How Microsoft Can Dominate Console Market With Xbox
Microsoft began this new generation with a rocky start, via the emphasis on Kinect and the Xbox One’s focus on features non-gaming. The company knows what it did right and what it did wrong, and now with the Xbox One S available, they are in position to take back a considerable share of the console market.
The Xbox One S has been available for the past few weeks and from what Microsoft has been saying, the console is selling well. Xbox One S’s 2TB model has already sold out and other SKUs are performing well too. In their post about “Looking Back and Looking Forward” today, they talked about how things have been and where they are going.
Aaron Greenberg mentioned Xbox One S in a new post today. “We’ve seen unprecedented demand for Xbox One S across Europe and around the world.” It’s a very interesting detail to note the success of Xbox One S in Europe because previously, PS4 has been absolutely smashing Xbox One when it comes to sales in Europe.
While Microsoft isn’t sharing exact numbers, it’s clear that the Xbox One S is selling well. Its positive performance is indicative of a shift in momentum with the firm finally breaking through with improved sales numbers. This is just the start for Microsoft and Sony needs to be on their A game with PS4 Neo.
Sony’s dominance this generation is inarguable, however, the tides seem to be turning with the impending arrivals of PS4 and Xbox One console upgrades. Messaging is something Sony nailed when they introduced and promoted PS4 and it is something Microsoft struggled with initially.
Since the whole Xbox One debacle of 2013, Microsoft has been extremely consistent about giving gamers what they want. It’s now showing through in the Xbox One S’s performance and that could continue when they launch Project Scorpio next year.
We all assume that this coming Sept. 7th is when Sony will unveil the PS4 Neo, and they will need to be spot on with their messaging and strategy. They’ve enjoyed an deserved amount of goodwill with gamers, and that will be tested next month. Some of the biggest questions I have about PS4 Neo is what type of exchange or pricing will the new console have, and how will it coexist with the many PS4s that are in homes right now?
An exchange program makes sense from the standpoint of adoption, however, it doesn’t make as much sense when you think about how much inventory will flood into retailers from people trading in their PS4. Something should be done to help those gamers who are willing to adopt a new console, but it’s not a slam-dunk certainty that a trade-in program will be offered.
Microsoft will have the benefit of observing the moves Sony makes because not only will Project Scorpio likely have the most powerful console, but they have time to prep software for it next year. Xbox One S and whatever they end up calling Project Scorpio will be systems that benefit from the choices Sony makes.
Microsoft will also be able to see what type of pricing Sony goes with for the PS4 Neo and will have the chance to upstage them with Project Scorpio’s pricing. I see Microsoft revealing pricing information and all of that at E3 2017, and by then, we will know exactly what is up with PS4 Neo.
The Xbox One S’s success is a sign of the shift that is coming in the console market, and it is not even the crème de la crème of what Microsoft is offering over the next year or two. This coming September will be extraordinarily interesting and I’m looking forward to seeing how everything plays out with Xbox One S’s continued sales and how PS4 Neo will fit into the market.
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