It's time to put the Sony (NYSE:SNE) PlayStation 2 on a diet. No, it won't be one of those faddish Atkins programs where the machine will have to weigh all its carbohydrates before each meal. It's much simpler than that.
As all gamers know, every console system eventually gets a new design scheme as it progresses toward the latter spectrum of its cycle. At the beginning of November, consumers will see a smaller PlayStation 2 unit at their local Best Buy (NYSE:BBY), Wal-Mart (NYSE:WMT), or wherever video game systems are sold. It'll be less bulky and therefore lighter, which is an excellent incentive, in my opinion, to buy it since I actually had purchased the Nintendo GameCube partly because of its compact size. The casual gaming consumer will most certainly respond to this space-saving stimulus, which Sony says will make the device similar in scope to a hardcover novel.
The jump in sales that I expect during the Christmas selling season for PlayStation 2 will make the coffers of Activision (NASDAQ:ATVI), Electronic Arts (NASDAQ:ERTS), and THQ (NASDAQ:THQI) look increasingly attractive. Sales for the PlayStation 2 and Microsoft (NASDAQ:MSFT) Xbox certainly jumped when they announced their respective price cuts earlier in the year, and that helped the publishers gain a wider distribution market for software. Not only that, but since most of the newly installed user base will probably be contingent upon the premise of gifting, the number of titles purchased for these units will most likely be high; after all, if little Joey gets a PlayStation this year, aunts, uncles, grandparents, and the like can each buy one game to go along with it.
The final quarter of the year should be a joyous one for Sony and the video game publishers. And even though we still have a lot of time before the release of the new consoles, it pays to look forward as soon as is conceivable and invest in those companies that will benefit from the new cycle. Publishers such as Activision and Electronic Arts certainly bear close scrutiny in this sector.
Additional information:
Electronic Arts, Activision, and Best Buy share the honor of being selections for Motley Fool Stock Advisor, a powerful tool of information capable of beating the market at large. Sign up today without risk for six months, and see how valuable it actually is.
Fool contributor Steven Mallas owns none of the companies mentioned.
