Project Scorpio May Spell Doom For Xbox One S

Microsoft Project ScorpioImage Source: Microsoft Corporation (screenshot)

At the E3 event last week, Microsoft announced Xbox One Slim and Xbox Project Scorpio. The One S console will be 4K-compatible and include the high dynamic range (HDR) color support. On the other hand, the Project Scorpio was hailed as the most powerful gaming console ever made. However, a research firm says Microsoft has effectively killed the Xbox One S even before its release by announcing the Scorpio.

Why Project Scorpio poses threat to Xbox One S

Research firm DFC said in a note to investors that by announcing a more powerful Project Scorpio, Microsoft has done more harm than good to the Xbox One S. The software giant shouldn’t have announced the two at the same time. Sony faces a similar issue with PlayStation Neo, but it made a smart move by not showing the Neo at E3. There is still some mystery around the console, and Sony is not designing a PS 4 Slim.

The Project Scorpio will arrive during the holiday season of 2017, but the Xbox One S is arriving this August. There are a lot of gamers interested in an Xbox One this holiday season. But most of them would now prefer to wait for the more powerful Scorpio. By announcing the Scorpio at E3, Microsoft has effectively asked those gamers to wait until late 2017. The buzz around the Project Scorpio is unlikely to die anytime soon.

Will Microsoft exit the gaming business?

DFC also criticized Microsoft’s mixed messaging. The Redmond-based company plans to bring the future Xbox One games to Windows 10 PCs. When the new games will be available on PC, why should people buy a new console? Even if you want to invest in a console, why buy now when the Scorpio will be here in a year? It may give Sony and Nintendo an advantage over Microsoft.

DFC believes Microsoft may not even have a gaming division by the time Scorpio arrives. Microsoft chief executive Satya Nadella announced the acquisition of LinkedIn exactly when the E3 event was underway. Project Scorpio will have 6 teraflops of GPU, and will support virtual reality.

 

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About the Author

Vikas Shukla
Vikas Shukla has a strong interest in business, finance, and technology. He writes regularly on these topics. - He can be contacted by email at vshukla@valuewalk.com or on Twitter @VikShukla10

17 Comments on "Project Scorpio May Spell Doom For Xbox One S"

  1. Thanks for answering. It looks as if we are going to have a interesting things happening in the next year and a half from all 3 of the console makers.

  2. I’m not massively bothered. We already knew from rumours that it wouldn’t show up at E3 and recent interviews indicate a swift announcement-release gap as expected for a refreshed console.

  3. How come you won’t answer my question, I’m really interested in a PS owners opinion on Sony not releasing any info on the Neo at E3.

  4. Your comment getting taken down is common on articles from pro PS gaming sites. On one article they called someone a “Xbot”. Someone called them a Pony and the comment with pony in it was deleted. So much for free speech.

  5. Somehow my comment got flagged because I said I disagreed with this dude’s post. Well, I’ll say it again…you may be the only one confused. I think MS message is clear. Xbox One S is a 4k player and will replace current Xbox One versions. Scorpio is for 4k resolution and VR. High end gaming will continue to belong to expensive gaming rigs. Xbox will attempt to release games that work on all. Pretty simple, there is really no need to confuse the issue with conjecture and your own opinion.

  6. I don’t agree with your post. I’m not confused. I think, just as Sony is doing, the Scorpio is being geared to 4k console gamers. Not everyone wants to invest in a gaming PC and/or build their own cheap gaming rig. Plug and play is still very desirable for a large number of gamers.

  7. What do you think of the no show of the PS Neo at E3, good or bad decision?

  8. Revolver Ocelot | Jun 23, 2016, 1:47 am at 1:47 am |

    Phil blinked and blundered with his too-early announcement of Scorpio and his blundered messaging of it. Now people don’t know where they are with Scorpio which won’t be out for 18 months and Xbone S is trying to claim a market right now too niche to make a difference. Telling of MS’ confused strategy when it comes to videogames. They should just go full PC and stop wasting everyone’s time.

  9. Wayne Christopher | Jun 22, 2016, 8:06 pm at 8:06 pm |

    This is like saying a new flagship model phone spells doom for budget phones. The products are marketed at two different groups. While not mutually exclusive, they’re still different groups.

  10. Most of the MBA degrees in India are worth nothing. This article proves the amount of research done. This is copy and paste from an article by Sony boy media bloggers.

  11. Um…this guy has a MBA? And he’s tech savy? Honestly, he may need to start writing on other subjects. I don’t mean to insult intelligence, but as other posts have stated, this has been done before in regards to a smaller more streamlined edition. Also should really make the point that Scorpio is being designed for 4k resolution.
    You can think of it another way: Xbox One S is the entry level console, Scorpio is the 4k console beast and PC remains the powerhouse (if you want to invest thousands into a gaming rig). All 3 will allow access into MS gaming ecosystem, just at different price points/capabilities. I guess whatever MS does is a failure to the pundits.

  12. It’s comical to see sony fans keep talking about MS getting out of the game. If anything, there is a higher chance sony does due to bankruptcy.

  13. So if the Scorpio is to be the worlds most powerful console why bother buying a PlayStation either, that and the fact the PS4 has few AAA console exclusives instead Sony seem to be going down the Kinect 1 road and investing most money in their expensive VR add on and judging by all the games seen on it so far a lot of shovelware is incoming.

    If the VR headset sells anywhere near as good as Kinect 1 did Sony are going to have the same problem as MS did that being they will have to support the VR novelty AND the core PS4 gamers and as MS proved it’s almost unaffordable to do both.

  14. Rubbish article there are many reasons to go for the Xbox S especially as it’s 4k capabilities alone would cost you £400-600 to buy a standalone player.

    Sony didn’t announce there console probably for to reasons, because it’s specs are no where near as powerful as Scorpio and if it’s true that the new model will run VR better then that wasn’t going to go down well With current PS4 model owners at E3.
    I have no doubt thy will announce it “After” the VR headset novelty is released.

    Why on earth would you ever think MS will ever pull out of the console market that is just plain stupid.
    Even the current Xbox One is MILLIONS ahead of where the PS3 was this time last gen and Sony had also posted a 3 BILLION loss at that time ! So if Sony didn’t leave the market why would you ever think MS will.
    Do you somehow think MS are not selling a lot of games, addons and Xbox Live just because the PS4 is selling better !

  15. Seriously? I’m baffled by the lack of understanding most of todays’ “research firms” and “journalists” have of the gaming market. The Xbox One S is replacing the Xbox One(JUST as the Xbox 360 slim eventually replaced the Xbox 360). The Scorpio is a high end native 4K beast of a machine(for those interested in 4k gaming and VR). Just as the PS4 Neo is an alternative to the PS4 for those interested in introductory VR and 4K video surely? The fact that all the Xbox One games will be forward and backwards compatible is amazing and only offers us, the gamers, more choice towards price/taste and preference! Do you really think MS does not have it’s own multi million dollar research division……?LOL!

  16. what a joke of an article. You do realize t many will buy the S and just trade it in when scorpio drops.
    Also, it’s no secret scorpio is going to cost much more than the s, so the people worried about cost are not going to wait.

    Sure there are some who will wait for the scorpio instead of the S, but that doesn’t mean the S is doomed. Preorders have been pretty high from what I understand.

    As for this business of MS dropping out of the console industry, that’s been rumored for sometime now, yet they keep releasing new gens of machines.

  17. No it won’t, I’m buying both when they are released. Cheap 4K player is enough for people to get excited, it’s the exact same thing when the PS3 was released with a cheap blu ray player

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