Sony’s New PlayStation Console to Hit Stores by Holidays

Aug. 21 (Bloomberg) -- Sony Corp. will start selling the
PlayStation 4 in North America on Nov. 15, moving to obtain an
early advantage in the largest video-game market against
Microsoft Corp.

The $399 player, Sony’s first new console in seven years,
will be available in Europe on Nov. 29 and in 32 countries for
the Christmas holiday season, Sony Computer Entertainment Chief
Executive Officer Andrew House said yesterday in Cologne,
Germany, ahead of the annual Gamescom, Europe’s biggest game
conference. Orders already top 1 million, he said.

Sony’s plans put the PlayStation 4 in more than double the
markets of Microsoft’s $499 Xbox One as the two companies begin
a multiyear battle for dominance. Microsoft, which initially
targeted 21 countries for its debut, last week cut the number to
13 to ensure larger markets have sufficient supplies.

“Sony’s pricing is aggressive,” said Koki Shiraishi, a
Tokyo-based analyst at SMBC Nikko Securities. “Sony has a
better chance against its rival because it’s setting the console
price lower.”

Sony gained 0.5 percent to 1,937 yen in Tokyo trading today
and has doubled so far this year.

Smartphone Games

The new consoles from Sony and Microsoft enter a
marketplace that has shifted since the last influx toward mobile
games played on tablets and smartphones like Apple Inc.’s iPhone.
Console makers are betting faster machines with new features,
from motion capture to immersive graphics, will entice consumers
to spend on hardware as well as games.

The introduction of new consoles is likely to spark
consumer appetite and set the video-game market up for a new
growth cycle, according to a note from Richard Beaudoux, a
Paris-based analyst at Natixis Securities.

“Sony’s set is cheaper than Xbox, so it will be easier to
purchase,” said Junya Ayada, an analyst at Daiwa Securities Co.
in Tokyo. “The PS4 is said to have gathered over 1 million pre-orders, but the key question is how much will it sell after the
launch.”

Sony will discuss its Japan release plans at a Sept. 9
press conference.

The company unveiled the PlayStation 4 in June at E3, the
Electronic Entertainment Expo. To counter the mobile threat,
Tokyo-based Sony is tying the console to its Vita handheld
player. Executives yesterday showed off games for 90 minutes to
highlight the robust lineup of available titles, demonstrated
how users will be able to use Wi-Fi within the home to play
games streamed from the PlayStation 4 and announced a price cut
for the Vita.

Price Cut

The Vita’s price was lowered to $199 from $250, Jim Ryan,
CEO of Sony Computer Entertainment Europe, said at the event. In
Europe, the new price is 199 euros ($267).

Ryan also said the company has forged partnerships in
Europe with Deutsche Telekom AG, Orange SA, Virgin Media and Ono
to sell fast Internet service with graphics power tailored for
video-game players.

House also took a dig at Microsoft, which faced a customer
backlash over policies that would have restricted the ability to
buy, sell and trade used games for the Xbox One, as well as
requiring a connection to the Internet.

The Xbox One also may be played without using the Kinect
motion-sensing controller, which allows for voice commands, and
can identify users. The device is included in the sale price and
initially was going to be required to turn on the console.

Message ‘Shifted’

“While others have shifted their message and changed their
story, we were consistent in maintaining policies that were fair
and in tune with consumer desires,” House said.

Microsoft unveiled its Xbox One console in May. The company
hasn’t specified a release date.

Sony probably won’t gain a strong advantage over Microsoft
because the Xbox One is likely to go on sale in all of its
announced territories Nov. 22, said Michael Pachter, an analyst
with Wedbush Morgan Securities in Los Angeles. That means the
PlayStation 4 will only be available in the U.S., the largest
market, for one week ahead of its rival, and be behind it
elsewhere.

Nintendo Co. began selling its most recent console, the Wii
U, in November. It sold 160,000 units of the player in the three
months ended in June, pushing the total to 3.6 million since its
debut in November. In April, the company forecast sales of 9
million in the year ending next March.

Gamescom, due to host more than 275,000 attendees this year
according to its organizers, runs from Aug. 21 to Aug. 25.