Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Electronic Arts Inc. (EA), Sony Corporation (ADR) (SNE): Microsoft Corporation (MSFT) Makes a Play with Xbox One FIFA Bundle

Roster depth
The move to make FIFA most visible on the One makes sense from more than an Eurocentric perspective. Electronic Arts Inc. (NASDAQ:EA) and Microsoft have shown themselves to be cozy heading into what EA somewhat questionably refers to as “Gen 4.” Electronic Arts Inc. (NASDAQ:EA) is set to publish Titanfall, a Xbox exclusive title from Respawn Entertainment in the first quarter of 2014, and has indicated it will give focus to Xbox One versions of multi-platform titles. Titanfall is being positioned as the defining release for the early stage of the system’s life. Its release might even coincide with the launch of a Kinect-less Xbox One if the initial SKUs are slow to sell.

Electronic Arts Inc. (NASDAQ:EA) also reportedly dropped its Online Pass system in anticipation of Microsoft implementing its own anti-used game and DRM policies. Both companies have, at times, shown an aggressive over-eagerness to dominate the digital space and propel the speed at which games are broadly conceived as a service.

I expect Microsoft to announce partnerships with a number of top-tier studios and high profile developers in the coming months. These types of efforts have undoubtedly been ramped up in light of Xbox One’s initial stumblings. Microsoft is firmly invested in the industry and sees great revenue and potential from consoles as a delivery method for services like Xbox Live. That said, almost every decision it has made since revealing the One has been reactionary. The company is scrambling.

Too early to call the first round?
Microsoft is much more financially stable than Sony Corporation (ADR) (NYSE:SNE). That is, without doubt, its greatest advantage heading into the coming cycle. It has the resources to see its system through a normal life cycle by securing the right games and improving its value proposition. We are likely to see the PlayStation 4 and the Xbox One reach price parity much sooner than initially anticipated. Microsoft will take blows to its ego and sizable pocketbook before it lets the Xbox One bomb.

On the other hand, the company is seriously behind and its actions make it difficult to argue otherwise. Early pre-sale data, online retailer rankings, and rumors that Microsoft’s system is experiencing eSRAM yield problemssuggest that Sony has already won the holiday season. Sony Corporation (ADR) (NYSE:SNE) will produce more systems and ship them to a greater number of countries, and has, thus far, done an impeccable job of positioning the PlayStation 4. Even with more FIFA-esque deals in the pipeline, I expect Xbox One sales to trail its rival throughout Electronic Arts Inc. (NASDAQ:EA)’s Gen 4.

The article Microsoft Makes a Play with Xbox One FIFA Bundle originally appeared on and is written by Keith Noonan.

Keith Noonan has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.