PlayStation 4 was just announced on Wednesday. You’d think the excitement for Sony’s future would give its stock performance a bit of a boost after seeing where the games division is headed, right? Guess not – on Thursday, Sony’s shares dropped more than 2%… while Nintendo’s saw a 2% increase.
What does this mean, exactly? Click below for a brief impression.
For those of you who don’t recognize the significance of stock prices: they’re usually a pretty good indicator of where potential shareholders and investors see the company going. If stock prices are falling, it means people are losing confidence in a company’s future (and future profits, which means gains for shareholders); if stock prices are going up, it means people see the company going places and want to put their money in to get a piece of the pie later.
If Sony’s stock is losing value, and Nintendo’s stock is gaining value, that means investors are starting to see more potential in Nintendo than in Sony. It could be that they don’t believe PS4 will perform any better than Wii U has, or it could mean that they’re not impressed by the software lineup – it could mean any number of things.
I tend to think that the presentation has made it clear that Sony is still primarily interested in the same “hardcore gamer” bloc that it captured with PS3 – a very different crowd than the mass market that went after the PlayStation and PS2. If that’s the case, then it’s easy to see why there might be some hesitation: PS3 wiped out virtually all profit Sony made from PS2 – which is still the highest-selling home console ever.