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How Online Services Will Shape the Console War
04 Apr 2006 08:05 | Lost Alley | Xbox 360 | Playstation 3 | Revolution
Xbox360News.com | Link to this article

DFC Intelligence's David Cole offers some controversial views as he analyzes the differing online gaming strategies of Nintendo, Sony and Microsoft as they battle for supremacy in the next generation console wars.



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1 - why is it this new generation will shape the console war and not last generation?
hardwood2001 04.04.2006 08:42
why is it this new generation will shape the console war and not last generation?


2 -
xeon121 04.04.2006 10:13
coz sooner or later they will stop development for the xbox and the ps2 simple

3 -
Lucid360 04.04.2006 11:30
The reason this generation will shape the console wars FURTHER is because again we have 3 consoles. The Nintendo, Sega, Playstation of old is now Nintendo, Playstation, Microsoft of now. With a series of miscalculations Sega was taken out of the console business due to bad reception of possibly the finest 2d system (Saturn) amplified by the emergence of 3d gaming (Playstation) and the strengths of the N64 with the kid crew. It could happen this generation with consoles also. Because the market cannot hold 3 options for long.. And risks are being taken. Sony is risking alot with a 10 year projected life cycle for PS3 opposed to the normal 5 years, Revolution with its controller, XB360 is in the safest place of all the consoles, being a little conservative in the innovations it is trying to produce. Don't read that as a slam on the 360 sometimes being safe can be a gamble. SO there is ALOT at risk for Microsoft, Sony and Nintendo. Sony and Microsoft are the safest and as such have the deepest pockets due to the fact they are megacorporations with interests other than consoles. Nintendos legacy is gaming. We lost one legacy of gaming company last generation in Segas console. Sony and Microsoft definately have the most to fight over. Considered on many levels, Brand Superiority, America vs. Japan (and that is important to Japanese who show fanatic support for companies on their own country). Microsoft risked alot to run out almost a year early before PS and Nintendo. Because Sony has seen how big the online gaming thing is and are now trying to catch the wave. Nintendo is banking on a new controller to change gaming as we know it. That is why this generation of consoles is important. Does the market place want to play it safe with an established company that started the revolution (Sony), Fully want to grasp online gaming with a different company (Microsoft), Grasp new methods of gaming and ideas (Nintendo).

4 - some glaringly obvious points... sorry this is long
asdf 04.04.2006 11:37
"The issue of which online service is actually better is not even likely to come up in this scenario. In the consumer's mind it is included for free with PS3 versus you must pay extra with the Xbox 360. That could even explain why a PlayStation 3 would cost more, Sony was nice enough to throw in the online service for free."

This is an extremely weak argument. It might work for low-end consumer electronics, like a CD player, but I find it hard to believe that most people will walk into a store, ready to buy a console, without knowing at least something about the relative strengths of the consoles. Even parents who buy for their children go in with a very specific "order" from the children, who have undoubtedly done their research.

"But even with all its success Halo 2 sold to only about a third of the Xbox installed base. And of that third only about another third (at most) were Xbox Live subscribers. So we are still talking about a subset of a subset. When you are dealing with the type of hardware numbers Sony is looking for with the PlayStation 3, the Xbox Live subscriber base is a rounding error."

And this is just dumb. Let's look at LAST generation's numbers and just copy and paste them into a prediction about THIS generation. Bright. So the original Xbox had only about 10% of its owners on Live. The 360 now has fully half of its owners subscribing to Live, and with Microsoft continuing to push Live's importance, this can only go up. I for one never had any intention of getting Live when I had the Xbox, but I was sold on its increased usefulness (more games, more people to play with) on the 360, so I got it. I have to think that other gamers are thinking the same way.

"On the other hand, looking back to what Sony was talking about in 2000 it is clear that Sony has not been ignoring the online world."

But did Sony actually DO anything that they said they would in 2000? Did they even try to? No, it was just more lies and hyperbole to hype up their system. Somebody in marketing may have thought it was a good idea, but the people who actually make this stuff haven't been doing a thing with it until Live scared them into it a few months ago.

