Premium investing content with specific tips, mid-week. All for free. Only for subscribers of our free newsletter >>

Gaming The Markets: Why Games Consoles Might Be The Most Interesting Stock To Play in 2019

Games consoles are an outrageously growing market, and therefore the stocks that offer gaming consoles might be interesting plays in 2019.

Sony’s live streaming merge with Microsoft, Google’s Stadia and the upcoming release of the next generation of games consoles have given the tech market an almost HBO-like mini-series backdrop. It is a market that has seen big price movements in investor positions throughout the first two quarters of 2019.

New console releases

At E3 2018, Xbox Chief Phil Spencer revealed its “hardware team is deep into developing the next generation of Xbox consoles [to] deliver on our commitment to set the benchmark for console gaming”. That benchmark has seen the release of its all-digital Xbox One S, which is a disc-less console, as well as the technologically superior Xbox One X, which is an improved model of the original console. But it also signaled the upcoming and more powerful Xbox Two. Meanwhile, Sony’s Mark Cerny also confirmed that the next generation PlayStation console is in development.

Touted for a release next year, he confirmed: “[for] the next console the dream is to show how dramatically different the audio experience can be when we apply significant amounts of hardware horsepower to it”, which indicate that headphone and VR interfaces are key components of the yet-to-be-named PS5.

Gaming consoles fluctuating share price

sony nintendo microsoft

Source: IG

When they do arrive, there’ll be an immediate reaction from the investor market, whether positive or negative. In 2013, PlayStation’s shares took a tumble when it released its PS4, dropping over 3 percent in the seven days surrounding its release, while the PS2 release in 1999 saw an increase of its share price by 1.57 percent.

The fluctuating tech market is when the value comes to the fore in utilizing trading strategies that favor CFD vs share trading. This is where traders get to take advantage of these immediate short-term price swings through such contracts for difference (CFDs) by identifying price movement in financial markets and using leverage to spread capital rather than paying for the full value of shares upfront. Because of new console releases and the speculation surrounding the game streaming market, CFDs can cover both short and long positions on a market’s direction.

ps stats

Source: IG

Sony and Nintendo share prices take a tumble

When Google announced its new Stadia streaming service in March, Japanese shares of PlayStation manufacturer Sony dropped by 3.38 percent. Nintendo suffered equally, with its share price dropping by 3.21 percent. While both have recovered, it is increasingly interesting to see how investors will react to release news and Google’s action in the market.


The reaction demonstrates how influential gaming and gaming tech is and how such statements of intent can shift both money and sentiment. Google Stadia claims its cloud-based games streaming platform will save gamers hundreds of dollars on consoles and hard copies of games. The computing legwork needed to handle the graphics and processing work will all be done by Google’s cloud, and the cloud is a prime digital battleground for investors to speculate on.

Sony, Microsoft and Google Stadia enter a streaming games platform battle royale

Sony and Microsoft have been working together to launch a games service through an integrated AI and cloud platform, which would be in direct competition with Google Stadia and Amazon. The three big cloud platforms are Amazon Web Services, Microsoft Azure and Google Cloud, and with Sony and Microsoft working together, it is a big business win for Azure, allowing it to compete in more retail rather than purely business applications.

Sony already has a big share of the games streaming market through its PlayStation Now platform, and Microsoft also has its Project xCloud. So when Sony released details of some of its patents relating to the new PS5 – such as a system for combining recorded application state with application streaming interactive video output – what it shows is a cloud gaming service for the forthcoming PS5. In business terms, it looks to be heading for a direct clash with Google Stadia.

The games console market, and by default games streaming too, is huge business. Billions of dollars are invested in it every year. New adoption of technology, especially cloud and AI, allow companies to capture bigger footholds in the market. How the new console releases and their new capabilities are perceived will see big market volatility because new console releases always have an immediate market effect. It will certainly provide opportunities for investors and traders to capitalize on them when they see it.

INVEST NOW IN CRYPTO & BLOCKCHAIN: Get access to our first aggressive BUY alert in 15 months! Find out our top 10 cryptocurrencies to buy and top 10 blockchain stocks to buy NOW. Get instance access to our crypto & blockchain investing service + portfolio >>