Monday, September 12, 2016

Sony Corp (ADR): Why PS4 Pro Gives SNE Stock a HUGE Advantage

The PS4 Pro will hit shelves a full year earlier than Scorpio

Last week, Sony Corp (ADR) (NYSE:SNE) held its PlayStation Meeting and announced that its updated PlayStation 4 gaming console will be officially dubbed the PS4 Pro. Since the console was first reported early this year, gamers and tech enthusiasts alike have referred to it by Sony’s internal codename, Neo.

It has been roughly three years since PlayStation 4 hit the market, and during that time it has gained significant ground over its fiercest rival, Microsoft Corporation’s (NASDAQ:MSFT) Xbox One. The PS4 Pro isn’t intended to replace the base model PlayStation 4, but rather, it will be presented as an optional, enhanced version for hardcore gamers.

What This Means for SNE


According to Forbes, the PS4 Pro console will sell for $399 and it is slated for release in early November, just in time for this year’s holiday shopping season. This should give Sony stock a huge advantage, considering that the PS4’s top competitor, Xbox One, will continue without an update. Project Scorpio, the in-development successor to Xbox One, isn’t slated for release until late 2017, a full year after the PS4 Pro hits the market.

Additionally, while Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) has been barely hanging onto its seat at the game console table, the company’s NX console — which has been shrouded in a fog of (likely intentional) mystery — won’t be available until March of next year, at the earliest.

With nothing new to bring to the shelves this holiday season, Microsoft and Nintendo will have a hard time squaring off against SNE. Expect MSFT’s already-shrinking market share to continue deteriorating and NTDOY’s toehold on its own sliver to weaken further.

Bottom Line for Sony Stock


It’s no secret that new tech is a major draw for holiday shopping, and this is especially true when it comes to game consoles. There hasn’t been a new console for three years now, and considering the specs of the PS4 Pro, it’s likely to generate some pretty hefty revenue, which will translate into a nice bump for SNE.

Even when Nintendo and Microsoft are eventually able to push out their own new consoles, it would take nothing less than revolutionary new features to turn the tides against Sony and the PS4 Pro.

Article originally appeared on InvestorPlace (09/12/2016)