PS4 Vs Xbox One: Don’t Believe The Hype

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They’re off. Both Sony Corporation (NYSE:SNE) and Microsoft Corporation (NASDAQ:MSFT) have released their next generations consoles. Both firms sold more than one million units in the first 24 hours of sale, and both are looking strong into the holiday season. If you’re not a gamer, you really should ignore the hype, however.

If you enjoy quality games, and you like to play them on a console, the last week has been one of the most exciting in recent years. The Xbox One and the PS4 may not have any exceptional titles to offer just yet, but they are on the way. In the mean time cross generational blockbusters should be able to hold your attention. For everybody else, the release of a new console generation clutters their news-feed for a little while.

Xbox One Battles For The Living Room

Both consoles in this generation are battling for the living room. Both want to be the center of your home entertainment, and both offer features that make them work as such. The last generation of consoles did the same. The PS3 and the Xbox 360 let users stream video on Netflix or browse the web. They never became the center of many living room experiences, however, and there is reason to believe that trend will continue.

Despite all of the additional features they boast, the Xbox One and the PS4 do not have brands that invite non-gamers to the checkout. They don’t have the prices to compete with devices like the Apple TV of the Google Chromecast, and they don’t have the baked in simplicity of a smart TV. The Xbox One and the PS4 are media centers for people who already have one.

The battle for the living room isn’t even really being fought right now, and it doesn’t seem to be n the way. In order for a battle to happen a market will have to proven. That hasn’t happened yet, and non-gamers should keep away in case it never does.

The Living Room Doesn’t Exist

The Xbox One and the PS4 want to get into the living room so badly that they seem to have ignored an obvious question: is there really a market there? We know that people spend a lot of money on entertainment and that living room expenses, most notably cable television, take up a good chunk of that spending. We don’t know if they’re willing to spend another $500 on an interface for Netflix and Skype.

Microsoft Corporation (NASDAQ:MSFT) is a smart company. It doesn’t invest in really bad projects all that often. The Xbox One’s attempt to take the living room isn’t a bad one, but it is trying to convince investors and customers that there is such a thing as a living room machine. There’s not real basis for that claim. The hype is coming from Redmond, and those not looking for a gaming experience should stay away.

Disclosure: Author represents that he has no position in any stocks mentioned in this article at the time this article was submitted.