Despite Sony’s weak sales over the past few years, the coming days will be incredibly important for the financial growth of Sony and a potential increase/decrease in their stock price. For those who are unfamiliar with the gaming industry, E3, or the Electronic Entertainment Expo, begins tomorrow showcasing the newest and best in all things gaming. While Sony, like Microsoft, is unexpected to announce its upcoming Playstation 4, any rumors will have a dramatic shift on the market price. However, despite the hype around the next generation of gaming consoles, many analysts remain bearish as retail sales of video games have declined for the past three years and is down -27%, compared to the same period in 2011. According to analysts, Sony’s expected Playstation 4, or PS4, will sell only half of the PS3 volume as competition increases from other handheld and mobile phone devices.
Thomas Doherty is a student at Villanova University majoring in Finance and Economics. All questions and comments can be sent to Thomas@KeeneOnTheMarket.com