Xbox One vs. PS4 – Blu drives of death

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The bark is much worse than the bite.

  • It looks bad but the hard drive defect on the Xbox one looks to be no more frequent than the failures reported on the PS4.
  • The main difference is that this defect looks to be a design or manufacturing fault whereas the PS4 defects are varied and Sony is currently blaming damage incurred during shipping.
  • I am not sure I believe this explanation as none of those with affected consoles have complained of physical damage to the device on unboxing.
  • I suspect that this is Sony’s blanket explanation until it can find out what the causes of the defects are.
  • Microsoft’s case is worse. Everyone seems to have the same problem which points strongly to a manufacturing or design defect.
  • The one advantage that Microsoft has is that the defective consoles still work.
  • Games can be downloaded and played and all of the functionality seems to be working without a hitch.
  • There was substantial concern some months ago that the fact that the Xbox One has three interlaced operating systems would cause the software to be unstable.
  • My research found that there was a massive effort on Microsoft’s part to stabilise the software prior to launch but in the scramble, the hardware seems to have been overlooked.
  • Hardware defects are far easier to rectify than software and so Microsoft looks to have made the right choice in prioritising the software development.
  • Microsoft and Sony are stepping up and are shipping replacement consoles before the old ones are returned but Microsoft is taking the worse PR hit.
  • Large launches such as these always have problems and it looks like less than 1% of all consoles shipped from both camps are defective.
  • Hence, I suspect that once these wrinkles have been ironed out it will be a straight fight between the two.
  • Here the PS4 looks to me like it has an edge.
  • It is somewhat more powerful and costs $100 less.
  • That being said, Microsoft has a huge ecosystem of online assets and has done as much integration with its other services as it can.
  • Furthermore the console ships with the Kinect and has certain functions such as speech recognition that the PS4 does not.
  • Hence, as a product of the ecosystem and as an assault on the living room, Microsoft has an edge.
  • It also has much deeper pockets for a heavy marketing campaign than Sony ensuring that it will make more noise.
  • Hence, I think the market for the two systems will remain fairly balanced as it has been for many years.

26/11/13:  Correction: The section below is moot as it is based on the erroneous assumption that PrimeSense is used in the Xbox One. It isn’t. Its Microsoft proprietary. Apologies.

  • Apple’s acquisition of PrimeSense, the provider of the 3D motion detection technology used in the Xbox Kinect is not a problem.
  • The technology is already embedded and hardened in this version and so Microsoft will not need to find a replacement for another 8 years or so when the Xbox TWO comes out.
  • Microsoft along with Yahoo! remain the best sticks to look at when making an investment in the ecosystem.
  • While Sony remains the only Japanese company with a chance in this space, that is not saying very much.
  • It is much too early to be tempted with this one.

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.

Blog Comments

Just to note – the new Kinect in Xbox One uses MS’ own technology, not PrimeSense – http://www.geekwire.com/2013/apple-buys-primesense-maker-original-kinect-sensor/

Hi Nick…Thanks for letting me know….I had read elsewhere that it was in the Xbox One as well…will correct..cheers…