This is something I've been mulling for a while: how do Sony and Microsoft avoid having their products become interchangable from the consumer vantage point?

Last generation, even though the PS2 and Xbox were marketed and directed towards the same demographics in very similar ways, the PS2 managed to  differentiate itself by the sheer number of exclusive title from third parties. This generation, that dominance isn't there on either side, and we haven't seen a major third party game announced as 360 or PS3 exclusive in quite a while. Even on internet forums, where knowledge is clearly going to be much higher than for your average consumer, people talk about "PS3/360" or "PS360" games, and mush the two platforms together. 

From a consumer standpoint, this is absolutely fine. Great, even. You have all the games on your system no matter which of the two you choose, save only a few: if you like MGS and Final Fantasy more, pick up a PS3; if you like Bioshock and Mass Effect more, you should pick up a 360. But I can almost garauntee that Sony and Microsoft are frantic to avoid this sort of brand confusion, where the Playstation and Xbox brand become interchangable, virtually identical products to the average consumer. Both are aimed squarely at young males; both tout their high tech graphics and features; both have almost all of the same games.

My question is -- what can Sony or Microsoft do to avoid this? How can they manage to meaningfully distinguish their products? Please try to see this from the viewpoint of the average consumer. Obviously it's a big deal to some people that the PS3 does not have Halo, just as some would proclaim that GT5 is so important that oh my gosh how could anyone see the 360 as a replacement for a PS3. Again, by and large, these two consoles have the same games, same target demographic, and same image. What can these companies do to stop it? 

I think the real question is.. how do Xbox distinguish itself from PC games.

Most (if not all) PS3 games won't see another console/PC, that's for the likes of R&C, Uncharted, Warhawk, FFXIII, MGS4, GT5. But you can't say that for most of 360 games.

Wow, this is a real tough nut to crack.

I think Microsoft and Sony try and mass market their features, like on the old Xbox 360 ads, where it showcased all their "Wireless capabilities" and at the end peppered it off with "Only on Xbox 360", maybe their tags on their games "Only on PS3" (Or Xbox 360)

I don't know if that's a valid answer, sorry. Lol

80% of games are multiplatform titles.

I didn't get a PS3 at launch, because I couldn't find one. Instead, I got a 360. To my suprise, it was awesome. Even more to my suprise, the PS3 and the 360 WERE interchangable. There was nothing about the PS3 aside from Blu-Ray capability that made me "need" it. I've had the money to buy a PS3 for a while, but like you've shown, why should I?

Anyway, 2008 is when I expect the PS3 to establish its own identity. I'm buying the MGS4 bundle, day one. Still, I can't shake the feeling that I'm buying two of the same console.

the original xbox was know for its graphics capabilities over the other systems and the ps2 was known for its sheer amount of games.. this gen is a lil different since both are known for graphics...

Good read. And I share your views which is why my conclusion is that PS3 and 360 lifetimes will end up equal, both will have good exclusive games in the end (although PS3 still has some way to prove itself here but Im quite sure theyll come through). At the moment, the PS3 is sitting on the Blu-Ray camp to differentiate itself and the 360 is the better online and downloading service to differentiate itself. I think the next way to differentiate is the casual games strategy for the next 3-4 years. Thats why I hope the Xmote is true.

I think the short answer is they can't.

If you think about it, apart from exclusive IP consoles are essentially interchangable. They are simply HW that plays a game.

Sure, you can try and use specifications - but those can always be matched.

You can be innovative (like Wii) but that can be copied next time out or added as an extra (I'm actually surprised both Sony and MS have been so slow to get out a bunch of simple motion control games, particularly Sony as they already have basic motion controls already).

And unless money (paid exclusives or studies) or other reasons are involved (company choice for simplifiation and focus such as Insomniac) there is little advantage right now to being exclusive as a developer.

I think AC, COD4 and DMC4 were the tipping point when I realised that PS3/360 could co-exist although each was limiting the others growth, as both easily sold enough of each system to be a success for both.

Now the standard way to be different is either different services or unique products.

But of course unless we're talking unique IP those can be copied. PSN for Live, for example, or BR player for 360, etc. That can take time of course, but it can be done.

Right now the only real difference between the two is a relatively small set of exclusive games and BR and brand recognition.

"how do Sony and Microsoft avoid having their products become interchangable from the consumer vantage point?"

I think the question is, why should they avoid this? At the moment the combined 360/PS3 userbase makes most third-party PS360 multiplatforms a better choice for developers than the Wii/Ps2 multiplats. Alone they could struggle but together they are a pretty formidable opponent to the casual gaming juggernaut.

Personally I think this is a great thing. As a PS3 owner I have access to most great titles that are on the 360 and vice versa. I like BluRay and the far more sophisticated looks of the PS3. Other people want the better online capabilities of the 360. Adn both can play almost all of the best third-party games of this generation.

If the two platforms PS3 and 360 fail to differentiate themselves from each other the following might happen.

How about the next generation console is a merged console of MS and Sony that offers games and plays both PS3 and XBox 360 games as Backwards Compatible. Offers lots of online game downloads and a brilliant online service.
This could happen if MS sells off its Gaming division to Sony for a huge profit and gives Sony exclusive rights to Halo and Gears of War franchises.