominant console,” not “one complete dominate console.”
I’m fairly certain this generation ALREADY has on completely dominant console. It’s called the Wii. Heard of it? So has your grandma.
*one, sorry
A factor which is rarely mentioned when discussions about the competition between Sony and Microsoft in this current generation, is profitability. Sony sell their PS3 at a very high price. MS sell theirs at an extremely low price point, and both have used their respective strategies from the beginning. And, sure enough MS have a large install base, but they are in fact only about 7 or 8 million consoles ahead of Sony, with the gap closing. Microsoft have sold their console at a massive loss. They have absorbed the cost of poor manufacturing and material standards which lead to a high failure rate to ensure they had an early launch for the 360, one year (?) ahead of the PS3. And, they have been paying third party developers left right and centre to ensure that titles were either exclusive to the 360, were multiplatform where they had been previously Sony-exclusive, or have dowloadable content exclusive to the 360. Yet for all this effort and cost, of the 120 million console gamers out there, MS have less than 20% of that market, while Sony enjoys the lion’s share with its 10 year old and highly profitable PS2 (most PS2 owners also own a Wii). Sony have themselves stated that given the current economic climate, they are focused on profitability and not the install base, for the PS3, at the moment. The increased install base will happen as the PS3 comes down in price, but it will only come down in price as the manufacturing process is streamlined, and the electronics shrunk down, and production ramped up to make the PS3 profitable.
So, on the surface, Microsoft and Sony are already starting to look roughly equal in terms of install base. Yet, beneath the surface, I think the story is very different. Microsoft are hemorrhaging money every day in their bid to stay ahead, but with little to really show for it. In this global recession, the 360, a cheap and cheerful console with hidden costs and no support for blu ray, is starting to lose ground to the PS3, a more expensive but better value for money console that has no hidden costs and comes with a default blu ray player built in.
@BUDDY GUY
Nice one, lol. This article does make quite a bit of sense, but lately I’ve been thinking that Microsoft is planning on blowing away everyone in E3 or they don’t have anything at all (then that would mean they’re trying to buy time and exclusives?). I think, if Sony shows some God of War III, Uncharted 2, and MAG then I’ll be happy. If microsoft shows some more shitty alan wake (I don’t see how anyone could want to play this game, looks terrible just like HEAVY RAIN), then I’m going to be incredibly disappointed. Still Gears of War 2 and MGS 4 are my favorite games of this gen. Too bad no one ever admits both games are good, only one or the other.
@Charles Benjamin
I don’t think MS is selling with loss. look at configuration, its not too much to be expensive. I think, MS selling just at their point to manufacturing cost. And about the global economy, it will continue and take another 2-3 years to recover. So, by this time, 360 will be the best choice for playing games in general. I think, MS will do fine in this generation with their buggy hardware. becoz at the end, money matters. I bought X360 a years ago (no RROD yet, but i know it will eventually come) but still waiting for price cut for PS3 . (399 + tax(12.5%) = too much). And I think, E3 will a super duper SURPRISING ! I think, as a gamer, I have to have both PS3 and 360 to play all good games. Fanboy thing only cutoff 50% good games from me… it not abt who have 360 or PS3.. all it matters is GAMES !
lmao the only reason the wii is doing so well is because theres so many soccer moms to lazy to take there kids out druing the school holidays.
so they buy them a system that has “kid friendly” games but im shure if you show them mad world this will change there mind.
if you want to look like a escaped maniac from the mental hospital waving your arms arround like your first sighting of santa claus
with graphics that make the ps2 look good buy a wii.
if you want a HD game system buy a 360 or a ps3.
or even better build a pc gaming rig there not as expensive as people would have you believe
Dont confuse Sonys statement about the PS3s ten year to mean that they will not release another console for ten years. That statement means that the console will still be sold and support by sony. Look at the PS2 it is still being sold and support by Sony even though the PS3 is on the market.
I think the premise of your artice is all wrong…
Microsoft have at least two separate Halo projects in development and have done for some time.
Even without Bungie, if Microsoft show some Halo’s, the fans will be going nuts.
MS’s lead is only 7 or 8 million? They’ve already got one foot in the grave. Are you serious? According to VGC, Wii – 48.68 mil.(48.8%), Xbox360 – 29.59 mil.(29.7%) and the PS3 – 21.47 mil. (21.5%). So if MS rolls over and plays dead or get’s zapped with a freeze ray PS3 owns them. Sony may have blazed a path for Blu Ray this Gen, which may pay dividends in the future, but that decision cost them on the console front. And if they’re not ready to compete when MS launches it’s next console it will be get even worst. An 8 mil lead on 21.5 worldwide is what % Genius? Fanboism defies logic!