Finally, his discussion of the market value of these companies is just idiotic. It's not the console wars that are hurting Microsoft and Sony: Microsoft has stayed relatively stable since the tech bubble burst in 2000-2001 (after the initial point that he chooses to compare the present with), and Sony's video game division is its strongest. Sure, Nintendo has "only" lost about 10% of its value, but they are a video-games-only company, and so they're not a reasonable comparison.


5 -
Lucid360 04.04.2006 11:46
nice post asdf. I agree with you totally. Was posting kinda sorta the same thing myself at the same time. LOL

6 -
Unregistered - The M.A.R.T. 04.04.2006 13:35
I almost agree with all above.

@Lucid360

I don't agree with the deep pockets of Sony, they have been in deep financial problems due to disturbing cash flows, had to reorganize and fire people, but still isn't having a great financial picture overall.

If we take the stock rates of the three companies, MS did the best since the year 2000 with only cuts to 50% of its value, if I'm right Sony got chopped to 33% of it's value.

In the end, MS will have the longest breath. And we've seen it before:

OS/pushing hardware to use Windows --> MS has domintation
Browser --> Netscape was big some time, IE defeated it in no-time
Messengers --> ICQ was unbeatable one time, who is not using MSN nowadays?

Now that were all software products, but still if it's not with the 360, it will be with the next-next-gen ;)

Consoles --> Sega/Nintendo lots of years ago, then Nintendo/Sony for some time, now it will be XBOX-MS/Sony and a little bit of Nintendo there are always some kids playing Mario and Zelda which will not die easily ;)


7 -
Unregistered - pro logic 04.04.2006 15:01
How online services will shape the console war:600 bones for the ps3...online service better be free...this copying of this online option will keep sony from getting there a$$ kicked...and the war will continue as it did last gen

8 - get-the-FU-out
Unregistered - Ginseng 04.04.2006 15:18
Microsoft has big plans with they're online service,and it will cost money to operate it, sonys lieing!sonys going to have a on line service that will compete with ms for free,how long will that last lol.Thats what im talking about,sonys short cuts to stay on top they do it with the games too,pretty picture but poopy in game looks

9 - Vision vs sales
Unregistered - kyseec 04.04.2006 15:41
MS has a vision to make the online service a revalutionary way to communicate and to play,so one day owners of xbox will one day look back and say,i wonder what it was like before xbox live,much in the same way we today would say i wonder what it was like with out phones and tv/then you got sony trying to keep up just for sales, and sonys service will be free, that tells you right there that its a gimmic to keep in the lead ,and not a vision.

10 -
Unregistered - missy-e 04.04.2006 15:50
I can't wait for the camera ,so i can connect with family & frieds,it will be like useing a hytech phone thats da-bomb

11 -
Unregistered - spy-hunter 04.04.2006 15:53
You can surf the net with sony and you don't need a pc.

12 -
Unregistered - missy-e 04.04.2006 15:56
that cool/but i got one, inter huh is that safe for a console?

13 -
Unregistered - missy-e 04.04.2006 15:59
Whoops! is it safe for the enternet ?/i got 5 min left

14 - sony rules u fools
Unregistered - spy hunter 04.04.2006 16:04
is it safe on the inter-net don't know, that a good question still xbox sucks

15 - 00000000000000
Unregistered - WHAT THE FU#$ 04.04.2006 16:21
NO MATTER HOW YOU PUT IT MICROSOFT WILL WIN THE ONLINE BATTLE BECAUSE MICROSOFT HAS ALREADY ESTABLISH THEMSELVES WITH THE FIRST XBOX ONLINE CAPABILLITIES DURING CURRENT GEN.HAS SONY CARE TO MUCH NO.HAS NINTENDO CARE TO MUCH NO.IT'S GOING TO BE VERY HARD FOR SONY AND NINTENDO.YES SONY WILL HAVE ONLINE FOR FREE BUT HOW LONG WILL THAT LAST COME ON ITS SONY.EVEN IF IT IS FREE.SONY WONT HAVE ANY CHANGE WITH MICROSOFT PERIOD.AND IT SEEMS LIKE WHO EVER WROTE THOSE PAGES SEEMS LIKE AN SONY FAN. PEOPLE NEED TO STOP BEING COMPLACENT ABOUT THE SONY BRAND THERE OTHER BRANDS OUT THERE THATS JUST AS GOOD OR EVEN BETTER THAN SONY.LETS SAY TOSHIBA,PANASONIC,SAMSUNG AND,ETC.THE ONLY REASON WHY SONY IS HOT BECAUSE THE MAKE PLAYSTATIONS THATS IT.I DON,T HEAR TO MUCH ABOUT MICROSOFT AND NINTENDO ON THOSE PAGES.AND BESIDES SONY CAN'T TOUCH MICROSOFT CASH FLOW ANYWAY THE BILLION DOLLAR COMPANY.

