Forums - Gaming Discussion - Pachter: Xbox ONE should have the advantage over the long term.

He is talking about the US of course.

I saw the other thread ( http://gamrconnect.vgchartz.com/thread.php?id=184551&page=1# ) where a crappy website had stolen one part of a bloomberg article to sensationalise the $1bn revenue thing.  So here is the full article for clarification for you.

The $1bn thing is REVENUE over the lifetime of the console by the way, for perspective MS makes $1bn in PROFITS evert 2 to 3 weeks.

 

http://www.bloomberg.com/news/2014-06-06/xbox-looks-for-do-over-with-gamers-as-sales-trail-sony-s.html

 

Xbox Looks for Do-Over With Gamers as Sales Trail Sony’s


By Dina Bass and Cliff Edwards   Jun 7, 2014 5:00 AM GMT+0100

For Microsoft Corp. (MSFT), this year’s Electronic Entertainment Expo, the video-game industry’s annual conference, looks like a do-over.

Missteps over the past 12 months, from pricing the new Xbox One $100 above Sony Corp. (SNE)’s PlayStation 4 to a rollout that gamers said slighted them, let the $399 PS4 grab the early lead. With Microsoft and its game unit under new leaders, the Redmond, Washington-based company is pivoting back to attract loyal players with fresh titles and a lower-priced model that goes on sale June 9, the day the company makes its E3 presentation in Los Angeles.

“There’s absolutely a renewed focus on the gamer and our fans for Xbox that have prioritized gaming,” Yusuf Mehdi, vice president for Xbox marketing and strategy, said in an interview. “We are very much coming to this E3 with a great story to share and tell.”

In addition to selling at least 2 million fewer players than Sony, Microsoft has lost $1 billion in future sales, based on how much gamers spend over the life of a console, according to Michael Pachter, a Wedbush Securities analyst who predicts the company will bounce back. Further market-share losses would give Sony greater influence with the companies that create the most-popular games and applications.

That isn’t happening yet.

For this holiday season, there are no huge exclusives for either Microsoft or Tokyo-based Sony. Both companies will be relying heavily on titles available for both consoles, with each having secured some unique content.

Sunset Overdrive

For Xbox One, that game is Activision Blizzard Inc. (ATVI)’s Call of Duty: Advanced Warfare, which goes on sale Nov. 4. Microsoft gets first access to downloadable content and map packs. Sony, meanwhile, will get exclusive playable content for the game Destiny, the first new franchise from Bungie Inc., the studio that made the top-selling Halo games for Xbox.

Microsoft, which plans a media briefing at 9 a.m. local time, also will have Sunset Overdrive only on Xbox for the holidays. A shooting game with wacky weapons like an exploding teddy bear, it’s from the studio that used to make Ratchet & Clank, only for PlayStation.

Sony’s E3 press conference that afternoon will focus on some of the company’s core games, including the Gran Turismo racing title, and new products such as the action-adventure knights tale The Order: 1886. 

To differentiate itself from Microsoft, Sony also will probably offer new demonstrations of Project Morpheus, a virtual reality headset unveiled in March to compete with Oculus VR’s Rift, and its PlayStation Now game-download service.

All-in-One

Microsoft, which outsold Sony in the U.S. with the previous generation of consoles, has tried to market Xbox One as a premium, all-in-one entertainment product, a strategy that hasn’t delivered industry leading sales so far.

“The bet that the broader entertainment consumer would buy the console this early in the cycle hasn’t panned out,” said Brian Blau, an analyst at Gartner Inc. The serious gamer is “the person who is going to buy the console today.”

The focus on TV, music and movies put off some gamers who fretted they were no longer the priority. The company tried to impose curbs on trading games and set requirements that the device be connected to the Internet once a day, two demands that were rescinded before the machine’s debut.

Microsoft also never succeeded in convincing gamers that the Kinect motion sensor justified the $499 price relative to Sony’s (6758) PlayStation 4. Even a complete exclusive, a rarity these days, on the hottest game of the spring, Titanfall, couldn’t vault Xbox One above PlayStation 4 in sales.

Not Kinecting

Finally, with shoppers worldwide snapping up more than 7 million PlayStation 4 consoles and Microsoft shipping 5 million Xbox Ones into stores, including some still unsold, the company announced last month it would sell a Kinect-less version of Xbox One matching Sony’s $399 price.

With the price cut, Xbox One finally can go head to head with PlayStation 4, according to Pachter, who projects the Kinect-free version will account for 90 percent of Xbox sales.

With neither console likely to offer a blockbuster exclusive this Christmas -- Microsoft’s next Halo doesn’t come out until 2015 -- Xbox executives will have to find a way to differentiate their product from Sony’s.

One month after taking over in February as Microsoft’s new chief executive officer, Satya Nadella named long-time games executive Phil Spencer to head Xbox, a signal that core players are back in the spotlight for the division.

Long Road

With a renewed focus on gamers, Mehdi sees an opportunity to close the gap with Sony, especially with the new console generation not even a year old.

The Xbox One, while trailing Sony’s player, is still outselling its predecessor, the Xbox 360, at this stage, and that’s despite the fact it’s available in fewer countries.

