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What Could Sony Do To Give Itself a Competitive Advantage Against Xbox and Gamepass, Considering Microsoft's Huge Content Production Advantage?


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Microsoft's recent content acquisition of Actvision Blizzard gives it a huge content production advantage. Currently Xbox has 30+ game development studios and Sony has around 17-20.

I think Sony should take a hybrid approach in order to compete with Xbox and its gamepass service.

At this point PlayStation is definitely not going to be able to outproduce Xbox in the content category. At least not anytime in the near future.

The first thing to do, is to accept that for better or for worse a premium subscription service is a viable option. You can still sell AAA games at full price and provide quality games via subscriptions.

I think one thing to consider, is some type of merger with Nintendo. If Nintendo and PlayStation came together, the resulting company could try to go the route of a Disney+. They could leverage the huge amount of family friendly content of Nintendo and provide that at a competitive price perhaps via a service. And then keep the true AAA content cinematic content, at premium pricing.

One thing I have no doubt of, is that hardcore players will still be more than willing to pay for AAA content. They may not like it but gamers love to game and when you deliver a high quality AAA experience, people will talk about it, people will discuss it to death and people will want to play it.

I'm convinced that even if Sony sold the Last of Us 3 at $100, people would buy it. Journalists would talk about the pricing in the international media but hardcore gamers do their research. Their purchase decisions will be highly affected by their close friends, influencers and their online gaming network. If it's a quality game they'll want to play it.

Another thing PlayStation should consider(and this goes more to the hybrid approach) is leveraging its recent acquisitions of Crunchyroll and Funimation.

If I were Sony I'd combine those two with some form of gaming subscription and create some type of gaming/anime combo subscription. This would create a strong most have service for a certain segment of the population. PlayStation could very succeed in doing what Microsoft set out to accomplish with Kinect all those years ago. It could become a gateway to your favorite entertainment.

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