Both Xbox One and PlayStation 4 from Microsoft and Sony respectively are probably two of the hottest properties in the gaming industry at the moment with fans already queuing up (via pre-orders of course) to book their own consoles. While we are still awaiting a solid release date, a few feel that Xbox One may have a slight advantage over PS4 on the launch day - whenever that is.
Baird analyst Colin Sebastian recently stated in an investor's note that their supply chain checks show that Microsoft's Xbox One has an advantage on the PS4, and will manage to outsell it at launch. He stated that at the current rate at which Microsoft's new gaming console is gaining popularity, the One, which has done quite well in recovering from early problems, could topple over PS4's popularity and cater to more audience.
"Despite losing the headline battle at E3, Microsoft's Xbox One appears to be regaining some momentum, in part due to the used and online policy tweaks. Importantly, our supply chain checks suggest Microsoft may have the benefit of a 2-3x unit advantage at launch compared to Sony's PS4," Mr. Sebastian stated.
Sebastian also expects that both the systems will run into supply shortages at launch, while also adding that the $100 price gap between the Xbox One and PS4 won't matter that much in the launch window "as the core audience of early adopters are less likely to balk at paying a premium for the system they want. Even so, Microsoft is 'working with channel partners to lessen the gap, Sebastian noted," as scripted by Gamesindustry International.
As far as the nearly forgotten Wii U from Nintendo is concerned, Sebastian stated that Nintendo's console will continue to struggle in the market. If Nintendo wants to avoid that, then device needs a price cut according to Baird, who added that "the fate of the platform will likely rest on the popularity of Nintendo's holiday software lineup."
Sebastian mentioned that both the consoles are expected to face shortage issues after it was recently reported that a massive sell out is expected as soon as the units reach retailers, and that due to the early "complexity" of coordinating the console launches and catering to the kind of demand both companies are hoping to face, "it is more likely than not that there will be initial shortages."
Both the PlayStation 4 and Xbox One are set to arrive later this year.