“What we’ve seen in the past is that early in the generation most of the people that buy consoles early end up buying both,” Mehdi said. Sales for the two companies so far represent “probably 5 percent of the total number of units that wind up getting sold.”

Now that the prices are the same, Xbox’s advantage among gamers who want to engage in multiplayer contests should help, according to Pachter.

“The software lineup is pretty consistent across both platforms,” said Pachter. “Once price is neutralized, people will choose based on what their friends have, because they want to play online multiplayer and the multiplayer community is bigger on Xbox. So Microsoft should have an advantage over the long term.”

To contact the reporters on this story: Dina Bass in Seattle at dbass2@bloomberg.net; Cliff Edwards in San Francisco at cedwards28@bloomberg.net

To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net; Pui-Wing Tam at ptam13@bloomberg.net Rob Golum



I'm not really here!

televandalist Animated Gif on Giphy

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I don't think the advtange will be too big or significant to be #1 in other countries other than usa.(whenever that happens)

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this was really long and all i read was the sunset overdrive part :/ - however, I nothing useful to contribute.

Systems Owned: PS1, PS2, PS3,PS4, Wii, WiiU, xbox, xbox 360, xbox one

Got love how the reasons X1 will do well change so often, given how their previous reasons X1 will catch and surpass have failed and been dropped. I take this as a puff piece by a known jester in the gaming world.

Is the X1 still actually ahead of the 360 ?

His multiplier pro Xbox argument is a hilarious fail given PS4 Watchdogs just outsold the X1 version by 420k in USA alone.



The multiplayer being bigger on Xbox in the US is true, but I don't necessarily think that this can't change, people used to say that the Xbox already had the US locked and that the real battlefield would be Europe because of the multiplayer community... and we can see how that turned out in the first months.

Right now more people own a PS4 in the US, if we go by the premise that people buy consoles their friends own then I could definitely imagine that turning into a snowball effect and helping the PS4 stay on top even there.

Sony needs to get their foot on the gas and start pumping out some impressive games starting 2015 (since 2014 seems to be a lost cause in that regard) though.

Prediction: The PS4 will outsell the Wii U and 3DS combined

Apparently I won my bet with prinz_valium

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Well yes it has AN advantage over the long term, but not a huge one and probably not one that will have a large effect. Multiplayer isn't the be all and end all, and it isn't the sole determinant of which console will win the long term race in the USA. The highest selling CoD on 360 in North America is Blops at 9.3 million, less than 1/4 the 360's USA install base.

If you consider CoD: Ghosts sales on current gen consoles they certainly favour Xb one. So proportionally yes Xb one will probably perform better in FPS multiplayer centric titles. But there is still a comparably sized FPS MP community on PS4. The difference is probably not enough to be a game changer.

Somewhat misleading title by the way. There is a difference between what Pachter says "So Microsoft should have an advantage over the long term. and what you put in the title "Xbox ONE should have the advantage over the long term." "the" and "an" have very different meanings in this context.



“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell

"When the power of love overcomes the love of power, the world will know peace."

Jimi Hendrix

 

I'm not convinced this will occur, even in the US. So many variables are involved with the "long term" and a lot can change between now and then. We will see. Even if Xbox does have the advantage, I believe it would be so inconsequential that the "lead" wouldn't even matter.

Well the lion's share of my friends are either staying with Playstation or converting to Playstation - that's a significant number. The diehard Xbox enthusiasts and anti PS people in my circles will not change though, so that's around 2 guys.

Pachter is right to an extent about some people getting all machines. Right now the PS4 and Wii U are what drive my interests, but I won't rule out a One if the software is compelling. MS need to give me at least 5 good reasons to get one and as long as my friends go that route I'd consider. When you're getting older and your friends are moving around the world "console wars" matter less, and the platform(s) you can play them on matters much more.



 

Playstation = The Beast from the East

Sony + Nintendo = WIN! PS3 + PSV + PS4 + Wii U + 3DS


That's a pretty poorly written article.

VGC Gamerscore league                                                          Bet with Miguel_Zorro Bet with Jizz_Beard_thePirate

 

Xbox had better online before in last generation but Sony charging and improving the online this time along with their online technology Gaikai they are going to provide service like Xbox live or more in future. So, there is nothing Xbox can have from multi player related advantage.

GAMING is not about spending lots of hours to pass/waste our time,

its a Feeling/Experience/Fun about a VIRTUAL WORLD in short time.

Feel Emotions, Experience Adventure/Action, Challenge Game,Solve puzzles and Have fun.

PlayStation is about all-round New Experiences with new IP's and differnet gameplays.

Xbox is always about Online and Shooting.

Nintendo is always about Fun games, Role play and old IP's.

Steam is heaven for Indies, but Hell for Console makers, Retailers, Publishers, future of AAA/AA game developers and Gamers.

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MS has spent a lot of money on devices that was "sure" to go nowhere: Zune, Windows Phone, Surface etc! Why not throw some money on something that can succed? If they want to win this they have to sell with a loss.
Give away the hardware and profit on the software, subscriptions and advertisment.