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 When Sony and Microsoft last came out with new video game
consoles — seven and eight years ago, respectively, the companies
touted the machines' high-definition graphics, powerful processors
and ability to play DVDs, and in Sony's case, Blu-ray discs.
But a lot has changed since then. People are playing games on a
broader array of devices than ever before, and they have more
options to stream movies, TV shows and music. Connecting with
friends online is the norm, not an obscure activity for young
people.
That's the world the Sony's PlayStation 4 and Microsoft's Xbox One
enter. The PlayStation 4 goes on sale Friday and the Xbox One will
be released next week. As Sony and Microsoft once again spar this
holiday season over who has the brawnier machine and more enticing
online features, hardcore gamers are all but certain to fall for the
shiny, powerful new consoles. But what's less clear is how the
gadgets will compete for the attention of people who now look to
their tablets, smartphones and other devices for entertainment.
"It's turning out that these consoles, in fighting each other for
the love of the hardcore gamer, run the risk of failing to capture
people in their homes," says James McQuivey, an analyst with
Forrester Research.
Both Microsoft and Sony position their gaming systems as
entertainment devices meant to take over the living room. The Xbox
360 started streaming movies from Netflix in 2008 and the
PlayStation 3, which already served as a Blu-ray player, soon
followed, along with a bevy of other entertainment options. Experts
wondered whether gaming systems would soon replace cable set-top
boxes.
Not so fast, was the reply from a host of other gadget makers. Along
came Google's Chromecast, the Roku player, Apple TV and, of course,
a slew of tablets. There are many ways to stream movies, TV and
music into the home now. In that sense, the Xbox One and the
PlayStation 4 are no longer in a traditional, head-to-head battle.
"It's really these consoles against everything else," says Scott
Stein, senior editor for the tech blog CNET.
While game console sales have been falling in the U.S., the
worldwide video game market is growing, helped by mobile and online
games and downloadable console games. Those sales are more than
making up for a declining demand for game discs. Gartner Inc.
expects the total video game market to hit $93.3 billion this year,
up from $78.9 billion in 2012. The research firm sees the market
rising to $111 billion by 2015.
Both new gaming systems are expected to be in brisk demand around
the holidays. Sony expects to sell 5 million units of the
PlayStation 4 by the end of its fiscal year in March. The
PlayStation 3, in comparison, sold 3.5 million units in that time
period seven years ago. Microsoft declined to offer a sales outlook
for the Xbox One through the holidays, but demand should be
comparable, says Wedbush analyst Michael Pachter. He expects 3
million Xbox Ones to be sold through December and 4.5 million
through March.
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Why does the PlayStation get a slight edge? Price could be one
reason. The Xbox One, which includes an updated Kinect motion
sensor, will cost $500, which is $100 more than the PlayStation 4.
In contrast, the PlayStation 3 went on sale at $500 or $600
depending on the model in November 2006 while the Xbox 360 cost
$400. Most new game software costs $60.
Dan Perkins, a gamer who's on the fence about which console to buy,
says the "price is certainly a factor" nudging him toward a PS4
purchase — even though he was previously an Xbox man.
"I bought the Xbox 360 primarily because I preferred the titles it
offered to the PS3. A major contributor to this decision was the
'Mass Effect' trilogy, which was initially unavailable on the PS3 at
the time of my purchase," says Perkins, 40, a librarian from
Syracuse, N.Y. "Neither platform has the edge on games in my
opinion," he says. "In the end though, a big factor will be which
system my friends adopt."
The friend factor is why Pedro Amador-Gates decided to stick with
the Xbox. The 37-year-old first-time father says he did consider
switching, but the PlayStation didn't have a chance. He likes his
interface, his username is already set up and his gaming
achievements will carry over to the new machine.
"Ninety percent is because I am already established in the Xbox
community," he says.
Then again, neither the Xbox One nor the PlayStation 4 is backward
compatible, meaning the machines don't play games that were made for
their predecessors. That gives players a clean slate to start with a
whole new set of games.
"Everyone is starting over to some extent," Stein says.
The console makers' challenge will be to ensure that everyone does
start over, instead of sticking with their own game console or
perhaps buying an iPad instead of a new game machine. Tony Bartel,
the president of the world's largest videogame retailer, GameStop,
expects the new consoles will be in "high demand and short supply"
due to a huge pent-up demand for new gaming. After all, unless they
bought the Wii U last year, people have been playing the same
consoles since before the iPhone came out.
"There's tremendous demand for innovation," Bartel says.
Given the choice between an iPad and a PlayStation 4, Sony believes
its consoles have an advantage during the holiday shopping season.
"One purchase offers something that everyone in the family can enjoy
together," says Andrew House, president and CEO of Sony Computer
Entertainment. "Whereas the other is a single-person experience."
[Associated
Press; BARBARA ORTUTAY, AP Technology Writer]
AP Entertainment Writer
Derrik J. Lang contributed to this story from Los Angeles.
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
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