The Console Wars
Sooo….the next-gen console war between Sony and Microsoft to take over your living room has been raging for a couple of months. Who is winning? Well there are numerous ways you could judge the two consoles in order to determine which one is on top. If we look at the number of units sold, we can see a clear frontrunner in the race (by the way, sorry Wii U but considering both consoles have outsold you in less than half the time, were gonna put you out of the race for now).
Since the release of both gaming systems in November of last year, The Xbox One has sold about 3.4 million consoles worldwide to the 5.1 million units for the PS4. In the month of January, the PS4 sold almost double the amount of units that the Xbox one sold, with a count of 280,000 units to 145,000. Major retailers like Target and Wal-Mart have actually been offering price reducing incentives such as a free game or a gift card with the purchase of an Xbox One. Meanwhile PS4s have been sold out nationwide for what seems like too long, but don’t worry Playstation fans, Sony assured us that they’ll fix the supply problem soon.
More Bang For Your Buck
Although the price of a PS4 was initially more expensive than an Xbox One, the current price of a PS4 is about $100 less than an Xbox One. Paying $100 more for an Xbox One that runs at a lower resolution than the PS4 doesn’t seem to sound too attractive for buyers out there. And while the Xbox One is marketed as a complete home entertainment system that comes automatically with the Kinect add on and voice control, there have been some complaints. The voice control can be tedious and unresponsive at times, while the Kinect is seen by many gamer’s as unnecessary or undesirable. Microsoft has also requires that Xbox users pay for an Xbox Live membership to use other applications on the Xbox like Netflix. Sony only requires a PlayStation membership if you want to play online.
Xbox One VS PS4: What happens next?
In terms of market share, the PS4 has the largest share by far, with 52.3% of the market compared to 29.6% and 18% for the Xbox One and Wii U respectively. But what happens in the long term future for the two consoles still remains to be seen. Since the PS4 is cheaper than the Xbox One, Sony could be at risk of seeing their profit margins be compressed. The impending release of certain Xbox One exclusive games such as Titanfall are expected to give Microsoft a little pit of a boost in sales of the Xbox. But less than two weeks ago, Sony announced that more than 100 PS4 games are expected to be released in 2014 (seriously?!).
But the market for video game consoles has been somewhat declining over the past couple years. Price wars have been the norm for game consoles, which means that the desire for the largest market share could lead to lower profits for everyone involved (but it does mean cheaper entertainment for us consumers). Either way it will be interesting to see what Microsoft and Sony do next to one up the other, but one things for sure, it’s gonna raise eyebrows.