Microsoft Corporation (MSFT)’s Xbox One Vs. Sony Corp (SNE)’s PS4: Who Is Winning The Sales Battle?

Sony Corp (NYSE:SNE)’s Play Station 4 (PS4) has reigned supremacy in the gaming console with larger sales numbers for quite some time. Microsoft Corporation (NASDAQ:MSFT)’s Xbox One has played a second fiddle, but it has surpassed PS4 for the first time in sales numbers. CNBC’s Morgan Brennan and Allison and Partners President, Jonathan Heit talked on CNBC about this shift in sales numbers in favor of Microsoft Corporation (NASDAQ:MSFT).

Brennan reported that Microsoft Corporation (NASDAQ:MSFT)’s Xbox One has taken the top spot in sales numbers from Sony Corp (NYSE:SNE)’s PS4 in November. Heit feels that bundling of free games and subscription free drop of $50 by Microsoft Corporation (NASDAQ:MSFT) had direct impact on sales figures. He added that Xbox One has surpassed PS4 for the first time, which he thinks as very interesting to watch.

Brennan said that Sony Corp (NYSE:SNE) should cut costs like Microsoft in order to get back in the race in video gaming console space. Heit also feels the same, but he added that there is a limit to cost cuts, post the limits, it might become a slippery slope and hurt Sony Corp (NYSE:SNE) real bad. Brennan added that overall gaming console industry spending has dropped in November 2014, when compared to November 2013.

“It’s really always going to be based on titles. It’s going to be a hits driven business. Grand theft auto and Call of duty doing well, but when you look at that next year of games what are we seeing. But I think what’s interesting is you are seeing a lot of activities on the websites and on the community sites that are all driving digital downloads and a lot of accessory buying, that could be really interesting for the industry going forward,” Heit said.

Heit added that there might a shift in people preferring video games over the movies. He thinks that there are a lot of creating heads working to create many interesting games, which might get a lot of people to like them instantly. He said that video game industry is on the up and will stay that way for some time to come.

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