A brief overview of the latest round in the ongoing battle to dominate the video gaming market. This presentation looks at the launch of PS4 and XBox One and considers the next steps in this battle, and who the likely winners and losers will be.

1. The console
wars
Round 4
All views expressed are authors’ own. All data is included is publicly
available.

2. Background
• Xbox One went on sale Nov 22nd across Europe, with PS4 following one
week later
• In the UK PS4 sold a gigantic 250,000 consoles in just 48 hours, well
ahead of Xbox One’s 150,000 first week sales
• That’s around £100 million in sales in just days for PS4
• Embarrassingly for Nintendo it also means that both new consoles have
already outsold the Wii U’s lifetime total in the UK
0 10 20 30 40
Xbox
PS
Nintendo
25.4
33.1
33.7
2.5
6.5
1.8
European Units Millions
European sales for the previous generation of
consoles are still led by the Wii (just)
Sony have already predicted that PS4 sales will
outstrip PS3, though they still have a long way to
go
Microsoft are looking to dominate living rooms,
but sales have been slow to start

3. PS4 Positioning
• “For the Players”
• Since E3, back in May 2013, PS4 has
been winning the PR war, focusing
almost exclusively on gaming
audiences
• Less restrictive, with DRM restrictions
not enforced,
• No need to play online
• $100 (ish£/€) cheaper
• Graphics upgrade
• Good memory capabilities/usability
• Working with independent games
producers
• Connects with your PS Vita

4. PS4 for the players

5. Xbox One Positioning
• “An Invitation”
• Microsoft have struggled to overcome
the negative criticism surrounding
their product
• The console, at $499, was expensive
at launch but is reducing now
• This was meant to be the box to unite
your living room
• Kinect has got great reviews..
• ..as has voice command
• It is abundantly clear MS want you to
use Xbox Live as a base for your
content
• Everything stored digitally, portable
and accessed through your account
• This is Microsoft’s play to own the TV..
…because they can’t now dominate your phone

6. Xbox one an invitation

7. Launch PR dominated by event-heavy
stunts: Oxo Tower given a Sony makeover
• http://www.independent.co.uk/life-style/gadgets-and-tech/news/oxo-tower-given-a-sony-makeover-to-celebrate-ps4-launch-
8940355.html

8. The Sun's page 3 swapped out for a
sexier image
• http://www.pushsquare.com/news/2013/11/weirdness_the_suns_page_3_swapped_out_for_a_sexier_image

9. Massive Xbox One reveals regular
sized consoles within
• http://www.engadget.com/2013/11/01/massive-xbox-one-opens-to-reveal-regular-sized-consoles-within/

10. Obligatory zombies
• http://www.engadget.com/2013/11/01/massive-xbox-one-opens-to-reveal-regular-sized-consoles-within/

11. Obligatory ads in the bathroom, E3
2013
• http://gamerfitnation.com/2013/06/e3-2013-xbox-one-marketing/

12. New Zealand Xbox shark tank..
• http://www.thetechgame.com/News/sid=5671/microsoft-puts-xbox-one-in-a-shark-tank-in-new-zealand.html

13. Microsoft keeps it polite

14. For gamers, there’s little doubt:
PS4 takes the crown
• “Final Verdict. Drumroll please: and the winner
is... Playstation 4. Taking an early lead with crisp, hi-res
graphics, a stronger, smarter online experience, and full
remote support for the Vita, the PS4 seems to have it all
together right now. The new redesigned Dualshock 4
controller has some smart upgrades. If you're on the
market for a powerful gaming experience the PS4 has
what you're looking for.”
• http://www.mtv.com/news/articles/1718442/ps4-versus-xbox-one-which-console-better.jhtml

15. But, Microsoft and Sony have different
goals in mind…
would like to compete with..

16. Sony are challenged to think in a joined
up manner across divisions

17. Microsoft have other companies in
their sights

18. Microsoft have other companies in
their sights
Social
Video
Social
Payments
Video (calls)
Content hubs
Search
Mobile
Computing
Tablets
Content
Tablets
Payments
Payments
Retail

19. Microsoft have decided where they
want to win: your living room

20. Microsoft and Sony both recognise the
power of social & TV
• MS emphasised during watching
TV, sports
• Skype in your living room
• Sony keep it within games
environment
• Facebook tie-up
• Fast video share and upload

21. Microsoft looking to create your one
content hub
• Universal look and feel across:
• Win 8 PCs
• Win 8 Tablets, incl. Surface
• Nokia Windows phones
• Wide range of apps available at
launch, incl. Amazon, Netflix, with
more to come
• The main competitor here is probably Apple
• However, they are yet to translate their domination of
MP3, tablet and smartphone into a share of the living
room
• Apple TV has chugged on steadily to around 20m sales
globally in 5 years, but have they something more
around the corner?

