Sony and Microsoft resume game console battle
Sony is hoping for blockbuster sales of its new PS5 games console and a leg-up in the battle for dominance with Microsoft, which will launch its Xbox Series X console in the late autumn.
Last week Sony released a preview of its new PS5 games console, due in shops before Christmas, says Matthew Field in The Daily Telegraph. Sony is hoping for“blockbuster” sales and a leg-up in the two decades-old battle for dominance with Microsoft, which will launch a competing machine in the late autumn, the Xbox Series X. This comes as lockdown has “super-charged” the gaming market, with reported sales of Sony’s PS4 console and Microsoft’s Xbox One more than trebling in the first half of the year.
Both companies’ new offerings seem highly advanced compared with the current generation, says Dan Gallagher in The Wall Street Journal. They boast faster processors, better graphics and more storage. Still, the ”harsh” global backdrop may persuade cash-strapped consumers to stick with “cheaper options” such as second-hand copies of current models. The fact that production in the games industry has been hit by the pandemic, with programmers forced to work from home, is also a worry as new games “are key to selling new consoles”.
A bigger concern is the shift towards streaming games on the internet, says Kosuke Shimizu and Ryosuke Arasawa in the Nikkei Asian Review. If 5G mobile technology spreads fast people “will be able to enjoy high-definition games on their smartphones or standard PCs”, rendering consoles redundant. So, it is no surprise that Sony will make the PS5 “backwards-compatible” with older games to minimise disruption for the 41.5 million users of its subscription service that allows them to play online with other gamers.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
Zoopla: housing market recovery continuing amid brighter 2024 outlook
The Zoopla House Price Index has found sellers are still accepting five-figure discounts on their properties. But house price inflation is improving.
By Henry Sandercock Published
-
Revealed: the best funds to buy before the end of the tax year
Looking to add more investments to your portfolio but not sure where to start? We reveal the best funds to buy now as the end of the tax year edges closer.
By Katie Williams Published
-
What to consider before investing in small-cap indexes
Small-cap index trackers show why your choice of benchmark can make a large difference to long-term returns
By Cris Sholto Heaton Published
-
Why space investments are the way to go for investors
Space investments will change our world beyond recognition, UK investors should take note
By Merryn Somerset Webb Published
-
Time to tap into Africa’s mobile money boom
Favourable demographics have put Africa on the path to growth when it comes to mobile money and digital banking
By Rupert Hargreaves Published
-
M&S is back in fashion: but how long can this success last?
M&S has exceeded expectations in the past few years, but can it keep up the momentum?
By Rupert Hargreaves Published
-
The end of China’s boom
Like the US, China too got fat on fake money. Now, China's doom is not far away.
By Bill Bonner Published
-
Magic mushrooms — an investment boom or doom?
Investing in these promising medical developments might see you embark on the trip of a lifetime.
By Bruce Packard Published
-
What pension providers don't tell you about your retirement money
Check the small print from your pension provider or risk losing thousands.
By Merryn Somerset Webb Published
-
Should you invest in sector funds?
Sector funds can be a useful way to fine-tune a portfolio or track a theme, but check what the index holds.
By Cris Sholto Heaton Published