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Gaming Console Sales Data Is Mostly Noise
From the Buzz & Banter: Microsoft could be closing the gap vs. Sony, but it's just too early to tell.
Michael Comeau    

Market research firm NPD reported February US video game industry sales today, indicating that the Sony (NYSE:SNE) PlayStation 4's lead over Microsoft's (NASDAQ:MSFT) Xbox One diminished a bit.

The numbers were reported in a bit of a funky way: NPD merely said the "Xbox One sold over 90% of what the PS4 sold in terms of unit sales."

But Microsoft itself announced that it sold 258,000 Xbox units, which implies PS4 unit sales of about 286,000-287,000, or possibly a bit lower.

NPD also noted that in dollar terms, Microsoft actually beat out Sony because of the Xbox One's higher price.

So is Microsoft coming back in any major way?

It's far too early say -- just as it's far too early to declare Sony the ultimate victor.

Microsoft should have a solid month or two on the back of Electronic Arts' (NASDAQ:EA) Xbox-exclusive shooter Titanfall, but keep a couple things in mind:

First, Sony has had trouble keeping the PS4 in stock, which can skew sales numbers lower.

Second, there likely aren't many people specifically switching from Sony to Microsoft. At this point in the cycle, the primary buyers are serious gamers, a group that tends to be brand-allegiant.

And if anything, it seems more appealing to switch from Microsoft to Sony rather than the other way around, because the Sony PS4 is much less expensive.

That makes this data point mostly noise, and we don't know if the tide is actually turning for Microsoft.

Of course, when we think longer-term, Sony and Microsoft still face a macro challenge in growing the number of gamers.

The last cycle was artificially large because of the casual game boom led by the Nintendo (OTCMKTS:NTDOY) Wii and Activision's (NASDAQ:ATVI) Guitar Hero franchise. The industry needs similar mass-market phenomena to show real cycle-over-cycle growth.

This less-sexy issue is far more important than who came out on top on one data point.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Gaming Console Sales Data Is Mostly Noise
From the Buzz & Banter: Microsoft could be closing the gap vs. Sony, but it's just too early to tell.
Michael Comeau    

Market research firm NPD reported February US video game industry sales today, indicating that the Sony (NYSE:SNE) PlayStation 4's lead over Microsoft's (NASDAQ:MSFT) Xbox One diminished a bit.

The numbers were reported in a bit of a funky way: NPD merely said the "Xbox One sold over 90% of what the PS4 sold in terms of unit sales."

But Microsoft itself announced that it sold 258,000 Xbox units, which implies PS4 unit sales of about 286,000-287,000, or possibly a bit lower.

NPD also noted that in dollar terms, Microsoft actually beat out Sony because of the Xbox One's higher price.

So is Microsoft coming back in any major way?

It's far too early say -- just as it's far too early to declare Sony the ultimate victor.

Microsoft should have a solid month or two on the back of Electronic Arts' (NASDAQ:EA) Xbox-exclusive shooter Titanfall, but keep a couple things in mind:

First, Sony has had trouble keeping the PS4 in stock, which can skew sales numbers lower.

Second, there likely aren't many people specifically switching from Sony to Microsoft. At this point in the cycle, the primary buyers are serious gamers, a group that tends to be brand-allegiant.

And if anything, it seems more appealing to switch from Microsoft to Sony rather than the other way around, because the Sony PS4 is much less expensive.

That makes this data point mostly noise, and we don't know if the tide is actually turning for Microsoft.

Of course, when we think longer-term, Sony and Microsoft still face a macro challenge in growing the number of gamers.

The last cycle was artificially large because of the casual game boom led by the Nintendo (OTCMKTS:NTDOY) Wii and Activision's (NASDAQ:ATVI) Guitar Hero franchise. The industry needs similar mass-market phenomena to show real cycle-over-cycle growth.

This less-sexy issue is far more important than who came out on top on one data point.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
More From Michael Comeau
Gaming Console Sales Data Is Mostly Noise
From the Buzz & Banter: Microsoft could be closing the gap vs. Sony, but it's just too early to tell.
Michael Comeau    

Market research firm NPD reported February US video game industry sales today, indicating that the Sony (NYSE:SNE) PlayStation 4's lead over Microsoft's (NASDAQ:MSFT) Xbox One diminished a bit.

The numbers were reported in a bit of a funky way: NPD merely said the "Xbox One sold over 90% of what the PS4 sold in terms of unit sales."

But Microsoft itself announced that it sold 258,000 Xbox units, which implies PS4 unit sales of about 286,000-287,000, or possibly a bit lower.

NPD also noted that in dollar terms, Microsoft actually beat out Sony because of the Xbox One's higher price.

So is Microsoft coming back in any major way?

It's far too early say -- just as it's far too early to declare Sony the ultimate victor.

Microsoft should have a solid month or two on the back of Electronic Arts' (NASDAQ:EA) Xbox-exclusive shooter Titanfall, but keep a couple things in mind:

First, Sony has had trouble keeping the PS4 in stock, which can skew sales numbers lower.

Second, there likely aren't many people specifically switching from Sony to Microsoft. At this point in the cycle, the primary buyers are serious gamers, a group that tends to be brand-allegiant.

And if anything, it seems more appealing to switch from Microsoft to Sony rather than the other way around, because the Sony PS4 is much less expensive.

That makes this data point mostly noise, and we don't know if the tide is actually turning for Microsoft.

Of course, when we think longer-term, Sony and Microsoft still face a macro challenge in growing the number of gamers.

The last cycle was artificially large because of the casual game boom led by the Nintendo (OTCMKTS:NTDOY) Wii and Activision's (NASDAQ:ATVI) Guitar Hero franchise. The industry needs similar mass-market phenomena to show real cycle-over-cycle growth.

This less-sexy issue is far more important than who came out on top on one data point.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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