This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hype War Goes to Xbox, but PSP Should Thrive

Sony's (SNE - Get Report) PlayStation Portable, which looked destined for greatness when it arrived nine months ago, finds itself lost in the hype surrounding Microsoft's (MSFT - Get Report) Xbox 360.

But Sony shouldn't hit the panic button just yet, analysts say.

"The PSP is not dead by any means," says James Lin, an analyst for the Simba Group, an industry research firm. "It's just been slow out of the gate."

Sony launched the PSP in the U.S. to great acclaim earlier this year and sold more than half a million units in the first two days. The device marked the first effort by Sony, the leader in the console game industry for the last 10 years with its PlayStation and PlayStation 2 systems, to enter the portable game market, which has been dominated by Nintendo. Some analysts even believed that the PSP, which can play music and movies and surf the Web through a built-in wireless transmitter, could be a wider threat, potentially eating into sales of Apple's popular iPod digital music devices and other portable multimedia devices.

Right now, the PSP's threat to Nintendo -- much less to Apple -- remains hypothetical. Sales of the PSP are disappointing thus far, particularly this holiday season. Through the end of October, Sony had sold just 1.6 million of the devices after the first days' sales flurry.

Last week, in an earnings-related conference call, GameStop (GME) CEO Richard Fontaine said that PSP sales this holiday season have been "somewhat slower than anticipated."

"The truth is we would have expected it to have more momentum than it has," Fontaine said.

When Amazon.com (AMZN - Get Report) published its list of top-selling items in November, the PSP was conspicuously absent. Only recently did a PSP package crack Amazon's list of top 10 best-selling video game products; it has yet to show up as a leader in the broader electronics category.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMZN $512.89 -0.99%
MSFT $43.52 -0.93%
SNE $25.78 -0.35%
AAPL $112.76 -0.47%
FB $89.43 -1.74%

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs