Thank you very much;
you're only a step away from
downloading your reports.
Sony PlayStation 4 Wins Another Battle, but the War Is Just Beginning
Sony's video-game console outsold the Microsoft Xbox One in March.
Michael Comeau    

Sony (NYSE:SNE) is still looking good in the next-generation video-game console war.

It scored an important victory in March, with market research firm NPD reporting that Sony's PlayStation 4 console outsold Microsoft's (NASDAQ:MSFT) Xbox One in the US for the third straight month.

Electronic Arts's (NASDAQ:EA) Titanfall, a very high-profile Xbox One exclusive, failed to put Microsoft in the lead against Sony. Titanfall was the best-selling game of the month, beating out Sony exclusive Infamous Second Son, but the fact that it failed to move the hardware needle in terms of market share is notable.

In terms of the big-picture perspective, late last week Sony said that PlayStation 4 sales hit 7 million units worldwide, while Microsoft announced it crossed the 5-million-unit threshold.

However, while Sony is currently in the driver's seat, the lead won't necessarily last. Microsoft could instantly make up a lot of ground by instituting a price cut (an issue flagged last June) and by improving its global distribution base, which is still much smaller than Sony's

Last generation, the PlayStation 3 was initially trounced by the Xbox 360 (and one reason was price), but both ultimately ended up with sales in the neighborhood of 80 million units. Of course, both were beaten by the Nintendo (OTCMKTS:NTDOY) Wii in terms of hardware unit sales. That would imply natural early customer bases (mostly serious gamers) of roughly equivalent size.

It's fair to say that Sony has executed a bit better out of the block and was very smart in terms of pricing, but ignore the sensationalist headlines floating around -- it will take some time to figure out the winner in this war.

Of course, the bigger question is: How well will industry sales perform once the early adopters are locked in?

The last cycle got a huge boost from the Wii and the music game boom. It remains to be seen whether there will be applications with similar mainstream crossover appeal this time around.

Twitter: @MichaelComeau

This article was originally posted on the Buzz & Banter, where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+
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.
Sony PlayStation 4 Wins Another Battle, but the War Is Just Beginning
Sony's video-game console outsold the Microsoft Xbox One in March.
Michael Comeau    

Sony (NYSE:SNE) is still looking good in the next-generation video-game console war.

It scored an important victory in March, with market research firm NPD reporting that Sony's PlayStation 4 console outsold Microsoft's (NASDAQ:MSFT) Xbox One in the US for the third straight month.

Electronic Arts's (NASDAQ:EA) Titanfall, a very high-profile Xbox One exclusive, failed to put Microsoft in the lead against Sony. Titanfall was the best-selling game of the month, beating out Sony exclusive Infamous Second Son, but the fact that it failed to move the hardware needle in terms of market share is notable.

In terms of the big-picture perspective, late last week Sony said that PlayStation 4 sales hit 7 million units worldwide, while Microsoft announced it crossed the 5-million-unit threshold.

However, while Sony is currently in the driver's seat, the lead won't necessarily last. Microsoft could instantly make up a lot of ground by instituting a price cut (an issue flagged last June) and by improving its global distribution base, which is still much smaller than Sony's

Last generation, the PlayStation 3 was initially trounced by the Xbox 360 (and one reason was price), but both ultimately ended up with sales in the neighborhood of 80 million units. Of course, both were beaten by the Nintendo (OTCMKTS:NTDOY) Wii in terms of hardware unit sales. That would imply natural early customer bases (mostly serious gamers) of roughly equivalent size.

It's fair to say that Sony has executed a bit better out of the block and was very smart in terms of pricing, but ignore the sensationalist headlines floating around -- it will take some time to figure out the winner in this war.

Of course, the bigger question is: How well will industry sales perform once the early adopters are locked in?

The last cycle got a huge boost from the Wii and the music game boom. It remains to be seen whether there will be applications with similar mainstream crossover appeal this time around.

Twitter: @MichaelComeau

This article was originally posted on the Buzz & Banter, where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+
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
Daily Recap
Sony PlayStation 4 Wins Another Battle, but the War Is Just Beginning
Sony's video-game console outsold the Microsoft Xbox One in March.
Michael Comeau    

Sony (NYSE:SNE) is still looking good in the next-generation video-game console war.

It scored an important victory in March, with market research firm NPD reporting that Sony's PlayStation 4 console outsold Microsoft's (NASDAQ:MSFT) Xbox One in the US for the third straight month.

Electronic Arts's (NASDAQ:EA) Titanfall, a very high-profile Xbox One exclusive, failed to put Microsoft in the lead against Sony. Titanfall was the best-selling game of the month, beating out Sony exclusive Infamous Second Son, but the fact that it failed to move the hardware needle in terms of market share is notable.

In terms of the big-picture perspective, late last week Sony said that PlayStation 4 sales hit 7 million units worldwide, while Microsoft announced it crossed the 5-million-unit threshold.

However, while Sony is currently in the driver's seat, the lead won't necessarily last. Microsoft could instantly make up a lot of ground by instituting a price cut (an issue flagged last June) and by improving its global distribution base, which is still much smaller than Sony's

Last generation, the PlayStation 3 was initially trounced by the Xbox 360 (and one reason was price), but both ultimately ended up with sales in the neighborhood of 80 million units. Of course, both were beaten by the Nintendo (OTCMKTS:NTDOY) Wii in terms of hardware unit sales. That would imply natural early customer bases (mostly serious gamers) of roughly equivalent size.

It's fair to say that Sony has executed a bit better out of the block and was very smart in terms of pricing, but ignore the sensationalist headlines floating around -- it will take some time to figure out the winner in this war.

Of course, the bigger question is: How well will industry sales perform once the early adopters are locked in?

The last cycle got a huge boost from the Wii and the music game boom. It remains to be seen whether there will be applications with similar mainstream crossover appeal this time around.

Twitter: @MichaelComeau

This article was originally posted on the Buzz & Banter, where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+
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.
EDITOR'S PICKS
 
WHAT'S POPULAR