I agree mostly with charles benjamin. The ps3 is more expensive but you get what you pay for. The ps3 is built with qaulity, i have had a ps3 for almost 2 years and NEVER had a problem with, my 360 i have had for 3 years and has been sent in for repairs 3 times( RRoD, DISC SCRATCHING, UNABLE TO READ DISCS) . I played the xbox 360 because it DID have a better line up of games (gears, fable, halo) it DID have a better on line service which after having for 3 years now adds up to 150$ cost, but now the ps3’s line up blows the 360’s away with ORIGINAL games (Uncharted, kill zone 2, little big planet, metal gear solid 4) and especially this year with God of War 3, uncharted 2, MAG, Ratchet & Clank: A Crack in Time, Infamous. What does 360 have? ANOTHER Halo, who cares?? they are killing that franchise by making 2 halos a year. So with 299$ (elite) xbox 3 years of online 150$ countless bateries for controllers and no blu ray, i feel as if i wasted my money on the xbox 360. If you want a qaulity system that will last you well over 5 years with new games and support, have a free decent online service, capabilities for next gen movie watching (blu-ray) and a great line up of games get the PS3, if you want a cheap, and i mean cheap console with expensive but exceptional on line service, a mediocre line up of games and multple other hidden expenses ( wire less adapter, controller batteries, no blu-ray, plus head ache of problems) get the XBOX 360.
OMG…so many Sony Fanboys here.
Halo 3,not the best graphics but a much more better Multiplayer and Singleplayer than Killzone!
MS will blow ur fucking PS3 away! I have a Xbox 360 and PS3,but the Xbox360 is much more better than the PS3. Look at Killzone 2…bad story,bad Multiplayer but only good graphics…a Tech Demo. And Halo? The biggest franchise from the beginning of Xbox
Microsoft will blow ur Sony shit away,fact!
I have both consoles and i dont agree with Charles Benjamin and i actually believe that it is theother way around in terms of sales profits, i do believe that Sony make losses after selling consoles and Microsoft don’t. Why can’t we just accept that MS is dominant in the Western area of the world and Sony is dominant in areas like Japan. Microsoft may be losing money, i’m not so sure, but even if they were, they are mega frigging rich, ever heard of Bill Gates, he may not be the richest guy in the world anymore but this proves that Microsoft is rich and can afford to lose money selling their consoles because they have all that money and also charge for Xbox Live.
It’ll be interesting to Watch E3 and i Hope both camps pull out the big guns and surprise us all, MS will probably steal another PS3 exclusive!! lol.
Sorry but i would also like to say to Jeff that i have had my 360 for 2 years and it has not had Rrod’s (Touchwood) and yu can now get the jasper things that prevent it, and even if it did have Rrod’s 3 times, Microsoft repair it for free so whats the problem?
In terms of “selling at a loss,” technically Microsoft has been “making money” on consoles for over a year now. That doesn’t factor in the repairs, but in theory they are profitable. The PS3 has been sold at a loss assumed somewhere between $240 and $300 dollars per console. That doesn’t factor in improved manufacturing over the last year or the removal of functionality (backwards compatability/ports).
So, in terms of hemorrhaging money, Microsoft certainly had some major wounds, but those are bandaged and healing, whereas the PS3 will be sold at a major loss for, most likely, years to come.
the 10 year life cycle for the PS3 does not mean that the PS4 will be released 10 years after the PS3 was originally released they will prob do with the PS3 and PS4 what they are doing with the PS3 and PS2.
Sony may be losing money on PS3’s but if the indications are correct they are now making money on the 500 dollar version and losing it on the 400 dollar but Microsoft could be about even with all the repairs because of the RRoD and them buying the exclusives for the system but there is not much of a way to tell on profit of the system after you take all that out.
if you look at the first two years on the market the PS3 sold more than the 360 did. (http://vgchartz.com/hwlaunch.php?gr_i_ni) so where the the 360 has sold more in total because of the year head start the PS3 has sold more on a per year basis
MS RuleZZ you are obviously a fan boy that doesnt own a PS3. If you think PS3 is shit, you must be retarded for buying something you think so low of.
Tom your shitting me right?
so what they fix it for free.
if im paying 650+ for a piece of electronics i expect it to last longer than 3 months.
i bought an elite thinking it would be built better because it was much more expensive only 50 bucks cheaper than the ps3.
but it only lasted 3 months till the first RROD.
M$ told me max 4 weeks and ill have it back 7 weeks later i finaly got it back and man was i pissed.
so 2 weeks later i get the same thing rang them up gave them a ear full and got it
back 5 weeks later.
not that the ps3 is any better my ps3 stoped reading blu-ray disks after 3 weeks.
what hapend to the good old days where electronics would last 8-10 years before
breaking.
my grany still has her old black and white tv works like a charm never repaired.
her old fridge 12 years old.
her oven 6 years old.
my tv 2500 LCD sony D series couldent last 3 months overheated the first time.
than about 8 months later it switched off on me and refused to turn back on.
things are built on one thing these days money and it stinks everything is a cheap piece of shit
nick it just sounds like you have bad luck with your electronics i have had my PS3 for 2 years now and it still works great. everyone or at least 90 percent of the people i know that have a 360 have had it RedRing on them already and i dont know anyone that has had a problem with the PS3 yet
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