Certainly, the specs the company unveiled were impressive: a powerful AMD processor, plenty of memory, a new user friendly interface, new social features, better graphics. But several things about the event troubled investors. For one thing, the company did not actually show the box (they got a smattering of applause for showing the new controller), gave no price information and did not announce a specific launch date. More than that, the Street sees Sony's new box as more evolutionary than revolutionary, focused on the core gamer market at a time when Microsoft has opted to position the Xbox more as an all-purpose set-top box, providing not only games but also a range of video content options.
Jefferies analysts Brian Pitz and Brian Fitzgerald in a research note this morning describes yesterday's shindig as "ho-hum...not a must have."
"Overall we believe Sony's system will further pressure Nintendo, but lots of questions remain unanswered," they write. "We also note the robust digital store could accelerate the transition away from the retail channel, pressuring GameStop (although GME would likely see robust hardware sales from these new console launches). Note Sony did not confirm pricing, specific availability, whether the PS4 would even support physical media, whether used games would be supported, or if day-one, full game downloads would be supported. Until we hear these critical details, and details about the next-gen Xbox from Microsoft, we won't get too excited."
Robert W. Baird analyst Colin Sebastian seems cautiously optimistic about the new system.
"Overall, the console looks promising," Sebastian writes in a research note. "While the PS4 specs and announcement don't yield any radical changes, we think the console design decisions look good. Unlike the beginning of the last cycle, when Sony was ascendant, Sony has since ceded valuable share to Xbox, but the overall gaming landscape has also changed (new competition from iOS and Android), reducing design gamble opportunities. We think all core game publishers should see positive sentiment improvements."
ISI Group's Mike Swierczek sees some risks in Sony's apparent decision to play to the core gaming base. "While an impressive device, positioning the PS4 as gaming 'consumer centric' may miss the bigger picture. For now, Sony seems to be intentionally taking the road toward a niche product in an industry in decline. We’d like to see more non-gaming detail."
SNE is down 42 cents, or 2.9%, to $14.05.
