Stock Talk Fun Fun Time! How are Sony and Microsoft Gonna Do In The Markets?

9:47 PM on 11.12.2013 (server time)0

Little known fact about me, I'm actually a bit of a stock market buff.

So, for anyone interested, let's talk about how Sony and Microsoft are going to fare in the market once they're consoles are released.

Typically, in the vain interest of a negligible amount of profit video game stocks are usually only good for things like buying Activision before the annual CoD record breaking launch and selling around the report of the Christmas earnings. You can swap X company and X blockbuster game into that regard.

This year, however, has been very different. While the whole debacle of the Xbone and the DRM and E3 fist-fight, leading to that Sony knockout blow we all fussed over for a bit, may have been ignored by 24 hour news channels - it was quite the bit of conversation on CNBC. Yes, the stuffy stock market channel (which actually has the most immature morning show on TV) couldn't shut up about it. Everything MS did, caused Gamestop's stick to either rise of fall dramatically. It was fascinating to watch. These next coming weeks lead me to scratch my head at what exactly is going to happen to Sony and Microsoft's stock which are notoriously stagnant.

So here's the deal. The video game divisions of Sony and Microsoft are worth billions. Yet, so few billions that these divisions are a drop in the pond of these technology giants. Usually there is so much going on with these companies that a great success or failure isn't going to do much to the price.�

When it comes to MS, I expect this to remain true. There's so many fish on their plate, the new CEO search, the surface, the phones, the latest lackluster OS, the fact that they're hemorrhaging money left and right in their constant quest of producing "me too" products, that if the Xbone has a tremendous launch or is a failure, it's just not going to matter to a company used to both extremes. Sure, the stock may move a couple of points for a day or two, but that's all I expect to happen because that's what always happens with MS.

Sony has been suffering a slow decline over the years. One large reason being that they're not the leader in TVs anymore. (Good, Christ I love my Samsung Smart TV) Sony needs a win. If the PS4 kicks off, I think it will move the price much more than it normally would. I can't say the same for a failure when it'll be looked at as another decline in a company struggling to maintain its former supremacy.

Bit of a longer rant than I expect, but I find this side of the industry very interesting. These are corporations after all, and while it frequently is something to bemoan (rightfully so) it is interesting to see how the decisions they make impact their stock price.