22. Implications: has console gaming
peaked?
• Lots of hype, but the golden era of video gaming is probably over
• PS2 sold 150m+ units, PS3, 80m, PS4 projected 49m in next 5 years
• Now too many alternatives:
• Handheld consoles, mobile and tablet, PC gaming
• One clue: Nintendo, king of video games has just invested in Dwango
• Whilst publicly saying Wii U will still be supported, even Nintendo are
looking to make the move to mobile gaming

23. The move to PC
• Clearly console gaming isn’t going to perish overnight, but it may have
peaked
• Sony are selling each PS4 for a loss. Given their finances, if the console
isn’t a hit soon, with users buying several games, they may not give it long
• Increased 4K TVs and high end PCs running UHD games may spur this
decline faster, depending on take up

24. The battle for the living room will spur
digital video downloads
• The largest issue holding back digital
video downloads was the ease of playing
them back on a TV, and storage
• Xbox One may change all of this
1. Storage and access of digital content
becomes simpler
2. The promotion of easily searchable
streaming apps could create a wave of
additional subscribers
• Digital revenues for video across EMEA
will grow by 23% YoY in 2014
– Physical sales will drop by 4%, according to
PwC

25. Which horse to back?
Sony have financial
headaches
No clear united
strategy across
devices, unlike MS
Likely winners Problems ahead?
Danger Wii is falling out of
favour
But huge cache in
characters and mobile not
tapped at all yet
Strong revenues,
available everywhere.
Staying relevant is a
challenge
Huge cash pile. Strong interest in
mobile gaming. Looking at TV but
why no announcement?
Android pre-eminent.
Large cash pile
Google wallet could be
key
Fantastic product, but is
it good enough to change
our living room habits?
Best placed to work with anyone.
Likely to be #1 content distributor in
a few years. New TV product cheap
and convenient

26. Thanks!
Dan.Matthews1234@Gmail.com

27. Appendix
• Notes and Reviews

28. Ps4 overview – 8/10
• Best bit The PlayStation 4 demonstrates a refreshing self-awareness from Sony. Gone is the advanced Cell processor
that put developers off getting properly acquainted with the PS3, so while the PS4 is powerful, it's simpler to develop for.
It's less bulky than the PS3, too, and old hands will be relieved to know that the controller is significantly improved.
• Biggest letdown Unfortunately, early purchasers will likely struggle to justify buying their console at launch. Promising
games such as DriveClub and Watch Dogshave been delayed, and the exclusives Killzone and Knack are only mediocre.
However, plenty of great multi-platform games – such asAssassin's Creed and Lego Marvel Superheroes – look even
better on PS4, with some in higher definition than on the Xbox One.
• Unique feature One feature to make Xbox One owners jealous is "Remote Play", through which you can play PS4 games
on your handheld PlayStation Vita. Lag makes the streaming experience less than perfect, especially if you connect from
afar, but being able to use the Vita as a second controller in games such as Knack and Lego Marvel Super Heroes is a
blessing.
• Controller The DualShock 4 strikes a balance: is similar enough to the previous DualShock controller to maintain the
brand but without its significant flaws. Both the touchpad and speaker are interesting additions – inKillzone the former is
used for menu selections and the latter to play audio logs – but most welcome are the concave triggers and a shape
clearly designed for comfort.
• Connectivity Aside from the DualShock 4 and Vita, you can also have some control over your PS4 with the PlayStation
Camera, an optional accessory left out of the basic console bundle to keep costs down. However, its response to voice
commands is inconsistent, and its facial recognition feature, while impressive, is no quicker than using a controller to log
in.
• Social With long-awaited group chat and the ability to log up to 2,000 friends, it's clear the interactive aspect is a key
component to the PS4. While the record of everything your friends have done is excessive, the ability to capture segments
of in-game footage and to stream as you play shows a real understanding of the modern gaming landscape.
• Room for improvement As the PS3 and all it has to offer have evolved over the years, so too will the PS4. Let's hope it
won't be too long before Sony releases an update with options to customise the home menu, which is currently no more
than a horizontal line of every game and app installed on the device.
• Overall Sony's goal for the PS4 was simplicity, and that's reflected in both the physical design and internal architecture,
which paves the way for a console that is focused on gaming. While only a few of the exclusive launch titles are
worthwhile, those delayed big-budget titles and a promising roster of independent developers should fill the gap before
long. Score: 8/10
• http://www.theguardian.com/technology/2013/dec/01/xbox-one-versus-playstation-4-review

29. PlayStation 4 ad brings video games
into the real world
• The minute long clip licenses the classic Lou
Reed song 'Perfect Day' and features two
PlayStation owners happily destroying each
other in a sword-fighting game, car race, and
a war and sci-fi shooter - each element with a
hat tip to popular PlayStation titles The Elder
Scrolls Online, DriveClub, and Killzone
Shadow Fall respectively.
• http://www.creativebloq.com/3d/playstation-4-spot-brings-video-games-real-world-10134892

