Sony Will Lose the Console War With PS4's Lame Video-Streaming Strategy



Congratulations, Sony, you just lost the console war.


Sony held reporters hostage for two hours Wednesday as it unveiled a new PlayStation controller, made a lot of promises about the PlayStation 4 and showed all the demos in the world. What it didn’t show us, aside from an actual PlayStation 4, is any kind of streaming-video strategy aside from the obligatory nod to Netflix. And thus it sealed its fate. There simply is no way Sony can compete with Microsoft without streaming video.



Andrew House, CEO of Sony Computer Entertainment, told the assembled press, “The living room is no longer the center of the console ecosystem, the gamer is.” Sony wants games to go with you everywhere. That’s a smart move, but no matter how you spin it, the PlayStation must be part of the living room if it is to have any hope of taking on the Xbox 360 — and any future consoles coming out of Redmond.


Sony was vague about pretty much everything regarding PlayStation 4. And it said nothing whatsoever about its video content plan — in fact, the only hint that Sony even has a video content plan was a slide featuring Netflix, Hulu and the like. Sony must do better than that. A lot better. Gamers increasingly look to their consoles as the gateway to streaming content. This is especially true for one of the PlayStation’s largest audiences, 20-something cord cutters. Ignoring that audience to show off 90 minutes of demos was a huge mistake. Anyone who watches TV and plays games will be wary of a console that only plays games while taking up valuable HDMI port space.


Microsoft gets this, and has been extremely aggressive in ensuring you keep your Xbox 360 on all the time. Microsoft has teamed up Comcast and Verizon to bring viewers on-demand shows. Plus, it was one of the first devices to get HBO Go. Sure, I can share a video of a game I just played with the yet-to-be-seen PlayStation 4, but can I use it as a DVR cable box? How will I watch Girls and Downtown Abbey on this thing?


Sony’s quick mention of streaming apps like Netflix was followed by a promise to talk more about its strategy in the coming year. But if the photo of video-streaming apps that appeared on stage during the presentation is any indication, PlayStation 4 doesn’t offer anything more than PlayStation 3. That’s a big fail these days. Having a Netflix app on your console is nothing. Everything has a Netflix app. You can watch Netflix on phones, tablets, computers, Blu-ray players and ovens. That’s not a strategy, that’s keeping up with two years ago.


And so we wait for more news from a company that once upon a time built really cool products people wanted. Sure the demos were dazzling with fire, explosions and so much soft lens flare. But open HDMI ports on HDTVs are scarce, and Sony is entering a tough market. Why would anyone buy a device that does one thing (games) marginally better than another device that also lets you watch Game of Thrones the day it airs? They wouldn’t.


The game has changed. It’s not just about games anymore.


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