So we've seen Sony, Microsoft and Nintendo completely blow launches these last two generations. With the little information we know coming from Playstation and Xbox regarding next gen, what do you all think will be the best strategy for these two to be successful next generation. Here is my take.
1 - Like this current generation, Playstation needs to let Xbox show their hand first. There is no reason for Playstation to tip their hand because they are still outselling the competition, even with a power disadvantage. Sony has nothing to gain and everything to lose with a botched reveal. It would benefit them most to let Xbox reveal their console(s) and then nail down the details like RAM, HDD's and price after. If Playstation were to go first, it would be an insane mistake. But looking at how Playstation has been flip-flopping on things like cross-platform play and streaming to other devices, it looks as if they are uncomfortable, even in the drivers seat. I don't get it...
2 - If the multiple console rumors are true, Xbox needs to stagger their launches. Launch the streaming Xbox first, build the library with the promise of the ability to stream past and future gen games, and build the revenue stream through software sales. Launching the inexpensive streaming box first would be genius. At the start of every generation, console makers sell their hardware at cost or at a small loss. With a streaming box that cost less than $100 to produce, Microsoft can build a strong software library and then launch the powerful console without the game drought. Then Xbox will have the install base that can support the financial hit a console that costs around $400 to produce. I'm talking 12-18 months of a window here. Launch the streaming box and reveal the powerful console with the promise the streaming box can support any software that is released. Put the Xbox streaming software on TV's, PC's and streaming products and the software will reach more homes than they ever could before. Then, Xbox could eat up even more 3rd party studios with the promise of more sales to a wider audience. It seems as if Xbox is a couple of years ahead of Playstation here with the streaming services. Lets see if they can capitalize.
3 - That brings me to my final point. People seem to miss the point of offering streaming services. It's less about being convenient for consumers and more about getting rid of the need to produce expensive hardware. It also grows the install base to anyone with a TV or phone. Xbox and Playstation make the majority of their money on software sales and accessories. If they can successfully get rid of these expensive boxes, the sky is the limit for their success. But don't get it twisted, they aren't going after streaming for any reason other than to shrink costs and maximize the user-base. Aka the revenue stream
So what is your recipe for success???
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