Sony Has Spent Far More On PS4 TV Ads Than Microsoft’s Xbox One This Year

Microsoft’s Xbox One is lagging behind Sony’s PS4 in sales. Lots of factors can be said to justify the same, but many analysts believe that Xbox One’s pricing was the significant one. Microsoft realized this and announced a new SKU for a cheaper price last month. Another factor could be around marketing of the console. Microsoft positioned Xbox One as the all-in-one entertainment console whereas Sony marketed it as the pure gaming console. A recent report from WSJ reveals that Sony is now out-spending Microsoft in TV ads for promoting their consoles. According to numbers from January 2014 through May via research firm iSpot, Sony had spent $59M to Microsoft’s $34.7M. Sony spent the most on networks like FOX, FOX Sports, Comedy Central, ESPN and TNT. Microsoft spent a lot on the two FOX channels and Comedy Central, AMC and TBS.

The brand’s most digitally effective ad year-to-date is its “All-in-One” spot, which shows off everything the new Xbox One entertainment system can do. The commercial aired more than 1,300 times on national TV since its January debut and has an estimated ad spend of $12.1 million, according to iSpot. The ad has also amassed more than one million online views and more than 6,000 social actions.

May be Microsoft should try to spend more marketing dollars until the Xbox One sales reaches PS4 levels. What do you think? Read more about it from the links below.

Source: WSJ via: Forbes

  • Drewidian

    Sony is investing so much because if they loose the PS4 VS. Xbox One, They are effectively out of the consumer electronic race. Let’s be honest, PS Vita would have failed if it wasn’t for PS4. Their Phone and tablet business is shaky at best and they are facing tough competition in the Android market. Their TV services division has been loosing money as well as their stereo electronics business. They are besieged on that front from the likes of Samsung, LG, and a host of cheap Chinese OEMs. Movies are a gamble as they require a huge up front investment. Their Market Cap is only around 18B when they face the likes of MS, Apple, Samsung(currently 184B), and Google with their recent foray into the living room. Sony is besieged on all fronts in a highly competitive market without the necessary resources to fight on all of those fronts. To be honest, they are almost ripe for a takeover. They recently got out of the PC and laptop business to consolidate and strengthen their support for other divisions. If they loose the PS4 vs. Xbox Battle, They most likely will have to merge or be taken over by a stronger company.

    • Bugbog

      Ripe for a take-over, but alas not one from international sources, as the Japanese market is quite closed to wholesale outside funds

    • koenshaku

      Hard for them to lose the console war at this point. The Xbox One is a product of too much douche bags in one room. All it has done so far is create bad PR and reserve all their marketing decisions.. Since they missed the first wave trying to figure out what board to use, it remains to be seen if the tides will produce other for them in time, but look on the bright side we all get to watch Halo TV right?

      • Drewidian

        That wasn’t really my point. While I agree that the MS team made some real blunders, the reason Sony’s team was dancing in the isles after E3 2013 was more about the fact that they had relief their business would survive in the electronics industry. In every other part of that business they were failing, breaking even, or facing stiff competition, such as Cameras, Phones, Stereo equipment, gaming handhelds, etc. PS4 was the one place they had confidence that they would be successful even at a loss. They are paying a huge amount of money for the infrastructure and development costs for PS4 supporting products like Morpheus, PS Now, and Vita/TV remote play, and the development studios which all require up front investment over an extended period of time. I don’t know how much actual cash they have on hand, but its no where near what their competitors have. At best they may have 3-5 Billion dollars, but this is all expensive R&D to build and maintain. Time will tell, and they’ve definitely seem to have a leg up on the Xbox One for now, but we still have a long ways to go with this generation of devices.

      • Rikkirik

        Sony is as a company indeed almost dead and that they are selling more PS 4 compared to the Xbox One has nothing at all to do with the One being a product of too much douche bags (what a foolish claim to make). There are more fundamental reasons for this:
        1. The value of the Xbox360 is still very high compared to the Xbox One and PS3. Last year Microsoft said that 77 million Xbox 360 we’re sold since launch and that in 2014 they expected to sell a lot more Xbox 360’s, reaching the 100 milion mark with the Xbox 360 in 2014. Those are high expectations. Xbox 360 sales are also much higer than the PS3 sales. The value of the 360 is high because Microsoft has continually invested in the 360 with Kinect for example. The PS3 has not have any significant revolutionary innovations and that’s why PS clients are (in the initial phase) replacing their PS3 with PS4 at a higher rate than 360 users are replacing their console with an Xbox One. Developers are still developing a lot of new games for the Xbox 360, simultainious with the new games for the Xbox One. Microsoft recently confirmed that developers are still investing heavily in the 360 because of the value of the console.
        2. Xbox One is still not available in most markets (for example the Netherlands, where I come from). PS4 was launched in 53 countries, the Xbox One only 13. Microsoft is launching the Xbox One in new markets this year, but still lags in the amount of launch countries compared to Sony.
        3. Because of the high value of the old consoles both Microsoft and Sony have problem selling enough new consoles. Sales of the Xbox One are dwindling in the US, while sales of the PS4 in Japan (PS home country) in Q1 of 2014 wére dramatically low (17000 units). But unlike Microsoft, which has already said that the 360 is still important to their bottomline and is still pushing the Xbox 360 (the 360 is more profitable than the Xbox One at this moment), Sony is very dependant on the PS4 to make future profits.Sony acknowlegdes that they are still losing money on the PS4 and looking at the dwingling sales of the PS4 in Japan, their biggest market, they are in trouble.
        4. Lastly, you can talk about the price diference between the two consoles, but this is no longer a factor, since you can buy an Xbox One for 399,- also.
        Microsoft seems comfortable with the accummulative sales of Xbox One and Xbox 360. It’s the totality which counts, while the media mostly stresses or talks about the newer consoles.

