Technology of the week-Group 36 Microsoft Xbox VS Sony PlayStation
This report talks about the two major players in the video game industry and how these act as a platform for the consumers and the video game producers. The revenue sources for these players in the console industry have been discussed. Also how these console developers are vying for more of the customer attention by offering new launches has been mentioned.
Platform Networks: The Video Game Industry
In the video game industry, the intermediary or platform is represented by the console producer – in this case Microsoft with Xbox and Sony with Playstation. The two sides of the market, which connect through this platform, are the consumers and the video game developers. In the video game industry, consumers are seen as the ‘subsidy’, while game developers are viewed as the ‘money side’ . Value grows as the platform matches the demand from both sides, so video game developers prefer platforms that have a critical mass of players while players favor platforms with a greater variety of games.
PlayStation
PlayStation is a series of video game consoles created and developed by Sony Computer Entertainment. This brand was first introduced on December 3, 1994 in Japan with the launch of the original PlayStation console system. It now consists of four home consoles, a media center, an online service, a line of controllers, as well as multiple magazines.
Xbox
Xbox One vision is “taking over the living room” but the business model has not really changed from the Microsoft`s first console in 2001 – gamers pay on average €60 for a game before they are able to play the game they wanted. Developers took major cut from games they sell and platform providers (Microsoft) need to find more ways to make profit. The business model isn´t any more that you only try to sell as many games and consoles as you can with high profit margins.
PlayStation VS Xbox
Revenue
The main sources of two consoles’ revenue are the same, video game developers and console players. For Xbox, they put more focus on increasing its install base. On the other hand, PlayStation TV has launched to compete with Apple TV or Amazon’s Fire TV while still focus video gaming.
Cost
In Xbox, mixed bundling is always the common strategy, which ensures all the important feature can be seen from this bundling. However, the major cost of PlayStation has till be the manufacture cost of consoles. Moreover, after launch the PlayStation TV, the maintenance of cloud network service can be increasing important as well.
Distribution channel
Due to its wide electronic business network, PlayStation is available in major online and offline retail store in more than countries while Xbox mainly use third party platform like Amazon and GameStop to sell its devices.
Partner
Xbox has partnership with Netflix to enable player to watch TV or movie on their devices as well. For PlayStation, they put effort on many sports event and tried to partner with popular plays to attract the attention of buyers.
will Apple be obsolete in the near future?
Apple, as a leading technoloy company, has pentration in most people’s daily life more and more deeply. And especially of its morden design and high technology, it brings large number of its loyal customers for it. Moreover, it can be easily found out that it is always crowded outside the Apple once it launched new products. Everyone want to take a look at and try the new products from Apple. It seems that people enjoy the addiction that Apple offers and Apple has already becomes an essential part of their lifes.
However, the problem is, will Apple be obsolete in the near future?
One analyst told CNBC that because of the increasing competition and “make-believe” valuation in the technology, apple would be obsolete in three years. Also said by Noronha from the TV interview that it is a very competitive landscape, and as increasing number of technology companies coming into the market, he shared the opinion that Apple might become obsolete in two-to-three years.
On the other side, Apple still grows steadily and according to its second-quarter net profit, Apple has increased up to 12% comapred in the same period from last year. what is more, after Apple launched its new Iphone 6, it drew more than 4 million pre-order, which is more than double size of pre-order that it launched its Iphone 5 two year ago.
Everytime after Apple launched new products, there comes some “scandal” for the new product, as well as this time. right now everyone discuss the “bend” problem occuring from Iphone 6+. But for Apple, it seems that it enjoy people’s discussion and the attentin from the customers.
In my opinion, Apple is doing a great job in recent years since it has changed its strategy on launching two different products insteads of one single products. This is really nice, because it expend its market share to get more potential customers. On the other hand, if Apple continues its strategy, will it be obselete in the near future or still grow? Tell me about your opinions.
http://www.moneycontrol.com/news/technology/apple-could-be-obsolete3-years-analyst_1137005.html
Sony playstation TV VS Microsoft Xbox One
With all the years, the war between Sony and Microsoft never stop about the video game. And recently, both of two companies have lunched each new products in order to take over the market share in the gaming industry.
One product which is lunched by Sony is Playstation TV, “PlayStation TV offers access to some of PlayStation’s biggest and best titles, including great games on PS Vita, classics on PS One, blockbuster experiences on PS3 through PlayStation Now, and even PS4 games through Remote Play” told by Mary Taing, Sony Computer Entertainment America spokesperson. Moreover, PlayStation TV creates the in-house gaming ecosystem that it allows for streaming of games from a PlayStation device to a second screen in another room. On the other hand, not only can gamer download the game to the PS TV, but also can insert directly using a PS Vita card; as well as many older PS One, PSP and PS3 games. Besides, remote play is added as a new feature to Playstation TV as well.
the other product is Xbox One which is developed by Microsoft. One biggest advantage is that it is not necessary to connect to enjoy offline features of games except the first time that you need to set up the Xbox One in order to get the latest system before you play the games. The fact is that you can take the Xbox One anywhere and play any disc-based Xbox One game on it. Still, it remains the Xbox 36o’s feature that there are no limitations to using and sharing the game. And it is possible to purchase from Xbox Live and get instant access to playing. In addition, Xbox One made a big progress on voice command that if you want to turn off the Xbox One, you can simple say “Xbox, Turn Off” instead of going to shut it down.
To be honest, both of this two products show their powerful function to the gamers and try to attract consumers as many as they want. So based on the feature above, which one do you think would win the battle this time?
Source: http://www.technewsworld.com/story/81078.html
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