For a long time now VR has been predicted to be the next “big thing” in the IT and gaming world and the present year would be the revealer of this. The market for this console is very huge and is regularly growing. A lot of companies have started manufacturing this product and obviously late to the party was Sony Interactive Entertainment LLC, which just announced their VR component in June, during their PlayStation E3 Press Conference for 2016 at Shrine Auditorium, Los Angeles, California.
However, it’s not always true that the early bird catches the early worm, as Sony’s PS4 base and competitive VR pricing are promising. Analysts think that coming late to the market might be a good thing because prospective customers are not sure about how much to spend on VR and most prospective buyers will not rush in, according to market research. Sony has had ideas of other company’s prices and the release of their less expensive VR is an advantage after launches by more expensive competitors.
After this announcement, the pre-orders for a $499 bundle that included the headset, a camera, and two movie controllers have immediately sold out from Amazon and Walmart, though it was not revealed what quantities were involved. A survey by Gamer Network said that PlayStation VR was the product most often mentioned among potential buyers. By the time the VR is launched in October, it is expected to have at least 50 VR-capable games to offer, which excited buyers.
Ever since the PlayStation VR announcement had brought excitement to the consumers, Sony’s stock prices have gained an upward momentum. On June 14, a day after the VR disclosure, the stock volume rose 10,000 more than the 1,130,400 it gained on the day of the announcement, playing at $27.43 to $27.83 before closing at $27.67.
Although stock prices went down again a couple of times, when looking at the bigger picture, Sony’s trend is actually going up. The electronic company has regained confidence of almost 68% as compared to December 2012’s lowest which is $9.63. This very low stock rate was a result of the hacking incident which left Sony cripple for days, done by a group calling itself The Guardians of Peace. This group breached Sony Pictures’ complete internal network nationwide and posted valuable insider information and unreleased films on the internet.
The PlayStation Meeting and Rumored PS4 Upgrade
For a couple of weeks now, there had been a rumor about Sony’s addition to the PlayStation generation. PS4 is expected to have a descendant codenamed PS4.5 or PS4 Neo. While older-gen systems got upgrades in hard drives, storage is currently plenty for avid gamers, so people are speculating that the upgrade must focus more on the processor, which could possibly render astonishing visuals for virtual reality and games at 4k resolution.
Giant Bomb has reported that Sony is sending out documentation to developers about the PS4 Neo. That information included improved performance boosts like the CPU is 1.3x more powerful than the base PS4, GPU is 2.3x more powerful than PS4, and memory has 24% more bandwidth and 512mb more usable RAM. Despite these improved specs, however, Sony is putting some strong restrictions into place to ensure that developers do not leave behind people who already purchased the PS4 console and do not wish to upgrade. The Giant Bomb report claimed that Sony will not permit studios to build Neo-only games and all released PS4 games starting in October must include support for both Neo and the base model so that they could co-exist.
In line with these rumors and speculations, Sony has announced on Tuesday that the company would hold an event in New York City on September 7 called the “PlayStation Meeting,” the same name Sony used for the event in February 2013 where they unveiled the PlayStation4. So enthusiasts are now expecting the electronic company would finally clear the smoke circling around a new gaming console. If it was indeed announced on September, it meant that the new product would be available for the holiday shopping season.
Following this broadcast, Sony’s stock price rocketed overnight. August 8 closed at $32.30 and the following market day it opened at $32.80, played from $32.70 to $33.13, and closed at $32.85. The close was around .16% more than the close of when they announced the PS VR.
Despite the market turbulence, these are exciting days for Sony as their share price continuously appreciates. Since the start of the year, it has been a good investment. On its last market day, it interchanged from $32.73 to $33.13 and it shows evidences of going up until the release of rumored PS4 Neo. Sony is a better buy now than ever.
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