    • Ruufus

      When I read your comment, I realized I see Sony much the way my parents saw Magnavox as a true electronics company but in reality became a “brand” only traded and sold internationally; a meaningless non-entity.

  • david

    MS really need to take lesson form Samsung. Just advertise everywhere and your products will sell.

    • Bugbog

      Money isn’t enough. Money will only take you so far, your products also require the ‘network effect’ for full penetration; i.e. word-of-mouth from mass media, technorati (tech press, web-portals & bloggers, etc) and consumers, either with positive reinforcement or at the very least, neutrally.

      Not negatively or not at all!

      Microsoft has a lot more products that it needs to advertise than Sony, however even so they have spent over $1.5billion promoting Windows 8 and Windows Phone 8, (Xbox, I have no idea). So it’s not just an issue of money.

      • david

        Ad money is everything. Just look at Samsung. It is unbelievable how they can make so successful handset business on crappy software of Galaxy 1 and 2.

        • Bugbog

          Not so. I remember exactly when Samsung’s star rose ascendant. It was on the Engadget Show in 2011 (when Josh what’s-his-name was still the editor), and they had invited a Samsung US vice-president over and he was smugly stating that Samsung was the No.1 Android OEM, and that soon they would be contending for the no.1 Smartphone Manufacturer crown. And this was months before anything was apparent to end-users like us.

          But lo-and-behold, when paying attention to news broadcasts I started noticing news presenters and TV presenters mentioning the name Samsung with every mention of Apple. That sort of advertising is hard (if not almost impossible to buy). Microsoft on the other hand, in the same medium, only gets mentioned in the negative; i.e. only to state when they haven’t made as much money as Apple, or to state that their mobile products aren’t selling as well as Apple’s or Samsung’s.

          Samsung name: used positively/positively reinforced
          Microsoft’s name: used negatively/negative reinforcement.

          With such bias it’s pretty hard to get consumer mind share. I wouldn’t advocate they stop though, as striving in the consumer medium has a knock-on effect on Enterprise (which they are doing well in).

          That said, it is of note that despite this media bias, in reality the Microsoft brand, as a corporate entity, is still rated second only to Google’s, as the recent survey showed.

    • LexicoRed

      Microsoft has spent a great deal of money on Surface Ads over a billion in us alone, Window Phone ads of another billion, and same with XBoxOne. People are just not interested in the products :(

      • o0MattE0o

        Microsoft has spent a great deal of money in USA, out side USA adverts for Microsoft are none existent…

        Even for Windows Phone where they sell better in Europe Microsoft dose not spend the money in Europe… we still don’t have a Microsoft shop :S

      • Rikkirik

        People are not interested in their products?? How then do you explain that WP is growing at a lot faster rate (3 to 4 times faster rate) than IOS and Android. Globally WP grew 94% in 2013 YOY, while IOS and Android’s (34%) growth were tepid. Look at WP growth rate per continent, look at the figures of 2013 growth of WP.
        Latin America, 148% growth in 2013 YOY
        Middle East and Africa, 758% growth in 2013 YOY
        Asia Pacific and Japan, 105% growth in 2013 YOY
        Central & Eastern Europe, 76% growth in 2013 YOY
        Western Europe, 59% growth in 2013YOY.
        The only place where WP is growing at a one digit pace is the US, growth 9% YOY.
        Do not talk stupidness boy and look at the facts.

        • LexicoRed

          Using growth percentages creates the illusion of success when you viewing you are starting with minuscule numbers to start. With last quarter sales of 8 million sales could triple and still be half of Android.

          So don’t allow yourself to be fooled with the marketing “spin” here is what it really looks like:

          • LexicoRed

            In case first time it did not post:

        • Not_true

          LOL!!!!!!!!! It must be sad being a microsoft fanboy shill spinning for products almost nobody wants.

          • NGM123

            What is more sad is seeing you embarrass yourself publicly.