GameStop Corp. (GME) Likes the PS4 More Than the Xbox One?

Page 2 of 2

What now?

With the latest pre-order numbers, the PS4 seems to be taking over the battle against the Xbox One for now. However, the real test is yet to begin as users have been shifting toward mobile gaming, where many people now play games on their mobile devices, such as smartphones and tablets.

On the other hand, GameStop is clearly a near-term winner as it will benefit from strong pre-order numbers from both the PS4 and the Xbox One. GameStop will also benefit more if the PS4 continues to outsell the Xbox One as Sony Corporation (ADR) (NYSE:SNE) is taking an open policy toward used games. However, in the long-term, the success of GameStop Corp. (NYSE:GME) will depend on how it can adapt to the online ecosystem as well as the mobile trends.

Bottom line

With the launch and strong pre-orders of the PS4 and Xbox One, GameStop, Sony, and Microsoft Corporation (NASDAQ:MSFT) will continue to capture investors’ attentions in the near-term. However, in the long-term, Sony Corporation (ADR) (NYSE:SNE) and Microsoft will have to continue adapting to the online and mobile environment, whereas GameStop Corp. (NYSE:GME) needs a new revenue model to penetrate into the online ecosystem.

Nick Chiu has no position in any stocks mentioned. The Motley Fool owns shares of GameStop Corp. (NYSE:GME) and Microsoft Corporation (NASDAQ:MSFT).

The article GameStop Likes the PS4 More Than the Xbox One? originally appeared on Fool.com.

Nick is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2