Sony Corporation (ADR) (SNE), Microsoft Corporation (MSFT) – Showdown at E3

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The first day of the much anticipated E3 expo was less of a cordial professional showcase of the future in video games, and more of the first head-to-head battle between Sony Corporation (ADR) (NYSE:SNE) and Microsoft Corporation (NASDAQ:MSFT) over the new consoles since their announcements last month. Stated in my last post on the console wars, both were advertising cutting-edge computing power and amazing graphics, not to mention its other add-ons like TV and movie streaming that serve as an attempt to expand beyond the hardcore gamers. Here, though, despite Microsoft Corporation (NASDAQ:MSFT)’s Xbox One being shown first, Sony counterattacked in a big way, and landed punches that have sent Microsoft Corporation (NASDAQ:MSFT) reeling.

Sony Corporation (ADR) (NYSE:SNE)
PS4 Affordability is Sony’s Left Hook….

By most accounts, Sony Corporation (ADR) (NYSE:SNE) was E3’s big winner on Day 1. Not only did they release the new PS4, which looks like a hybrid between the Xbox One and the PS2 in a good way, but they crafted their presentation to establish differences between themselves and Microsoft Corporation (NASDAQ:MSFT). While Microsoft Corporation (NASDAQ:MSFT) announced on June 10 that their new console would cost $499, Sony Corporation (ADR) (NYSE:SNE) came out the next day and announced that it would be $100 less than the Xbox One. Given Sony Corporation (ADR) (NYSE:SNE)’s advantages in computing power, as well as a devoted gamer base, this gives Sony Corporation (ADR) (NYSE:SNE) an instant leg-up over its competition.

…and a Right Upper Cut with Game Sharing

Another big win for Sony Corporation (ADR) (NYSE:SNE) was announcing that the new system would be open to used games, as well as announcing an expansive library of PS3 games available on Sony’s cloud software. By emphasizing the ease of sharing games, and the fact that it is free to do so, Sony has hit at another difference between the two giants. Microsoft Corporation (NASDAQ:MSFT) developers had stated that used games could be played on the Xbox One, but only if a fee was paid, and the user was frequently on Xbox Live. This has irked a lot of gamers because it makes the cost of playing the newest titles more expensive, in addition to limiting backwards compatibility for Xbox 360 games.

Microsoft Bloodied As Sony Takes the Round

By emphasizing consumer demands first and waiting to show off the PS4 until E3, when the eyes of the gamer universe would be focused on them, Sony delivered two big blows to Microsoft and established the PS4 as the premiere console of the next generation, casting doubts regarding the appeal of the Xbox One to gamers, given the price and technology differences. The PS4 comes out of this as a cheaper and more user-friendly console, a big plus for Sony, and puts Microsoft on the defensive for the rest of the convention, if not the rest of the summer.

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