16 - all a round quality & value
Unregistered - kung-fu-lew 04.04.2006 16:49
Sonys more powerful,who cares!remeber the NEO-GEO they tryed to do to much and it cost to much ,what was it $800 then $700 then $600 what happend to neo-geo sony will soon be going that same rout.people these days like change, and MS is fresh

17 - is he for real
Unregistered - pro logic 04.04.2006 17:12
Who in the hell will spend 5 or 6 hundred dollars on a system that plays games like crap and has free connectivity and no built online services...the average person can't come up with the 4 hundred dollars for xbox...only the hard core fans...and the japanese will buy it...the guy in the web pages made some mistakes...the best one is average jo is not somebody thats willing to spend 3/4 of a grand on sony...these days people do seek knowlege on what they are paying for...and do compareasome bargon shopping...it is a trend of today average joe...don't spend 700 bucks on impuls/average jo got bills 2 pay.

18 - Sony PR lies
Unregistered - The M.A.R.T. 04.04.2006 17:15
1080p on two screens?

YEAH RIGHT SONY LIES

It could only get 1 screen do 1080p and only in 4096 colours, with not to many polygones/graphics on screen, so expect Tetris in 1080p, the rest in 720p (as the 360 does) or maybe even in 480p because Sony doesn't demand 720p standaard as MS does with the 360!

Sony lies continue: PS3 get powerfull online capacities... They also said that about the PS2 and see what a bad online function that has. Sony is only good in hyping overpriced sh*t that looks like a bread toaster and it's controller like a freaking boomerang

MS never looses, see my post before this one and you'll be confinced


19 -
xeon121 04.04.2006 18:00
#11
You can surf the net with sony and you don't need a pc.

dude why the hell would u wont to surf the net on your consol?


20 -
Lucid360 04.04.2006 18:30
I can surf the internet with my Dreamcast you morons talking about how cool PS is. Sega Dreamcast was the first console to have browser surfing on the internet. Geeez. And the way they did it was alot safer than with a PC. There is nothing really to infect on that console... you going to infect the VDUs awww... Now they have hard drives and more PC like OS systems so it might be easier... Even thought the Dreamcast used a version of Microsofts kernal and OS in the DC it was radically different.

21 - 4 the M A R T
Lucid360 04.04.2006 18:38
I agree with you Nintendo plays that niche to their advantage... MS and Sony target a different demographic and that is why Nintendo is even still around after the Gamecube.. The Gamecube was big for about 2 mins. Not that it sucks ... just Nintendo has intrenchged itself as a pre teen gaming machine and they work it well. No need for them to compete for the worshipped 18-34 demographic they are locked in because every kid who is 7-8 wants a nintendo. Good safe business for them. Yes agree on the whole Microsoft is a juggernaut that is so diversified they can prectically do the XBox thing as a hobby. Sony is losing due to the immergiance of the ipod... Wheres the Sony walkmanpod? Yes when I am buying electronics SOny is a good brand but MS is going everywhere. Hell they took a loss on the WebTV thing and didnt even stop because even all the geeks who love opensource ... LINUX still has a WAYSS to go to challenge Windows. Browsers are such a niche market now and windows got beat down with their I Explorer over intergration but they are a massively amorphous company and they adapt. Someday they might go down but right now Microsoft is the oil companies of the 20th century for the 21st century... control the information and you are a master of the world now-a-days.

22 -
Lucid360 04.04.2006 18:40
sorry Miucrosoft got beat down... not windows got beat down.

23 - l still like u nintendo but, im all grown up
Unregistered - word 2 da Y{s} 04.04.2006 19:17
Sony a what a mess, third party online services, if they can't aford it, baybe they sould not do it . They got a foot in the door,by offering at least something, although its a shady tatic it will help them stay alive. Then they will have others pay for they're #1 spot in the vid buissness, 3rd party! thats cunning, its like Nintendos-(REV) ,we can no longer compete ,see this revalutionary controler. But it seems to work for both companys.....

24 -
Unregistered - word 2 da {Y}s 04.04.2006 19:21
Whats up magic typos on this site

25 - 2006
Unregistered - sony ain 't sh#$ 04.04.2006 19:32
people need to stop and do some knowledge about there electronics and etc before the purchase.it doesn't matter what brand name it is.although people need to just stop looking at the sony brand just because they make playstations.if a tv says sony you will pick it up if a surround sound says sony you will pick it up.you come home and your not satisfied and disapointed about the product. the only reason why sony is so hot is because they make playstations. other than that their nothing period.in my opinion toshiba is an better brand than sony because toshiba do there job right and not have an ego behind them.im waiting for sed to come out its going to blow lcd and plasma out of the water period.

26 - OPEN THE WINDOW 4 ONE MINUTE
Unregistered - POP EYED PETE 04.04.2006 19:51
LOST PLANET! LOST PLANET! LOST PLANET!, AHH! FRESH AIR

27 - it looks like its inhaleing $hiiiit! more like its about to deflate
Unregistered - mob deep 04.04.2006 20:06
I was hopeing this subject was on this site,thanks for the ideas MS now we can use them on a far better console,i can't believe MS lasted this long!your games look like n64 games ,thats why it costs 400 when ps3 comes out we will shuff xbox out of the game in 4 months.

28 - sony rules!
Unregistered - spy-hunter 04.04.2006 20:12
u figured it all out x does'nt mark the spot MS suuucks!

29 -
Omali 04.04.2006 20:21
sony fanboys STFU dont be mad because you still have no console. thats one. and is it me, or is this article at least a little biased against MS? i was really surprised at the way this guy downplayed both Xbox Live and Halo 2, which regardless of whether you think Halo 1 was better or you like killsone (haha fags), you cant deny it was a benchmark for video game history, period. Xbox Live is the most advanced online community on any gaming platform, and that DOES count for something. That example he gave with the best buy was really dumb too, because i doubt a Joe Schmoe would get the PS3 over the 360 JUST BECAUSE online is free because 1) he himself keeps downplaying the impact of online gaming on consoles in general, not only xbox, and 2) he fails to bring the price of the PS# into the picture at all. If the PS3 costs $700, what regular person would give a rat's ass about free online if the console itself would break the bank? idk if it's just me but this guy's arguments we're way too weak and really didnt show the "tons of research" they apparently did.

30 -
xeon121 04.04.2006 21:14
at the end of the day it comes down to the games not the hardware, and the 360 is rules rite now becouse we have games! live owns plain and simple the ability to dl demos on marketplace before we buy is fantastic.Sony will never match that never, most games like ea games will be multiplatform so at the end of the day its going to come down to exclusives and sony no longer has exclusive rights to the games i know i want to play ie ff, mgs,and most importantly the gta serious, so peaple will have to decide do we want killzone over halo, do we want jax and dexter(lol) over graw, or do we want gow over crash bandicot, i know what i think but roll on novermber when it is the games that will do the talk

31 - IF I WANTED TO SEE ANIME I WILL GET ON DVD ,IF I LIKED IT
Unregistered - pro logic 04.04.2006 21:14
What MOB-DEEP Said was nonsence, house brands will look the same for both systems,and if they could makes games noticably better MS they would take too long to make,don't make me start, your F-ing with my groove.

32 - auu! aaau! xplop sheew ,i got to turn on the fan is that corn!
Unregistered - spy-hunter 04.04.2006 21:24
ps3 is going to rock ,when people see its the best and go to stores and see it playing ,they are going to go home and sell their xflop360 to buy ps3, its a big boy toy ,big boys get the best electronics

33 -
xeon121 04.04.2006 21:26
^^^^^^^^^^^

and this my friends is a prime example of sony fanboy marvel and the stuoidity and thank the powers that be their is a white box of goodness under ur tv


34 -
Lucid360 04.04.2006 21:34
LOL I dont attribute it to sony... I attribute it to people who are like 13 or people of low intelligence who glom onto hype.... That is all PS3 is right now... Next month we will see what kind of CG they can churn up at SOny to say their console is so much better when the universal language of mathematics says it is only about 10-20% difference in power and speed.

