playstation 5 production

Market Research Firm Thinks Microsoft Has Handed PS5 an Advantage by Focusing on Digital Strategy

Analysts at market research firm DFC Intelligence believe that Microsoft’s heavy emphasis on its long-term digital strategy has handed Sony and its PlayStation 5 a “major” advantage.

In a note published on its website, DFC echoed the thoughts of a number of industry professionals who believe that Microsoft’s messaging surrounding the next gen has been confusing, and that the Xbox Series S has added to that confusion. According to DFC, early adopters will not want the inferior $299.99 system. With both of its consoles, Microsoft remains focused on a digital, subscription-based future, which works just fine on its current hardware and leaves players little reason to upgrade.

DFC further wrote:

Whatever hardware can be delivered in 2020 will sellout. The console systems are likely to be in short supply and Microsoft may be able to manufacture more Xbox Series S units. In theory this could give Xbox a larger initial installed base.

Unfortunately, everything else is clearly in favor of the PlayStation 5. Microsoft lost control of the media message and it is looking like PS5 will be the system for those that want to play exciting new games.

The Xbox brand seems focused on a digital future for classic franchises delivered via Game Pass and cloud streaming. As we have discussed this could be a solid long-term strategy. However, for selling a high-end new game system it is less than ideal. The current Xbox One platform(s) work fine for Microsoft’s digital strategy.

DFC reiterated that it expects the PlayStation 5 to outsell the Xbox Series X.

All eyes on Sony now!

[Source: DFC Intelligence via Wccftech]