The Xbox One is out, but with Sony (NYSE:SNE) having already sold 1 million PS4 consoles, the pressure's on at Microsoft (NASDAQ:MSFT). Will gamers respond? How much of an impact should investors expect?
Fool analysts Tim Beyers and Nathan Alderman explain why they aren't expecting much in the latest episode of Geekstock, The Motley Fool's new Web show, in which we talk about the big-money names behind your favorite movies, toys, video games, comics, and more.
Nathan points out that in addition to the Xbox, Mr. Softy's Entertainment and Devices Division is also responsible for Skype and Windows Phone. You'd think that would make it an important contributor to Microsoft's success, yet Entertainment and Devices accounts for roughly the same share of revenue now as in 2005, when the groundbreaking Xbox 360 was first introduced.
Tim adds that Microsoft's strategy of marketing the Xbox One as an all-inclusive device could pose problems, since all-in-ones tend to perform at least a few tasks poorly. Nor is the strategy likely to be unique. Apple is adding features to its set-top box daily, and with the increasing popularity of mobile games could soon threaten console sales.
Do you agree? Did you purchase the Xbox One or the PS4 ? What do you think so far? Please watch the video as host Alison Southwick puts Tim and Nathan on the spot, and be sure to check back here often for more Geekstock segments.