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Forums - Gaming Discussion - Flashback: Console War in 2005

While searching the web I discovered a very old article on the state of the industry back in 2005. Here is the important details I grabbed. 

Moore's War
FOR MICROSOFT, THE NEW XBOX IS THE BIGGEST LAUNCH SINCE WINDOWS 95. FOR THE MAN LEADING THE CHARGE, IT'S ALSO A CHANCE FOR REVENGE AGAINST SONY'S PLAYSTATION MASTERMIND.
By Geoff Keighley

- Peter Moore is the top marketing executive for Microsoft's next-generation console, the Xbox 360; Kutaragi, the legendary Sony PlayStation CEO, is his archnemesis. The two shook hands, and Kutaragi invited Moore to the Sony booth "to check out the PlayStation 3 videos." Videos? Yes. The PlayStation 3 is not due out until April, and all Sony had to demo in Tokyo were noninteractive computer graphics. The Xbox 360, which launches in the United States on Nov. 22, did not have the same problem. "Thank you, Ken," Moore said with a toothy grin. "But come by our booth if you want to play actual videogames."

-Xbox 360 was to go beyond geeks and reach gamers that even the Playstation couldn't reach


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The stakes are enormous. If Moore's attack makes significant inroads into PlayStation's market share, he will have almost single-handedly realized Gates's vision of Microsoft as a home entertainment powerhouse. But if Kutaragi has the last laugh, then Microsoft--already scrambling for a looming war with Google over the desktop--may have an even greater rival on its hands. It's no secret that Kutaragi expects the PlayStation to one day replace the PC. "For Peter," says Xbox executive J. Allard, "this time it's personal."


-Peter Moore ,who worked for Sega during the Dreamcast era, wanted to take down Playstation as he had wanted revenge over what Playstation did to 
Sega

-Ken Kutaragi who is considered the father of the Playstation said in 1994 that the biggest threat to Playstation was not Nintendo but Microsoft. Ken Kutaragi also said he will kill Microsoft. 

-Moore did extensive consumer research to prove that this wasn't the case with the original Xbox. In one case study, Xbox and PS2 loyalists were asked to argue in front of a judge why their systems were better. The Xbox gamers based their arguments on technology: "I have 7.1 surround sound. I'm immersed in this sound, this color, this beautiful world," one said. PS2 owners, meanwhile, were more laid-back: "It plays games, it's simple, it works," said one, slouched in his seat. Moore believes that the ardent fervor for Xbox actually put up barriers to growth. "We had the hard-core but nothing else," he says.


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Moore is undaunted. "We are not going to be Dreamcasted," he insisted in a rousing speech to Xbox employees in September 2004. "I will not let that happen again." Standing in front of a giant picture of Winston Churchill, quoting from the war leader's speeches, Moore recalled the pain of losing once to Kutaragi. 

-If he does win the battle against Kutaragi, Moore knows that his war will be about more than just videogames. The team that Microsoft has assembled for the 360--a tightly interwoven marketing and product design group--could help the company solve problems in its other divisions, most notably digital music. Ballmer doesn't rule out the idea of the Xbox team creating a design for a digital-music player and integrating it with better player software. There's already talk that Moore could head up Microsoft's broader entertainment strategy. First Ken Kutaragi, then Steve Jobs? "[Our team] has a lot of passion to extend beyond games," Allard hints. "Listen, we're not going to keep our design guys waiting around for five years with nothing to do." Xpod, anyone?

I highly reccommend to read the rest of the article if you found the points I listed interesting. 
Here is the Source



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(killeryoshis note - Who put that there ?)
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I thought this old article was too interesting not to share. It shows the state of the industry in 2005. It is a nice time capsule to look at.

Also it shows that Microsoft tried much harder than they do now to sell a console. Overall it needs more Nintendo talk however this was based on Peter Moore's perspective on things so I understand.



Tag:I'm not bias towards Nintendo. You just think that way (Admin note - it's "biased".  Not "bias")
(killeryoshis note - Who put that there ?)
Switch is 9th generation. Everyone else is playing on last gen systems! UPDATE: This is no longer true

Biggest pikmin fan on VGchartz I won from a voting poll
I am not a nerd. I am enthusiast.  EN-THU-SI-AST!
Do Not Click here or else I will call on the eye of shinning justice on you. 

killeryoshis said:

It's no secret that Kutaragi expects the PlayStation to one day replace the PC.

Sony really were remarkably arrogant coming off the PS2.



Kutaragi thought that Microsoft was a bigger threat than Nintendo and that video game consoles could replace home computers? Wow. What a time that was.



curl-6 said:
killeryoshis said:

It's no secret that Kutaragi expects the PlayStation to one day replace the PC.

Sony really were remarkably arrogant coming off the PS2.

well you could see that as arrogance or ambition



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StarDoor said:
Kutaragi thought that Microsoft was a bigger threat than Nintendo and that video game consoles could replace home computers? Wow. What a time that was.

Kutaragi was high, but Microsoft thought this too. That's why they made the XBox, because they (foolishly) thought Playstation was some kind of threat to move into the computer business somehow. 

What Microsoft badly misjudged is their true competetion would come from Apple and Google, whom they were paying no attention to. Today Android is the no.1 OS in the world and MS compeletely missed the boat on smartphones (which Ballmer admits now). Playstation was always a paper tiger, Apple and Google were the real threats. The 100 million that Sony sells in game consoles over 5-6 years is laughably small potatoes compared to iPhone or Samsung Galaxy shipments. 



That Microsoft/Google thing was really spot on. Xbox was really hustling back then. The hardcore statement goes a long way in explaining what happened near the end of the 360's life cycle with Kinect and casuals.



Robert_Downey_Jr. said:
curl-6 said:

Sony really were remarkably arrogant coming off the PS2.

well you could see that as arrogance or ambition

I see it as arrogance because of context; around the same time they were making statements like how people will buy PS3 even if it doesn't have any games, people should get a second job to afford one, Xbox 360 is an Xbox 1.5,  PS3 has 4D graphics, next gen starts when we say it does, etc.



Soundwave said:
StarDoor said:
Kutaragi thought that Microsoft was a bigger threat than Nintendo and that video game consoles could replace home computers? Wow. What a time that was.

Kutaragi was high, but Microsoft thought this too. That's why they made the XBox, because they (foolishly) thought Playstation was some kind of threat to move into the computer business somehow. 

What Microsoft badly misjudged is their true competetion would come from Apple and Google, whom they were paying no attention to. Today Android is the no.1 OS in the world and MS compeletely missed the boat on smartphones (which Ballmer admits now). Playstation was always a paper tiger, Apple and Google were the real threats. The 100 million that Sony sells in game consoles over 5-6 years is laughably small potatoes compared to iPhone or Samsung Galaxy shipments. 

To add to that, the article mentions how Microsoft was looking for the Google threat, but in the desktop space and not the mobile space. They were looking at the raptor in front of them and missed the one to the side. 



Given how the PS3 performed in comparison, I'd say it was arrogance.