30. Ps4 future
• If put to the test, I’d wager that the system’s social
aspects will be a quiet revelation in how we play over the
next decade.
• Besides the sidling of consoles onto our Facebook
pages (not to mention clever implementation that sees
our friends ‘appearing’ in multiplayer suites like The Last
of Us), the feature which allows others to take control of
your game in a tight spot is telling.
• With the modest brilliance of digitally ‘passing the
handset’ to someone else, I’m convinced this
demonstrates a future of increased connectivity and
interaction even in solo games. I wouldn’t be surprised if
the likes of Destiny or Titanfall became the norm.
• http://metro.co.uk/2013/12/04/what-does-the-future-hold-for-the-playstation-4-4213181/

31. Xbox one overview – 7/10
• http://www.theguardian.com/technology/2013/dec/01/xbox-one-versus-playstation-4-review
Best bit After viewing the original Kinect with disdain, it is a hugely pleasant surprise to find how impressive the new model is included
with Xbox One. Voice commands actually work and the camera sensor is far more accurate. Dead Rising 3 offers the best in-game
implementation so far, in calling out support commands to allies while slaughtering zombies.
Biggest letdown Many of the launch titles – conspicuously, largely first-party titles published by Microsoft – are filled with micro-
transactions (ie charging you, albeit small amounts, for extras). Forza Motorsport 5, although a great racer mechanically, offers constant
nagging to buy better cars with real money, while Crimson Dragon and Ryse both lure you into the Xbox Marketplace for upgrades. Digital
consumables in full-price games is disheartening, to say the least.
Unique feature More a suite than a single feature, Xbox One's dedication to all-encompassing media consumption is very well
implemented. Alongside Blu-ray playback and the usual array of on-demand services (Netflix, LoveFilm, iPlayer et al), an HDMI input
allows you to control and record TV. The 'Snap' function is also useful, running a second app, such as Skype alongside game sessions.
Controller Improvements to the Xbox One controller over the 360's are largely "under the hood", with dedicated rumble motors on each
trigger. On the surface, the A, B, X, Y buttons are a whole millimetre closer together, start and back are replaced with menu and view –
largely retaining the same functions – and the battery compartment is less intrusive. Comfortable, but unremarkable.
Connectivity Microsoft's SmartGlass, a companion app for tablets and smartphones, is coming into its own on Xbox One. While the
strength of each title's integration lies with developers, functions such as being able to control your apps remotely, pre-load movie
purchases, participate in multiplayer games and reply to messages using your device's touch keyboard are fantastic.
Social The maximum number of Xbox Live friends now clocks in at a monstrous 1,000, a vast and welcome increase. Players can also form
parties, groups they play with regularly or only on specific games, and communicate through Kinect or a headset. Once you've
downloaded the free Upload Studio app, sharing clips of your gaming prowess is quick and easy too.
Room for improvement Beyond fewer microtransactions, home screen navigation is the area most in need of an overhaul. In trying to
simplify the user experience, the minimalist approach is instead confusing and oddly cluttered. Favourite apps can be pinned but
otherwise get clumped together in a sub-menu, making it trickier to organise. Hopefully, better categorisation is only a software update
away.
Overall Despite its relatively strong launch line-up and promising upcoming titles such as Titanfall, the Xbox One is very deliberately
positioned as a multimedia server, rather than a dedicated games console for the hardcore. TV integration may be irrelevant for the young
and tech-savvy, eschewing broadcast in favour of streaming or downloading, but for families wanting gaming, video, music and more,
Xbox is the One. Score: 7/10

32. Xbox One Vs. PS4: How Microsoft
And Sony Altered Marketing
Campaigns In Response To Xbox
One And PlayStation 4 Social Media
Reaction
• But the coincident release of the newest
versions of these platforms -- the PlayStation 4
last Friday and the Xbox One this Friday --
provides an unusually stark opportunity to
compare how the consumer strategies of the two
companies have suddenly and markedly
diverged: Microsoft is trying to drive gaming
equipment into the entertainment mainstream;
Sony, in part as a response to Micro
• Xbox -- the 360 -- if they wanted a machine
without these new features. For many, Xbox One
wasn’t living up to its tagline --“Jump Ahead.”
• http://www.ibtimes.com/xbox-one-vs-ps4-how-microsoft-sony-altered-marketing-campaigns-response-xbox-one-playstation-4

33. Xbox one future
• Something we’ll definitely see more of is that
multimedia functionality. Despite playing up to
the gaming crowd prior to release, the system
has always been positioned as a box which
does everything.
• Most of all, this is an Xbox meant for everybody.
Boasting what Microsoft hopes to be a broad
appeal across many demographics, it’s a system
which strives to cross boundaries by not just
being a console. It’s evolved far beyond that.
Will it succeed? Considering how well the 360
• http://metro.co.uk/2013/11/26/what-does-the-future-of-the-xbox-one-look-like-4202323/