Price Wars Sony vs Microsoft
The most delicate piece of the next generation puzzle will be the price of the new system, given the current state of the world’s affairs. Many gamers just won’t have the money to get the new system this year due to the economic issues facing everyone. Enter “The Shopping Channel” and other aggregate shopping sites that will allow gamers to pay installments. This might be one way to get the system into the gamers hand, but the main issue will be, what will be the price
The Panasonic 3DO when it was launched back on October 4, 1993 was priced at $699.99 USD or 79,800 Yen, that exorbitant price didn’t sit well with gamers. The price of the system was later reduced to $399.99 USD in the fall of 1994, but by then it was too late. Gamers had moved on and left the 3DO in their rear-view mirrors. Then came the Sega Dreamcast launched back
on September 9, 1999 at a price of $199.99 USD. While the price was right, Sega made a huge mistake and only allowed one retailer, Toys R Us to sell the Dreamcast at first in North America. The second blunder they made was when they released Dreamcast in North America 10 months after it was released in Japan, causing gamers to scratch their heads and lose interest. So, the double whammy of alienating retailers and gamers did not bode well for the Dreamcast, which in my opinion pound for pound had the best software line-up of any gaming console in history! The best-selling game on the Dreamcast turned out to be Sonic Adventure selling two million copies.
Now that you have a bit of a history lesson. There are several unknowns about the launch of the Microsoft Series X and the PlayStation 5. First both systems are being released at the tail end of a Pandemic. Second, the economic situation for many gamers and their families is dire, and there are more important things to buy than a new console. But, in Trumpian fashion both Sony and Microsoft are going against logical thinking, and are stubbornly steaming ahead with the release of their new consoles.
This might prove to be a bad decision for a number of reasons. The supply chain is backed up in the chip market and no one is certain whether the factories producing the PlayStation 5, or the Microsoft Series X consoles will have capacity to deliver large quantities of both systems. Also, since things are being rushed will we see issues with the first run of PlayStation 5 and Microsoft Series X systems. When Microsoft launched the original Xbox, they had a plague of sorts in the form of the Red Ring of Death, which put them behind the 8-ball in terms of mindshare with gamers. However, when the Xbox one came along there were no serious issues with the system, but gamers weren’t interested.
Microsoft got blown out of the water by Sony, mainly because they hired software public relations firms with little gaming experience. They thought they could power their way through with huge ad spends and a not very compelling software line-up. That bit them hard in the exterior regions of their marketing anatomy! Now they are poised to bring out a new system. The Microsoft Series X with some decent looking third-party software and a $399 USD or $499 CDN price point. While the price will be compelling and probably less than Sony PlayStation 5 which may retail at $499.99 for the base unit and $599.99 for the PlayStation 5 pro. (These prices are educated guesses and not the actual prices as those haven’t been announced officially as of yet.) If Sony continues to utilize a solid bundling strategy and include two controllers with the pro and maybe a year subscription to PlayStation Plus they might be able to fend off Microsoft.
But what about Nintendo and Intellivision. Yes, you heard me right Nintendo is planning an all- out assault on gamers with a new Mario title, a Metroid title and maybe a Zelda title (rumor). Add a price drop to the console and Nintendo might be able to wiggle their way into a win above and beyond the other two console makers. But there’s another wrinkle coming for gamers in the form of the Intellivision Amico a $249.99 console that will offer games for under $20 and will come with two controllers. The games will be the likes of a new Earthworm Jim title and a new Toe Jam and Earl offering, we are also hearing of a solid hockey and a solid NFL title. The price point is attractive, and the game line-up should be palatable for video game fans.
So, who will win the console wars this generation? We are glad you asked. Sony and the PlayStation 5 will dominate if they keep their wits about them and don’t let the chip on their shoulder cloud their vision. Nintendo will come in a solid second with some innovative game play strategy. But they have to quit just porting titles from previous generations without adding significant new content to them. They cannot re-package titles that didn’t sell well on their previous consoles and slap a new game price on them. Microsoft and the Microsoft Series X will come in third and the Intellivision Amico will bring up the rear. It will do better than expected and will be a contender in the future.
The system will be a family machine, but families will be saving their money for rent and food instead of ponying up even $400 for a new console with a few games. 2021 and 2022 will be pivotal years for the gaming industry. Let’s see how things play out and we will be here to steer you in the right direction and help you navigate the twists and turns of the next console generation.