Microsoft Corporation (MSFT), Sony Corporation (ADR) (SNE): Video Game Firms Becoming User-Friendly

Microsoft Corporation (NASDAQ:MSFT)’s business holds a lot of stake in Xbox sales. According company figures, full year Xbox 360 sales ending in June were $10.2 billion. Overall revenues at the company for the same period was $77.8 billion. That represents 13% of revenue, playing a major role in share price.

Sony faces tougher competition

Nintendo’s plan to increase efforts to attract gamers to its console should be somewhat discomforting for both Sony Corporation (ADR) (NYSE:SNE) and Microsoft Corporation (NASDAQ:MSFT). Sony Corporation (ADR) (NYSE:SNE) is further challenged by Microsoft’s new-found commitment to accommodate users by giving them more freedom. However, Sony is used to the competition, as sales of the Sony PlayStation 3 are almost identical to sales of the Microsoft Xbox 360. Sony Corporation (ADR) (NYSE:SNE) will need every inch it can get in order to come out on top. Sony Corporation (ADR) (NYSE:SNE) looks to be fairly valued right now, with a price-to-book ratio of 0.9, but expect a price hike once the holiday sales numbers of the PS4 roll in.

Listening to consumers will help

In the end, it is the ease of using each console and the freedom each manufacturer gives to the gamers that will decide which company comes out on top. It will also boil down to the quality of each console and the superiority of each game offered on the devices. Both Nintendo and Microsoft Corporation (NASDAQ:MSFT) improved their outlooks by working with the users, and we will see who comes out on top as the sales start rolling in.

The article Video Game Firms Becoming User-Friendly originally appeared on Fool.com and is written by Phillip Woolgar.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Nintendo. The Motley Fool owns shares of Microsoft. Phillip 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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