Both companies have focused on technology and being quick to market to
try to exploit gamers' interest in having the latest and greatest
console. Sony's PlayStation 2 beat Microsoft's Xbox to market by 20
months, resulting in a 69% market share. Vowing to not be beaten on
timing again, Microsoft began work right away on its next version.
And, it looks like Microsoft may very well beat Sony's PlayStation 3
to market by at least nine months in North America, arriving in time
for Christmas this year.
By arriving earlier with a more powerful machine, Microsoft can make
popular new games available before Sony has a competing option. Early
hit games that were only available on PlayStation 2 launched before
Microsoft had its console ready, preventing Microsoft from gaining
very much traction in the marketplace.
Because having a wide variety of popular games is essential to
success, Microsoft has devoted considerable effort to making it less
expensive and easier for developers to create games for its platform.
Microsoft has had considerable success in attracting additional
developers to its upcoming Xbox release compared with the original.
The PlayStation 2 is less powerful than Microsoft's original Xbox, so
Sony has devoted considerable effort to developing a new, much more
powerful chip to power the PlayStation 3. However, the company has
been close mouthed about the Cell chip, which has made it difficult
for game developers to begin development for PlayStation 3.
To try to extract additional life out of its PlayStation 2, Sony has
redesigned it to look sleeker and to be less expensive to manufacture.
Sony has also made it easier to network to try to boost the
popularity of its online gaming service. Microsoft has initiated an
aggressive price war by slashing the price of its consoles, with Sony
matching Microsoft's cuts after Microsoft began to gain market share.
To further differentiate itself from Sony, Microsoft has pushed
developers to exclusively support its Xbox Live online gaming service.
By reaching an agreement with Electronic Arts, the largest video game
publisher, Microsoft made its online gaming service for the Xbox more
attractive than Sony's for the PlayStation 2.
Unlike Microsoft, Sony has also launched a PlayStation Portable
console, which also shows movies and plays music. Sony has also
elected to fight a patent infringement suit from Immersion, whereas
Microsoft settled in mid-2003. Concerns that the next-generation
PlayStation could be delayed by the suit could cause developers to
devote more resources to Microsoft's next-generation Xbox.
Sincerely,
Wonko
"Microsoft Plays Video Leapfrog" By Jay Greene and Cliff Edwards,
BusinessWeek (May 10, 2004)
http://www.businessweek.com/@@Uj8eaocQ*ihhDg0A/magazine/content/04_19/b3882048.htm
"This Price War Has EA Cheering" by Cliff Edwards, BusinessWeek (April
12, 2004) http://www.businessweek.com/technology/content/apr2004/tc20040412_8356_tc055.htm
"PlayStation 2 Price Cut to $149" by Wired News Staff, Wired (May 11,
2004) http://www.wired.com/news/games/0,2101,63426,00.html
"New PS2 Design this November" by Colin Temple, Game-Machines.com
(September 23, 2004) http://www.game-machines.com/news/092304/ps2.php
"The PlayStation Portable Has Miles To Go" by Stephen H. Wildstrom,
BusinessWeek http://www.businessweek.com/@@BU9ED4cQAClhDg0A/magazine/content/05_14/b3927029_mz006.htm
"Mortal Combat for PlayStation" by Cliff Edwards, BusinessWeek (March
29, 2005) http://www.businessweek.com/technology/content/mar2005/tc20050329_9879_tc119.htm |
