Companies like Nintendo and Sony have been scrambling to come up with a response to Microsoft’s mammoth acquisition of Activision-Blizzard. The stock prices for both companies took a tumble early this month as Microsoft gains the upper hand in the console wars.
On February 2nd, Sony lowered its forecast for PlayStation 5s sold to 11.5 million units by the end of the company’s 2021 fiscal year which concludes this March. Previously, the organization had forecast it would sell 14.8 million units. The next day, the company’s shares fell by 6% in Tokyo.
On February 3rd, Nintendo announced it will be one of the victims of global supply chain issues, lowering the number of expected units sold to 23 million, which is down from 25.5 million in May of 2021. Prior to this presentation. Nintendo’s stock closed that day down 2.8%.
The Profit‘s Take:
Microsoft has done an incredible job of changing the narrative, leaving Sony to look like the loser right now. This is not a small drop in projected units. 3 million units is like 20% to 25%. That’s not a little miss. That’s a PRETTY BIG miss. On a complete side note, Steam Deck unveils dominated YouTube this week. Almost across the board, the consensus was that this was incredible and the next great innovation in PC gaming. They’re a direct competitor to Sony and Nintendo. I wouldn’t be surprised if the Steam Deck has an impact on these numbers two quarters from now. It’s going to have an impact on the gaming market as a whole.
(All information was provided by CNN)
0 comments on “Nintendo And Sony Feel The Burn As The Console Wars Heat Up”