Sony Microsoft above parlor game market: Sony

A white-hot competition is brewing in the field of video games. This week, at the E3 show in Los Angeles, Microsoft and Sony each announced plans to launch their own new generation of game consoles--xbox one and PS4 this year, with a fierce scramble for the living room game market. Sony, however, appeared to have seized on the head-on confrontation with Microsoft. Microsoft introduced the game software this week, and at a press conference, Microsoft introduced the upcoming 13 games and announced that the Xbox One will be on sale on November 21, at $499. Last month, Microsoft officially released its Xbox One, the third-generation game host and its first full new product, launched in eight years. Microsoft's Monday press conference in Los Angeles appeared to be the most but Sony then launched a violent counter-offensive, announcing what it might be a "must-play" game-owning product, and, more importantly, announcing that PS4 would also be launched this holiday season with a price of 100 dollars lower than the Xbox One. That could be enough to win Sony's first round of competition. "For average players, 100 dollars is really not a small number," said Lewis Ward, a marketing research firm IDC Gaming research manager Louise Wade. Past experience has shown that ordinary gamers do not want to spend more money on game consoles, even if they pay a dollar more. "However, from now until November, there is still a possibility that some changes will occur." This time, Microsoft and Sony in the new generation of game host cycle appears particularly special is that PS4 is the fourth generation of Sony game host, Xbox one is the third generation of Microsoft game host, and the previous two companies have never in the same holiday quarter launched a new generation of game host, to rob the users. Sony launched the PS2 in 2000, a year after Microsoft's first-generation Xbox launched, and in the competition the company won. After that, Microsoft launched its Xbox 360 in 2005, a year earlier than Sony's more expensive PS3. This time, Microsoft and Sony in the same year launched their own new generation of game consoles, but, Microsoft's game host price is higher, this may become Microsoft in this competition with Sony the most unfavorable factor. "100 dollars is a small amount, and Microsoft must convince consumers why their host prices are more expensive," said Michael Pachter, Wedbush Nomura, head of research at the private equity group. The value of the product is not immediately apparent, and players do not seem to think it is worth paying 100 more dollars to have Skype calls. "However, even in accordance with the sales price of the game hosts released by two companies, it is almost certain that two companies are actually losing money on every video game host sold." Since both Microsoft and Sony will adopt the "Razor and Blade" business model (ie, by giving out razors, the disposable blades are drivenHuge demand), in this mode, game host sales a slight loss, profit from the sale of related game software. This could be the reason why two companies have been trying to show a large number of unique first-party games (issued separately by Microsoft or Sony) and exclusive Third-party games from the core issuer. "Unique games are absolutely important," says Billy Pidgeon, a Billy Piggian analyst at BP's video game industry. With unique games, including a third party unique game, can pull the gap. "Both Microsoft and Sony are looking for ways to improve their game consoles, but the real key is to have a customer base and see software sales." In turn, software also facilitates sales of game consoles, both of which complement each other. Pachel said: "Two companies have demonstrated excellent game software, game host sales will ultimately depend on the game software products." For two companies, building a huge community to promote their brand is critical, so upfront sales are critical. Unless Microsoft can sell the value of its more priced Xbox One, they may lose points in the competition after each party announces its own game-hosting price. "At the E3 show this week, Sony has at least the upper hand, announcing that its new generation of mainframe PS4 is lower than the Xbox One, and that the President and chief executive officer of Sony Computer Entertainment (US), Jack Treton (Jack Tretton), also announced Sony will continue to support the sale of second-hand games. This contrasts with the way Microsoft announces that Microsoft may require players to stay connected and may limit the way games are traded. These may also give Sony an advantage in the early days of game-hosting sales. "Second-hand gaming and networking requirements may prompt Sony to perform strongly in the early stages of product sales," said Ward, IDC. But this is only the first of ten years of competition, even if Sony in the fourth quarter of this year's game host sales, and the introduction of popular second-hand game trading methods, but the future competition there are still many variables. ”