Xbox One vs. PlayStation – Different minds

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Sony must fix PlayStation if it is to hold onto its lead.

  • Since the launch, PlayStation has systematically beaten Xbox One at every turn.
  • On price, accessories, used game policies, independent game developers, performance and geographic restrictions Sony has Microsoft on the run.
  • Sony has also soundly beaten Microsoft when it comes to the PR campaign and has forced Microsoft to dance to its tune.
  • This has resulted in PlayStation 4 substantially outselling Xbox One by 9m units to 5m to date.
  • This is a great start but there is one crucial aspect where the Xbox beats Sony and beats it hand down.
  • The user experience on the Xbox One is vastly superior to the PlayStation 4 which feels crude and rushed at best.
  • The Xbox user experience is fun and it is cool compared to PlayStation 4 which simply allows the user to play games and very little more.
  • It is almost a relief to leave the user experience and fire up a game as Sony has provided the user with no reason whatsoever to discover and explore.
  • A few of the most significant shortcomings are as follows:
    • The UI is bare bones with no richness or eye candy.
    • Uploading a gamer photo is impossible without downloading an app. to an iOS or Android device. It is not even possible from the website.
    • The PlayStation Network (PSN) website is slow, badly designed and is a generally frustrating experience.
    • Loading cash into the wallet for PSN purchases is an incredibly cumbersome, labour intensive and frustrating experience. This is mostly due to very tight geographic limitations on the location of the account, source of funds and badly written software.
    • Integration with any other device that is not manufactured by Sony is a pipe dream.
    • Sony has made one or two minor functionality improvements since launch whereas Microsoft has added new features and functions left, right and centre.
  • These differences speak volumes about the mindset and culture of the two companies.
  • When it comes to user experience and ecosystem, Microsoft is thrashing Sony whom I am not even sure is aware of the problem.
  • This is a major problem for Sony as the emphasis over time is going to move away from hardware and into the ecosystem and user experience.
  • Microsoft has made horrible mistakes with the launch of the Xbox One but it has learned its lesson and is now making real headway in developing the features and functions that are going to draw users and drive loyalty in the future.
  • As the user experience and ecosystem becomes more important and Microsoft levels the hardware playing field, Sony is going to look more and more out of date.
  • Sony has won the initial battle hands down but it is in great danger of losing the war.
  • If it upgrades the PS4 user experience and makes it easy and fun to use rather than a chore, then it can hang onto its formidable lead.
  • Sony has a habit of letting market dominant positions slip through its fingers and a real cultural change is needed if this, too, is not to be given away.

 

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.