Sony’s Groundbreaking Announcement Among the Best of CES

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Many people missed what could be one of the most significant announcements at the recent 2014 International CES in Las Vegas.

PlayStation Now is Sony's (NYSE: SNE  ) literal game-changer. The streaming video game service could mark a turning point in the industry, with the introduction of a recurring revenue-based model similar to what Netflix (NASDAQ: NFLX  ) offers.

A full transcript follows the video.

But the top stock? Not Sony.
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Rex Moore: Welcome to the 2014 International CES. We are wrapping things up and I am joined today by Eric Bleeker, Managing Editor at The Motley Fool. We're going to go over some fun topics here today. The first one; the best of CES. What did you see out there?

Eric Bleeker: The keynote this year is Sony, and a lot of people thought that was kind of boring -- Sony is not exactly leading the technology revolutions of today -- but their CEO Kaz Hirai unveiled PlayStation Now, which is essentially a streaming, cloud-based service for video games.

They had acquired a company a few years ago, named Gaikai, and they've evidently been able to really push the technology to where now you can -- presumably the idea will be -- subscribe to their service and be able to stream older games. They have a significant back catalog between PlayStation, PlayStation 2, and PlayStation 3.

What I think is really fascinating about this, though, is you think about the value of intellectual property in video games. Think about Neflix. Netflix is a company worth $20 billion, and they have very low IP of their own. They're buying everything, right?

Let's go to Nintendo. They're worth $20 billion, and they've got $8 billion of cash in the bank. What if you were able to take a company like Nintendo, with all that IP, and create a recurring revenue-based service where people, instead of buying games piecemeal, as many people have on Wii, they just subscribe to the service.

It has the potential to fundamentally change the business of video games. Oh, and the technology is so cool it can work on other devices! Nintendo right now doesn't have a presence on smartphones? A streaming service could potentially stream to smartphones as well.

Nintendo has been very leery of doing this, but with a little ambition this company has an amazing opportunity at their feet.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2806115, ~/Articles/ArticleHandler.aspx, 8/28/2015 2:07:46 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rex Moore

Rex Moore spent his formative years in Texas, and fought beside Davy Crockett at the Alamo. He currently travels the globe for TMF, bringing back video reports on conferences and companies that matter for investors.

Today's Market

updated 4 hours ago Sponsored by:
DOW 16,654.77 369.26 2.27%
S&P 500 1,987.66 47.15 2.43%
NASD 4,812.71 115.17 2.45%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/27/2015 4:00 PM
NFLX $117.66 Up +7.53 +6.84%
Netflix CAPS Rating: ***
NTDOF $195.96 Down -2.33 -1.18%
Nintendo Co. LTD O… CAPS Rating: No stars
NTDOY $24.78 Down -0.41 -1.61%
Nintendo CAPS Rating: **
SNE $25.86 Up +0.82 +3.27%
Sony Corp (ADR) CAPS Rating: **