Competition is undoubtedly one of the best things that can happen for us consumers. Just like how we at Gizmochina closely monitor our competitors and try to be better than them, technology companies also keep a close eye on their rivals and their moves, shaping strategies accordingly. The result is products with better performance and more competitive prices. The recent FTC versus Microsoft (Xbox) case has showcased how a tech giant closely observes its competitor PS5 and tailors its strategies accordingly. Here are the details…

This Microsoft Xbox Was Quick to Respond to Sony’s PS5 Announcement and Price Hike, Emails Show

The ninth-generation console wars are in full swing. In this context, Microsoft’s Xbox Series S/X and Sony’s PS5 are fiercely competing to become the best-selling console. Moreover, the anticipated release of the Nintendo Switch 2 is expected to add a new dimension to the competition, much like it did in 2017. Have you ever wondered how these companies are reacting to each other’s new products and moves? The recent FTC vs. Microsoft case has shed light on this.

If you remember the launch period of the PlayStation and Xbox, both consoles were announced just a few days apart and videos explaining their features were released. Case evidence reveals a series of emails exchanged among Xbox executives that shed light on how they reacted to these announcements. For example, there is an email from Liz Hamren, who was the Head of Platform Engineering and Hardware at Xbox at the time, pointing out the strong and weak points of the PS5 compared to their own products.

In the email, Hamren starts off by praising the SSD of the PS5. Although this is unsurprising, he manages to disappoint Xbox users when discussing teraflops. As you may know, the Xbox Series X has 12 teraflops of power, while the PlayStation 5 has only 10 teraflops. This has been frequently pointed out by both Xbox fans and the media. However, the email states that “GPU teraflops and CU is not a good measurement of performance.”

In the email exchange, the topic of Sony’s increase in PlayStation prices last year is also discussed. When Sony announced the price hike, Tim Stuart, the CFO of Xbox, reached out to Phil Spencer and Microsoft’s CFO Amy Hood. Stuart noted that the Xbox team had foreseen this development and was swiftly putting a plan into action now that they had official confirmation. Although much of the email conversation is redacted, it’s evident that Spencer is advocating for a gamer-centric approach to any potential price changes.

Ami Silverman, who was then in charge of Microsoft’s consumer sales and marketing, agreed with Spencer’s sentiments. Silverman responded, “Excellent points. Let’s maintain our focus on the gamer community. We’re not out of the woods yet, and this could be our moment to either win over fans or risk falling behind as a mere follower.”

Microsoft’s reaction to Sony’s PS5 announcement and price hike shows that the company is well aware of the competitive landscape in the video game industry. Microsoft is also clearly committed to remaining competitive with Sony in terms of both price and performance.

RELATED:

(via)

RELATED ARTICLESMORE FROM AUTHOR