Analysts at DFC have concluded that due to Microsoft's Xbox One policies "the entire future of the Xbox business in is question" following the console's reveal and the events of E3 last week.
The DFC Forecasts for the Video Games Market Report comments that "Microsoft's overall strategy for entertainment devices is deeply flawed."
In addition, DFC expects to raise its PS4 sales estimates and "further lower" its Xbox One predictions when it releases its August market update.
"So far this has not had a major negative impact on the Xbox business but that is likely to change with the Xbox One launch," DFC's David Cole argued. "Right now the entire future of Microsoft's consumer entertainment business is in question and that is likely to have a major impact on the game industry."
DFC aren't the only ones dismayed at Microsoft's approach to next-gen with veteran tech blogger Paul Thurrott saying they had a "disastrous" E3 and need "fix" Xbox One before it launches.
Former Microsoft executive Peter Molyneux also chimed in commenting that Sony and Microsoft were like "two frat houses" adding that the Xbox media briefing was "very unprofessionally done".
Sony has raised its own forecasts for the PS4 following the positive reaction to its E3 press conference last week. The console is dominating Amazon's pre-order lists and GameStop is also noting strong demand. UK retailer Blockbuster noted that PS4 pre-orders are "through the roof" since Sony's press conference.
The PS4 launch day edition is sold out on Amazon while the Xbox One Day One Edition remains available.
Andrew Houses, CEO of Sony Computer Entertainment, warned last week that due to the extra interest in the PS4 "demand may now outstrip supply" at launch.
Source: MCV.
