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Sony Introduces Virtual Reality Headset

By Daniel Kobialka – Mar 21, 2014 at 1:00PM

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New virtual reality headset for PlayStation 4 could help Sony stay ahead of Microsoft.

The console wars between Sony (SONY 2.20%) and Microsoft (MSFT -2.58%) have been fierce, and with Sony's latest announcement, both companies could be in for a dogfight over the next few years.

Reuters reported that Sony unveiled a new virtual reality headset for its PlayStation 4 console this week , aptly named "Project Morpheus." This headset takes gamers where they have never gone before -- into the matrix. By projecting real-time images in front of gamers' eyes and tracking their head movements, Project Morpheus delivers a one-of-a-kind virtual reality experience, which could help Sony improve console sales.

PS4 or Xbox One?
Released on Nov. 15, 2013, the PS4 has been popular among gamers worldwide. Sony reports that it has sold more than 6 million PS4 consoles to date, and Project Morpheus could help Sony further boost profits.

However, Microsoft is quickly gaining ground on Sony. While NPD found that the PS4 was the top-selling console last month, Microsoft's Xbox One narrowed the sales gap between the two video game consoles. In addition, 48% of the total software market share in February consisted of combined sales of Xbox One and Xbox 360 games.

But, Sony holds a key price advantage that could help it stay ahead of Microsoft in the console wars. The PS4 is cheaper than the Xbox One, $399 versus $499, respectively, and this price difference may play an important role in both companies' console sales in the near future.

New console titles on the horizon
A video game console is only as good as the titles available for it, and both Sony and Microsoft plan to release new games this year that could help their respective stocks.

inFAMOUS: Second Son, scheduled for release on March 21, is one of several PS4 titles that could help Sony distance itself from Microsoft. The Sony-exclusive world-adventure game optimizes the PS4's high-powered graphics chip and is designed to provide gamers with an experience unlike any other. With inFAMOUS: Second Son, Sony may be able to close out March on a strong note and continue to gain momentum into the second quarter of 2014.

Microsoft released sci-fi adventure game Titanfall in February, which helped spark Xbox One sales. This title instantly became one of the Xbox One's top-sellers, and the Titanfall Xbox One bundle allowed Microsoft to boost sales 96% in the week after the game's release. 

As Sony and Microsoft unveil new titles, each company could watch profits rise. Competition is likely to bring out the best in Sony and Microsoft, especially as both companies consider innovative ways to connect with consumers. 

What to expect from Sony and Microsoft
The upcoming Electronic Entertainment Expo, or E3, in Los Angeles will provide gamers with a glimpse into the futures of both Sony and Microsoft. This expo is scheduled to take place from June 10-12, and will feature software and hardware from Sony, Microsoft, and other tech giants across the globe. E3 also will give investors a better idea about what to expect from Sony and Microsoft going forward, and may ultimately determine which of these companies will come out on top in the console wars.

Daniel Kobialka has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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