35 -
Lucid360 04.04.2006 21:36
If it takes SOny 5 processors to only be 10-20% more than what the xbox does with 3 hmmmmm.... the cracks form...


36 - there is now hope ps3 rules
Unregistered - mob deep 04.04.2006 21:49
hoooh---haaah---hoooh---haaah we must crush the rebel alliance!

37 - judo chop
Unregistered - kung fu lew 04.04.2006 22:00
i was ready what sa-ku-ra said i got a new name for you ps3 fan boys puffer fish

38 -
Unregistered - rick36 04.04.2006 22:09
thats a lot of %age

39 -
Unregistered - habren 04.04.2006 22:15
does this not so insightful guy talking on this subject working for sony

40 - ITS JUST FUNNY TO ME
Unregistered - PRO LOGIC 04.04.2006 23:05
SONY CLEARLY HAS SOME SOLID TACTICAL AND STATEGIC REASONS FOR NOT INVESTING HEAVILY IN ONLINE GAMES.??????? I thought sony did not think it was going to work.They where more than likely making fun of MS for the bold move. After the success of MS, and the notion of loseing the market did they copy MS.On-line gaming for game consoles is not old enough to make any predictions.Sony and Nintendo are not even out yet ,and you got this crack pot making- predictions.3rd-party ?services thats a joke, i can see me owning a ps3 enjoying my faverate 3rd party service, and one day being taken off the air, like a TV show, it will be a mess.Sony needs to provide the service,they don't want to spend the money to pay for it, or they do noy have it.PS3 FANBOYS TOO-MUCH PRIDE IS BLINDING.

41 -
Unregistered - violet blue 04.05.2006 00:07
To PS3 fanboys u still got 2 pay sooner or later correction ,sooner than later

42 - yo
Unregistered - b1x 04.05.2006 01:09
Lol Sony does a horrible job with online. If Microsoft does;nt sue Sony for there coying I'll be shocked lol.

43 - yo
Unregistered - b1x 04.05.2006 01:11
Lol Sony does a horrible job with online. If Microsoft doesnt sue Sony for there coying I'll be shocked lol. Ps2 online came out months before xbox live did and ps2 online got crushed. Even though it was free it was still murdered! the PS3 is an xbox 360 wanna be...(why else would Sony copy Microsoft)

44 - GOOD NIGHT ,AND GOOD LUCK { i know im a copy cat to-pro logic}
Unregistered - dolby dig-it-tal 04.05.2006 02:07
Just Like Neo-geo/SONY Needs A Better Game Plan/I Was Wanting The Power House Called NEO-GEO It Cost So Much! That It Was Not Even In The Main-Sream Market And It Was Way Better Than Anything Out At That Time/If They Don't Drop The Price To Around 360s Range /It Will Be The Same As (N/G)/Most People Don't Bother With Things That Are Sky-High/Like Ten Thousand Dollar TVs/It Turns Them Off/Just As Good And Cheaper Is The Modern Thought Prosses/Sony Will Sell A Lot Of PS3s A Launch Because Fans Had A Year To Save Up/It Will Slow Down To A Tickle In Few Months Time/And That Is Stategic And Why They Postponed The Launch/And Heres A Few Reasons[ #1 xbox at a level of qaulity that sony did not have and went back to the drawing board. 2# retro fit it with online abilties.#3 to spread hype about blue-ray and have anough time for it to be known to the public so it would not flop, this could be fiction but i dought it

45 - viva is the greatest
Unregistered - sa-ku-ra 04.05.2006 02:15
I can play viva on line thats cool peace!

46 -
Unregistered - wallop willy 04.05.2006 02:26
We dont have many ps fans down here mates

47 - How Online Services Will Shape the Console War:Nasa Is Not The Only Ones
Unregistered - polemonium 04.05.2006 02:59
How Nin/PS3/ms Will Shape The Going To mars War-[MS being the space shuttle]

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