Tokyo / Chicago / Stockholm (Reuters) – Think Michelangelo vs Dance. Muhammad Ali and J. Fra Frasier. Batman vs. Superman. Another epic contest reunites when Sony and Microsoft go head-to-head with the next generation of their blockbuster video-game consoles.
Sony, whose PlayStation 5 (PS5) carries on MicroS.ft’s Xbox Series X and Series S, is believed to be in a pole position to earn an epidemic boom in consumer spending in the consumer 150 billion video game industry.
According to industry experts, Japanese companies have sold 100 million PS4s, winning the battle of the previous pay generation – a huge fan base and extensive fan base of sports.
“People with Xbox tend to buy a new Xbox, while those with a PlayStation tend to buy a new PlayStation,” said Michael Patcher, an analyst at Wedbush Securities.
Yet the industry is changing and cloud gaming is on the rise, allowing games to flow without heavy hardware. Analysts say sales of the console could be halted in the coming years, which could turn Microsoft profitable.
The two consoles – the first to be introduced by both companies for seven years – will be eagerly awaited; The Xbox will go on sale on Tuesday, and the PS5 will hit major markets two days later, priced at around $ 300 to $ 500.
The race to pre-order the devices actually started weeks ago, yet blink and you missed out. Pre-orders of Sony’s PS5 on many retail sites are sold out within minutes, for example, disappointing fans.
Julian Mercado, 17, managed to reserve a PS5 from Walmart.com WMTN A few minutes after the pre-order started on September 16, knowing that it would come against the gamers’ side.
“It’s just like shopping on Black Friday,” said the Dallas high school student, who has been playing video games with his dad since he was five. “The sooner you show up, the better. You will show up too late, you will leave nothing. ”
Playing in an epidemic
Sony 6758.T This may be the edge, but the stake is higher for the Japanese company. His gaming business is his biggest cash cow; In fiscal year 2019, the division, which includes hardware, software, software and services, accounted for about a quarter of its $ 77 billion group sales and about 30% of its operating operating profit of billion 7.9 billion.
Micro .ft MSFTO Gaming results don’t break, though it’s a smaller part of its business than Sony. It also does not disclose hardware sales but is estimated to have sold 50 million units by current Xbox One analysts.
For another large hardware player, Nintendo from Japan 7974.T, Sticking to the console will pay off with its hiking forecast last week following its elevated demand for switches.
The PS5 will retail at 4 9,499.99 or 39 9,399.99 for the digital-only version, while the Xbox Series X sells for $ 499.99 and the lower-spec Series S for 29 299.99.
According to media research firm Empire, combined sales are expected to be higher than the previous Pay Generation, with the new Xbox forecasting to sell nearly 5 million PS5s this year, against 9.us million.
See graphic of PlayStation vs Xbox sales forecast tmsnrt.rs/3l3Rpe3: tmsnrt.rs/3l3Rpe3
“The epidemic is expected to transform the U.S. holiday shopping season,” said Jason Benowitz, senior portfolio manager at Roosevelt Investment Group. “Playing from home has become a way for some to socialize safely.”
The depth of Sony’s games is supported by in-house studios behind exclusions such as “Marvel’s Spider-Man: Miles Morales”. Game experts say the new Xbox, by contrast, will lack the title of killer launcher, with its main “Halo” series being pushed forward next year due to recent epidemic developments.
However, cloud gaming growth has outpaced U.S. growth. The software giant could benefit in the years to come. Although both companies have moved on to provide services, Micro .ft has been more aggressive.
Its Xbox Game Pass subscription service has grown rapidly; It offers over 100 titles, including brand-new games, and has over 15 million users. Sony was reluctant to make its most popular titles available on services like the PlayStation Now, fearing this could reward sales of these big-budget games.
‘Supply Demand UT Taste Strips’
According to industry experts, the epidemic, while boosting some demand, is also hampering the production of Sony and Micro .ft, which are set to pull in 2021.
“Demand will outpace supply so there will be some people who won’t grab a console when they want to,” said Pierce Harding-Rolls, director of emerald sports research.
Sony has announced that retailers like Walmart, Best Buy BBY.N. And targets TGT.N The PS5 will be sold exclusively online when it launches on November 12 to prevent people from camping outside stores during the epidemic.
Walmart will sell a new console worth નવા 1.1 billion by the end of January, according to Wedbush. U.S. with that game stop. Dominates the market GME.NWith about 0% of each share, sales of the console on Target and Best Buy account for about 1% of sales, the research firm said.
Target said it is working closely with its vendors to secure adequate inventory. Some shoppers who kept the console told Reuters that Target said they could receive them a few days after the launch date.
Walmart said it would start selling the new console at launch but declined to comment on whether there would be enough stock to meet demand. Best Buy declined to comment on whether it would be able to meet the demand, while Gamestep did not respond to requests for comment.
Danthoni Thiklin, a casino attendant who reserved his PS5 on Target.com in September, has a preference for getting his hands on the console in the early days.
The 25-year-old gave some advice.
He said, “Set all your card information so all you have to do is just click,” he said. “Don’t hesitate. Keep up the speed. “
Reporting by Sam Nuci in Tokyo, Richa Naidu in Chicago and Supantha Mukherjee in Stockholm; Additional reporting by Uday Sampath Kumar; Edited by Kenneth Lee and Praveen Char
.
