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Microsoft Corporation (NASDAQ:MSFT) Xbox One Hurt By Sony Corp (ADR)(NYSE:SNE)’s 10 Million Sales Of PS4

Boston, MA 08/14/2014 (wallstreetpr) – In a blow to Microsoft Corporation (NASDAQ:MSFT)’s Xbox One, Sony Corp (ADR)(NYSE:SNE)’s PlayStation 4 (PS4) devices sold more than 10 million. Making an announcement at the recently ongoing major gaming conference in Cologne, Germany; Gamescom, the Europe CEO of Sony Computer Entertainment, Jim Ryan unveiled this fact in the midst of ‘survival of the fittest’ battle of dominance among mobile gaming and consoles industry. Xbox One, in the meanwhile, has managed to sell just half of PS4, i.e. 5 million.

The Error of Strategy

Analysts believe that this happened because of Microsoft Corporation (NASDAQ:MSFT)’s error of strategy. Microsoft, which had been fighting the uphill battle ever since the release of Xbox One consoles in 13 different markets, which include the U.S. and U.K., has gone wrong in terms of pricing.

Microsoft priced Xbox One approximately $100costlier than the Sony’s PS4, citing that it is packed with Kinect, a special camera which enables users to have more fun while playing interactive games. Although, Microsoft scrapped the price a bit in order to revive the fortunes of its console, but it is still not enough to match PS4.

In an interview with CNBC, a technology analyst, Sam Gee opined that Xbox One suffered mainly because of negative publicity.

String of Announcements to Bounce Back

In order to bounce back in this fight, Microsoft Corporation (NASDAQ:MSFT) is likely to shoot strings of announcements in Gamescom event to reinforce its position. Xbox One is scheduled to be released in 26 other countries, which means that there are still chances for Microsoft to make a comeback in terms of sales.

Also, it is important to note that Microsoft is waiting for Christmas period which is approaching soon. Quite interestingly, cheaper PS4 by Sony and some really engaging announcements for Xbox One by Microsoft is likely to make this clash of tycoons very interesting. It is expected that the Christmas season would be highly competitive for both Sony and Microsoft’s consoles.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.

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