No Quit in Xbox Rivals
Microsoft's (MSFT) move to roll out the new Xbox 360 game console Tuesday, ahead of the competition, has drawn the company loads of press, and potentially sizable sales.
But don't look for the company's rivals to concede defeat.
Sony (SNE), for instance, has dominated the last two console cycles, and many analysts think the company's PlayStation 3, due out next year, will be more than a match for the Xbox 360.
And although few expect Nintendo's Revolution to be the champ this time around, the company has a proven track record in the game industry, and many analysts expect it to once again carve out a substantial niche when it launches next year.(TheStreet.com also looked this week at the perception of Microsoft's ballyhooed rollout; how far the company will make it into consumers' living rooms; and what the new games and new game machines mean for investors.) "This is still Sony's market to lose," says Michael Goodman, who covers the video game industry as a senior analyst for the Yankee Group. "When the dust settles in three years or so, Sony will be back up on top. But it will be a close race." How the race turns out will affect the three companies in salient ways. For Microsoft, its also-ran status in the current console cycle has been yielding losses that have weighed on its bottom line over the past five years. In contrast, the PlayStation division has been one of the few bright spots for Sony in recent years, as it has lost ground in digital music players and other consumer electronics markets. Nintendo, however, risks becoming a perpetual third player in a market that has seldom had room for even two. With its launch of the Xbox 360, Microsoft is attempting to build on -- and learn from the mistakes of -- the original Xbox. In addition to being first to market, Microsoft is touting the device's high-definition graphics and sophisticated online game system.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV