Sony vs. Microsoft – Danger zone.

Sony’s advantage already looks to be at risk.

• Microsoft’s efforts to make up for the disastrous launch of the Xbox One are finally bearing fruit as the Xbox One outsold the PS4 in November.
• The Xbox One and PS4 are very similar with the PS4 having a slight edge over the Xbox One when it comes to gaming performance.
• However, the Xbox One is now $50 cheaper than the PS4 and almost always comes with a free game.
• Most games are available on both platforms meaning that price is a major driver of the user purchase decision.
• Sony is still miles head when it comes to the installed base but this development is yet another red flag.
• The first red flag (see here) is the fact that the user experience on the PS4 is awful.
• This is a big problem because the user experience needs to easy and fun to use so that users are encouraged to explore and find out what other cool stuff Sony has in its ecosystem.
• The PS4 does none of this and the user experience is so bare bones and frustrating that all one wants to do is leave the UI as quickly as possible and play a game.
• This is where Microsoft runs rings around Sony.
• The Xbox experience is cool and fun to use and offers users plenty of reasons to have a look around and see what else is on offer.
• This means that users are much more likely to discover other parts of the Microsoft ecosystem and become more engaged.
• As it stands today, Sony has very little chance of this and the only advantage it has is a much larger installed base.
• This advantage might not last long if the Xbox One continues to outsell the PS4.
• Sony needs to urgently address this shortcoming by overhauling its user experience on the PS4 and making it at least as engaging as Microsoft’s.
• This is where all the questions marks are to be found as Sony’s track record in this area is very poor.
• If this can be achieved, then the experience can be rolled out across all of its devices with something that is uniquely Sony but above all fun.
• Furthermore, Sony has many of the assets required to make this work with its portfolio of consumer devices and media assets.
• It is from a position of strength (PS4) that Sony must develop its ecosystem and it also helps that gaming is the single most important Digital Life segment.
• This is still an opportunity for Sony but as Microsoft gets its act together, that opportunity will become slimmer and slimmer.
• Japanese companies have a habit of doing nothing until it is too late but I hope that Hirai-san knows this and has already acted.
• Microsoft remains one of the best places to look for an investment in the digital ecosystem.