Microsoft Corporation (MSFT), Sony Corporation (ADR) (SNE): Video Game Consoles, The Battle Continues

Which console is better?

Both consoles will have the same processor and same amount of RAM memory. However, the PlayStation 4 will utilize a GDDR5 RAM memory with a bus of 5500 MHz, while the Xbox One will utilize a GDDR3 RAM memory with a bus of 2133 MHz. Although it may not look significant, loading times on PlayStation 4 will be shorter. Regarding the specifications, everything else is the same.

On the innovative aspect, Xbox One just blew it! The console features voice capabilities via a Kinect sensor. It is aimed to work together with your cable TV service and it may replace your digital cable box. In brief, the console was designed to take over your living room. The only thing that cannot be replaced in your living room (yet) by the console is your television. The new Xbox is an all-in-one console that will integrate live TV, games, movies, and web services. There is no doubt that the improved Kinect is an edge in the competition against the PlayStation 4.

So where do I invest?

There is no doubt in my mind that Microsoft’s and Sony’s revenues will increase in the interim. Since I expect both companies to fare well in the near future, you are more than welcomed to pick your poison. However, the Xbox One is not only designed for gamers, but also for non-gaming customers as an all-in-one entertainment console. Microsoft’s revenue should improve significantly.

PlayStation 4 is solely designed as a gaming console. Although its revenue should also increase, I believe the Xbox One will take a significant market share, and thus, Microsoft should be considered as a long position. As a final note, AMD is the company that will benefit the most. Both consoles have incorporated the A8 Jaguar, and its revenue should jump dramatically. AMD should also be considered for a long position.

The article Video Game Consoles: The Battle Continues originally appeared on Fool.com and is written by Robinson Roacho.

Robinson 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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