Did Sony Corporation (ADR) (SNE) Just Save GameStop Corp. (GME) Stock?

Microsoft’s policies will certainly crimp GameStop’s sales of Xbox One games, but Sony chalked another point in the retailer’s favor on Monday. Microsoft and Sony are locked in a tight battle for next-gen sales, and Sony Corporation (ADR) (NYSE:SNE)’s announcement that it will price the PS4 at $399 — a full $100 below the Xbox One’s price — will win over a fair share of consumers. Any lead the PS4 gains over the Xbox One will indirectly help GameStop’s own sales.

GameStop’s not safe yet
Does that make GameStop a safe stock? Hardly. The company will still face major pressure from Microsoft Corporation (NASDAQ:MSFT)’s attempt to pivot away from used games. GameStop Corp. (NYSE:GME)’s sales will see a boost from new console sales late in the year, but that excitement will die down as the market becomes more familiar with the PS4 and the Xbox One over the long-term.

Additionally, the company’s been unable to turn to mobile and digital sales as a pillar of its financial foundation. While such sales grew more than 21% last year, they still sharply trail game software and hardware sales as a portion of the company’s total revenue. Even if GameStop manages to continue driving its mobile and digital business higher, it’s hard to see that overcoming potential losses from Microsoft’s push against used games.

That’s all assuming Sony Corporation (ADR) (NYSE:SNE) doesn’t release any restrictions on used games between now and the release of its PS4. If it does, this stock’s in even deeper trouble.

For now, Sony’s E3 announcement breathed a little life back into this stock, but GameStop Corp. (NYSE:GME)’s future isn’t secure just yet. The stock’s recent run-up doesn’t look sustainable with a cloudy future before it, and the company will have to count on Sony sticking to its commitment to used games. If you’re looking to invest in the video game market, GameStop is anything but a risk-free pick.

The article Did Sony Just Save GameStop Stock? originally appeared on Fool.com.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Nintendo Co., Ltd (PINK:NTDOY). The Motley Fool owns shares of GameStop Corp. (NYSE:GME) and Microsoft Corporation (NASDAQ:MSFT).

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