Xbox One vs. PS4: Which will reign as the streaming TV hub of the future?

E3 2013 is done. We’ve seen the consoles. We’ve seen the games. We’ve seen Microsoft stumble. We’ve seen Sony gloat. We’ve seen Microsoft flip-flop on the majority of the arguably controversial policies that riled up legions of potential early adopters.

Now it’s time to make a decision about which console we are going to purchase when November 2013 rolls around.

However, this simply isn’t a decision about games. The next generation of video game consoles will have an impact on the evolution of our home theaters. While both the Xbox 360 and PlayStation 3 have made excellent home theater components in addition to gaming consoles over the last several years, both Microsoft and Sony are still grappling for consumers that want to watch cable television and Blu-ray discs, stream video on services like Netflix and Hulu Plus, rent the latest movies at a premium cost, access supplemental content on second screens and potentially watch 4K / Ultra HD content after upgrading their television in the next five years.

We’ve put together another showdown for you, designed to break down all these important elements and help you figure out which console will fit your home theater best this year.

Watching (Premium) Television: Xbox One

Microsoft has gone to great lengths to work with premium cable and satellite providers to create a seamless method of watching live television programming through the Xbox One user interface when utilizing HDMI pass-through. Demonstrated during the E3 press conference, switching between various applications, games and television content took mere seconds. Within this interface, you will find a custom channel guide, the ability to build a personal guide of channels and shows as well as the ability to pause live television.

However, if you are a cord cutter, this feature isn’t going to help you. It’s limited to devices that pass live television programming through HDMI, thus the antenna picking free over-the-air HD programming doesn’t qualify.

In addition, there’s no DVR functionality included on the Xbox One or access to on-demand content provided by the premium service provider. If you regularly record shows to watch at a later time, you will have to flip back over to the cable or satellite box to watch that programming.

With the Xbox One, Microsoft won’t be able to replace the traditional cable or satellite box, but perhaps improve on the experience of watching live television. Conceptually, Microsoft wants the Xbox One to be the first thing you turn on each day when sitting down in your home theater. Comparatively, Sony simply isn’t making such an aggressive push into the television space. So if you are a premium television subscriber, there will be additional value in an investment in the Xbox One over the PlayStation 4.

Blu-ray & DVD: Tie

During the previous generation of consoles, Sony had a step up on Microsoft with the inclusion of a Blu-ray player within the PlayStation 3. Microsoft attempted to respond with the ill-fated HD-DVD add-on drive for the Xbox 360 that fizzled out after Blu-ray won the format wars.

However, this isn’t an issue anymore. Both the PlayStation 4 and Xbox One will include disc drives capable of playing Blu-ray discs as well as standard DVD and music compact discs. In addition, both drives will be completely free of DRM when it comes to games and movies. If you like to purchase movies or television shows on Blu-ray from another country, both consoles should have no problem playing the discs.

4K / Ultra HD: Wrapped in Uncertainty

Sony has made no mystery of the fact that the company is investing in the future of 4K / Ultra HD televisions and content. At CES 2013, all mention of 3DTV simply disappeared in favor of 4K televisions. If I were a betting man, I’d wager Sony wants to crack into the 4K market significantly more than Microsoft.

However, the technology is far to young for anyone to expect 4K content right out of the gate. One glaring issue is that Blu-ray discs are simply running out of space. For instance, Sony’s “Remastered in 4K” films (1080p films created from 4K Masters) are being released on multiple discs (movie on one disc, features on another) to allow the maximum amount of space for the film.

Even if Sony and Microsoft include BDXL drives (capable of playing 128GB discs over the standard 50GB discs), 4K movies, especially anything in 3D, could still end up requiring too much space.

There’s also an issue with HDMI. In all likelihood, both the Xbox One and PlayStation 4 will include the current standard, HDMI 1.4 outputs. While HDMI 1.4 supports 3840 x 2160 output at 24p or 30p, HDMI 2.0 will likely be required for anything at a higher framerate or increased resolution. In addition, it will be an absolute must for 3D 4K content.

Regarding downloading 4K content as a premium rental, it’s going to require significant hard drive space on either console. Both consoles sport a 500GB hard drive, definitely minuscule when it comes to 4K content. Streaming will also require significant bandwidth, somewhere between two to four times a 1080p stream depending on the codec. If you are already having trouble streaming a 1080p movie off a service like Vudu, 4K is going to get even worse.

Regarding games, native 4K gaming simply isn’t being pursued by Sony. Microsoft has stated that they will have the option of native 4K gaming, but not if it will be pursued. At minimum, it’s likely both Sony and Microsoft will offer a hardware upscaling option for anyone that purchases a 4K television.

