While the gaming world obsesses over which next-generation console — Microsoft (MSFT) Xbox One or Sony (SNE) PlayStation 4 — will kill the other, neither company is likely to offer the real advantage for investors. Instead, retailers such as Best Buy (BBY), Wal-Mart Stores (WMT) and Amazon (AMZN) are actually in position to “win” the console wars. The two headliners, meanwhile, will likely suffer from the heavy costs of marketing and subsidizing hardware.
Fans of console gaming have waited an eternity for faster, more-powerful platforms. The Xbox 360 came out in 2005 and the PS 3 a year later. Now customers will finally be able to buy the PlayStation 4 on November 15, starting at $399, and the Xbox One on November 22, for $499.
The number of console-obsessed fans has no doubt shrunk in the interim, thanks to a growing bevy of alternatives, including gaming on PCs and tablets. But there is also no doubt the remaining millions are hankering for new hardware.
Massively expensive marketing