PlayStation and Xbox more available for Children's Day

This year it is much easier to buy a game console for Children's Day. The market is slowly saturating and it is becoming easier to find PlayStation 5 or Xbox One X in stores. Sony, Microsoft and Nintendo are competing strongly in this market. As a result of the sell-off in the market, the stocks of Sony i Microsoftu significantly cheaper. 

Consoles more accessible, despite problems on the market

The purchase of the latest game console for Children's Day will be much easier this year than a year ago. And this is with all the time problems in supply chains and access to chips. In Polish stores, you can now buy Xbox One X and Nintendo Switch, PlayStation 5 is also appearing more and more often. The latest generation consoles have been the hottest product for the last 1,5 years, for which the demand was difficult to satisfy producers.

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.

Sony's number 1 product

The most sought after in the market remains PlayStation 5 produced by Japanese Sony. So far, i.e. for 18 months from the premiere, the company has sold 19,3 million of these consoles, of which in the first quarter of this year it was 2 million. pieces. Recently, the sale of consoles has been supported by plans to introduce a new PlayStation Plus subscription from June 13, i.e. a subscription with access to games. In this way, Sony is trying to copy the Xbox Game Pass introduced by Microsoft, but, as announced by the Japanese manufacturer, this package will not include the latest productions, other than the Microsoft subscription. The list of games included in it will be of great importance for the success of the new Sony subscription, which we will not know for some time. Sony shares, which are listed in Tokyo and New York, have declined by 20% since the beginning of the year, reflecting the general sell-off in the market that has hit tech companies. Sony's shares grew over the past years (and especially during the pandemic) and are now 190 percent. more expensive than 5 years ago. It is worth remembering that the sale of the PS5 console has a negative impact on Sony's results, as the company sells them below production costs in many markets. In this case, the company is counting on profits from the sale of games and other console-related services, and now it will include income from a new subscription with games.

Nintendo Switch

Although in Poland Nintendo products are less popular, it was this manufacturer that sold the most of them. The basic console of this company is the Nintendo Switch, which has been released for 5 years. During this period, the company sold almost 108 million consoles, which is much more than Sony or Microsoft. Recently, it is selling less console precisely because of the limitation in access to processors. At the same time, it struggles with the necessity to make its console more attractive, which is technologically lagging behind the competition. The last innovation introduced is the Switch version with an OLED screen. Console sales are currently driven mainly by game releases. The most important of them last year was Animal Crossing: New Horizons. In total, the company sold PLN 235 million during the fiscal year. plays your games. Nintendo shares since the beginning of the year have increased by 7%, and in the last 5 years have increased by 74%. In October, the company plans to split its shares 1:10, which is usually an impulse for growth in the market.

Xbox One X, Xbox One S

In stores, there is usually no problem with buying the Xbox One X console produced by Microsoft. Its cheaper and weaker version is also available on the market - Xbox One S. Microsoft is a company focused on the production of software and services in the cloud, for several years it has been bolder and bolder. itself in the gaming console market. According to the data provided by the company for the first quarter of this year, the company reached 6 percent. y / y increase in profits related to digital entertainment, including sales of Xboxes, subscriptions and services as well as games. Including the increase in console sales amounted to as much as 14%, it is the effect of the still unmet global demand for Microsoft consoles. The possibility of using Game Pass subscription attracts many users to the Microsoft console. Its price in Poland is PLN 40, and it includes access to over 100 games, many of which are new to the market. With the subscription model, people who like to play a lot of games can significantly reduce the costs of playing and using the console. The success of this model is proven by the fact that it was copied by Sony and Nintendo. The console and entertainment department is responsible for around 7,5 percent. Microsoft's overall sales, hence its impact on the company's results is not significant. Since the beginning of the year, shares have fallen by 18%, and in the last 5 years they have gained 280%.

In addition to Nintendo, Sony and Microsoft, you can also choose a wider exposure to the digital entertainment market by investing in companies from the gaming industry, such as Electronic Arts, Roblox or CD Projekt Red. The more so as their valuations have now approached the market average. You can also use the eToro SmartPortfolio @InTheGame platform, which offers exposure to a wide market of companies related to the gaming industry.