PlayStation 4, with a five-year lifespan, offers more power and profit for Sony Corp. business than the much newer Nintendo Co.
The quarterly figures of the two rivals of video games have shown that Sony benefits from the best console cycle, while Nintendo strives to expand its play-at-home-or-on-the-go car sales. Sony has once again boosted its operating profit forecast, showed results last week, while Nintendo missed estimates and retained its vision intact.
Game games tend to follow a predictable cycle of accelerated growth, price cuts, and retirement. But Sony breaks this model with a powerful collection of game titles for the holiday season, including a home game at Spider-Man, which creates PlayStation 4 for the best year since. Without a fresh harvest of new game titles and just one planned for holidays, Nintendo kept its forecast for 20 million unchanged exchanges for the fiscal year.
"PlayStation does a great job, Spider Man sold as crazy in the second quarter, "said Kazunori Ito, an analyst at Morningstar Investment Services in Tokyo." On the surface, it's hard to say that this was a good place for Nintendo. "
Investors have noticed that Sony shares rose 15% this year before the results, while Nintendo is down.
In essence, Sony takes out a Nintendo game page, playing games made by its own studio; those primary titles are also more profitable. PS4 exclusive Wa's Godr sold 3.1 million copies in the first three days of April, while in the last month Spider Man has surpassed a record of 3.3 million copies for an equal amount of time. Nintendo is based on a single title, the latest iteration Super Smash Bros. for Switch, to keep pace in the last three months of the year.
"Sony is using first-class titles along with subscription services such as PS Plus, which promote PS4 sales and extend their lifecycle," Ito said. "It will be painful for Nintendo without more first-class games."
Sony's December Quarter also looks strong in third-party games, with analysts predicting record sales Red Dead Redemption II after being the best reviewed game of the year, according to Metacritic. call of Duty Black Ops a new PlayStation record for first-day digital sales and other big titles to come this quarter Battlefield V. Fallout 76 and Just cause 4.
Sony's operating profit was 239 billion yen ($ 2.1 billion) for the quarter, surpassing analysts' average estimates of 205 billion yen. More than a third of them come from the PlayStation division, where profits rose 65% over the previous year to 91 billion yen. The total revenue was 2.2 trillion yen.
For the entire fiscal year, the company in Tokyo increased operating profit forecasts to 870 billion yen over previous projections of 670 billion yen. While the PlayStation division is doing well, it's also worth noting that music activity accounted for about half of this growth, thanks to EMI Music Publishing's $ 2.3 billion acquisition this year. The business added a catalog of 2.1 million songs from Beyonce, Carole King and other artists. Sony's prospects for total sales rose slightly to 8.7 trillion yen.
Nintendo's quarterly operating profit of 31 billion yen and revenue of 221 billion yen, both market promises have missed. This raises concerns about whether Nintendo can reach Switch's sales target. The Kyoto-based company maintained its forecasts throughout the year.
"It was a quiet neighborhood without many big launches from Nintendo," said Hideki Yasuda, senior analyst at the Ace Research Institute. "Achieving their switch switch really depends on the holiday quarter, especially the new one Super Smash Bros. game."
The struggle between Sony and Nintendo is also a test for the new executives of companies, both of whom took over only months ago. Kenichiro Yoshida of Sony, the former chief financial officer who was promoted to executive director in April, set a low bar that initially scared investors. Nintendo's Shuntaro Furukawa represented more generational change when he became president in April, promising to "grow the company to its fullest."
"It is very important to continue to launch new software," Furukawa told reporters at a post-win press conference last week. – Bloomberg