Could Sony Corporation (ADR) (SNE)’s PS4 Really Destroy Microsoft Corporation (MSFT)’s Xbox One?

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Aside from this major pricing advantage, Sony also humiliated Microsoft at the E3 event on its policies. Microsoft’s policies had been unclear from the start and after clearing up its policies – especially regarding second-hand or used games – a lot of fans were left disappointed. Sony, on the other hand, stated its clear policies on the ease of sharing and using second-hand games without any restrictions.

The reason why Nintendo’s recent console has not performed well is because of the lack of titles. Nintendo has a very loyal fan base and the Nintendo Wii U will pick up pace by the end of 2013; however, if the company is not able to release quality gaming titles, specially key first-party titles. Apart from that, Wii U’s relatively unique software might also attract some consumers. Despite poor sales, Nintendo’s communications director Charlie Scibetta believes that the Wii U is in a similar position as the 3DS, when it first came out. He believes that, like the 3DS, the Wii U started slow but will pick up pace in the upcoming months, especially after software updates.

Conclusion

Microsoft has done so well in the gaming market and has become one of the biggest brand names in the industry. The company played catch-up with Sony, but as soon as things started looking good for Microsoft’s gaming division, its E3 press conference made things worse. Just by looking at what happened at the event, it should be clear that Sony is in a very good position to dominate Microsoft in the gaming market.

For Nintendo, on the other hand, things are still not clear as the company is relying heavily on the Wii U’s future software updates and upcoming gaming titles. Nintendo’s incredible fan base will definitely boost its sales in the near future; however, if the company is not able to satisfy consumers with software updates or if it lacks quality gaming titles, then Nintendo’s Wii U will face a hard time in this competitive gaming market. That being said, if Nintendo drops the price of Wii U before the end of the year, then it could outsell competitors as Wii U’s price drop would mean a very good package for the price.

Sony, after making massive improvements under the new CEO, has already improved several of its divisions and looks set to become a leader in the gaming market, once again. Microsoft, on the other hand, is still struggling and just when it is worried about the Windows 8 OS and the decline of the PC market, it made terrible decisions in the gaming division.

The article Could Sony’s PS4 Really Destroy Microsoft’s Xbox One? originally appeared on Fool.com and is written by Yasir Idrees.

Yasir Idrees has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Yasir is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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