One thing I'm curious about. With the push towards digital gaming, and the ability to directly download the game, why does the price not change? Should it not be cheaper for you if you download a game for your XBONE? Since there is no reason to purchase a disc anymore, as all the games will be stored on the HD...? This is not necessarily a bash at MS, because as far as I can tell that's the case for all.
Anyway, beyond my little sidetrack there, I will be going with PS4 when it comes time to upgrade from my 360. I only buy used games, so MS will put a major damper on my gaming and it's not worth the hassle.
Put yourself in the CEO seat of any company in the world that can distribute their product digitally and ohysically (most likely video, software, music and such). Would you lower the prices to the exact same amount you save on producing the physical product?
If you did you'd be fired by the board of directors.. period. Any company is solely in the market to maximize its profits and it's an art form the find the sweet spot between price and sold volume.. charge too much and customers will leave so you end up with less revenue. Charge too little and you may get a flood of new customers but you will still not make enough profit because of the low price (and raise prises and customers might leave again).
With videogames the market is even smaller.. you have 2 (if you count Nintendo 3) major companies and prices have settled to a rough equivalent. Why would you lower prices when you know the customer can't switch easily to the competitor because he would need his specialized equipment first (and only a small fraction of gamers really own both consoles). So he'll either quit gaming (very unrealistic) or pay your prices through clenched teeth.
A simple equation and you'd need put in active work to drive away your customer once you have him.
Owain Taggart wrote:
No matter what people say here or at IGN/Gamespot/the million other video gaming sites.. the XBO will most likely be a success and Sony won't dominate the market like the did during the PS1 and PS2 days. That's over once MS established itself in the market and permanently grabbed a piece of the pie.
Well, as Sony has demonstrated in the past, even the big guys fall. It happened to Sony when they had been big the previous generation, and it can happen to MS. There's no such thing in an industry as too big to fail. It all comes down to how they market them, the PR, and word of mouth. Even Nintendo got a little too confident with their Wii U after the success of the Wii. They didn't market it properly and look at what happened. The winds can change swiftly.
Sony didn't fall.. they just got a competitor with very deep pockets and the will to make it in the videogaming indústry because it is a huge business. MS too deep hits to their pockets in the first and second generation of Xbox (first was to establish itself in the market and the 360 because of the insane volume of RROD problems).
Sony also gambled and fumbled the ball a bit during the PS3 generation.. very high initial price and the uncertainty where the HD race would end up (luckily it went Blu Ray or the PS3 might have tanked hard). However Sony was protected to a degree by market recognition.. Playstation is a brand name even so far that some people who have absolutely no idea abiut videogaming refer to any console as a Playstation. This built in audience helped Sony keep up with Microsoft who admittedly rolled out some pretty good games for their Xbox franchise and quickly caught uo with Sony who had 2 generations of console experience before MS started.