Streaming Services: Slight Edge to the Xbox One

While both Sony and Microsoft heavily competed to bring in the major streaming services onto the Xbox 360 and PlayStation 3 over the last five years, there are few services left that aren’t available on both consoles. Neither Microsoft or Sony have discussed the selection of available streaming applications in significant detail, but it’s likely all the major players (Hulu Plus, Netflix, Vudu, Amazon Video on Demand) will be available to users.

At most, Microsoft has a slight edge in this category, if you have a premium television subscription and want to access apps like ESPN or HBO GO. The Xbox One should also provide access to YouTube and Vimeo, both absent from the PlayStation 4. However, it’s likely that Sony will pursue these relationships as well, even if the company isn’t focused on television content then using the PlayStation 4. For instance, Sony announced recently a relationship with Redbox Instant to match Microsoft’s inclusion of that application on the Xbox 360. If you are interested in the selection of streaming applications available on both consoles, you can find lists for both consoles on IGN here: Xbox One / PlayStation 4.

Stored Media: Likely Tie

It’s highly unlikely that Microsoft or Sony kill media-friendly features like DLNA compliance at the launch of the Xbox One and PlayStation 4. At minimum, both devices should be able to play media that can currently be accessed on the Xbox 360 and PlayStation 3. Does that mean it’s even worth upgrading to the new consoles? Potentially, yes. Sony and Microsoft could improve the interface for accessing content on your home’s network. In addition, the speed at which stored content is launched through one of the new consoles could potentially increase due to the upgraded hardware inside both consoles.

Second Screen: Xbox One

While Sony will be releasing a second screen mobile application for iOS and Android devices with several features on the gaming side, everything we’ve seen regarding Xbox SmartGlass looks like it will have a greater impact on your home theater experience. For instance, you can look up details about a television show or movie such as a synopsis, ratings or the list of actors and actresses. You can also peruse other content in order to find something else to watch without disturbing the on-going video on the screen.

While the success of SmartGlass in the home theater space is dependent on third party services making their content compatible with the interface, Microsoft already provides SmartGlass compatibility with the HBO, ESPN, NBA Game Time and UFC applications. You can see the full lineup of compatible applications here. It’s possible that Sony will release similar features in the PlayStation 4 second screen application, but the company has been tight-lipped on details around development.

Advanced Controls: Xbox One

Clearly, additional control options like gesture and voice controls can be a blessing or a curse depending on the household. However, if this is something that could be useful to the members of your household, Microsoft has demonstrated this ability repeatedly at E3 when utilizing the included Kinect. Will it be perfect? Highly unlikely. But simply providing that highly integrated option to users is more than Sony is doing over on the PlayStation 4.

Cost: PlayStation 4

Looking beyond the obvious $100 price difference in the two consoles, Microsoft is continuing to force consumers into purchasing a Xbox Live Gold subscription in order to get access to streaming services like Netflix, Hulu Plus, Vudu, etc. While Sony will be requiring a mandatory PlayStation Plus subscription to access online multiplayer on the PlayStation 4, users will not be required for accessing streaming video services or other entertainment applications. If you have no interest in online multiplayer, it’s clear that the PlayStation 4 is the less expensive solution.

Odd Man Out: What about the Wii U?

Opposite from Microsoft and Sony, Nintendo isn’t targeting the home theater consumer aggressively. While the Wii U offers 1080p video compatibility and access to Netflix, Hulu Plus and Amazon Video on Demand, that’s pretty much it.

There’s no integration with live television services, the device cannot play Blu-ray movies, 4K compatibility is highly unlikely, Nintendo doesn’t have an internal service to offer access to premium movie and television purchases and the company hasn’t provided a second screen option for applications in the home theater space, something that the Wii U controller would be perfect for. Regarding use in the home theater, the only advantage Nintendo has is related to price, however you will get significantly more bang for your buck with the Xbox One or PlayStation 4.

But what do I buy? The PS4 or the Xbox One?

One detail that often gets glossed over in favor of showcasing games and new features is the speed at which the new user interface on each console will launch content and switch between various applications. One of my biggest pet peeves with the current generation of consoles is that it takes significantly longer to go from sitting down on my couch to watching a television show on my Xbox 360 or PS3 than it does on my Roku 3. If the demonstration of the Xbox One media interface showed anything, it’s that Microsoft has significantly increased the speed at which the UI reacts. It’s highly likely that the PlayStation 4 interface will accomplish the same feat due to the upgraded specs of the new system.

Regarding a purchase decision, it really depends on the premium services you are currently spending money on each month. From the perspective of someone that pays for premium television service each month, the Xbox One is going to offer significantly more opportunity for home theater integration than the PlayStation 4. If you are interested in early adoption of the 4K format, the PlayStation 4 is probably a more solid bet than the Xbox One, if only for Sony’s vested interest in selling 4K televisions.