BMO Capital Markets Offers Positive Remarks on Early E3 Press Events

BMO Capital Markets analyst Edward S. Williams says that Microsoft's pricing for the Xbox One was higher than expected while Sony's PS4 was right around the price point it was excepted to be at. The firm noted in a note to investors that the industry gets a rating of Outperform based on the four press conferences that happened on Monday and the one pseudo press conference streamed by Nintendo today.

"US pricing for Sony’s PlayStation 4 came in as expected at $399, while the Xbox’s launch price of $499 potentially pushes the envelope as Microsoft positions the console beyond core gamers to a broader audience," noted Williams.

Williams also thought Sony's statements on the lack of an "always connected" requirement for the PS4 and used games was positive when coupled with the cheaper pricing:

"Sony confirmed that the PS4 will play used games and will not have DRM restrictions for single player games. We believe the $100 price benefit that the PS4 will have at launch coupled with the continuation of the existing used games model augurs well for the PS4 at launch as Sony tries to regain some momentum. Ultimately, however, the underlying success will depend upon the strength of the game portfolio."

In closing Williams says that while the focus was on games at E3, his firm believes that entertainment content will be an important part of both consoles. He also said that Microsoft, Sony, EA, and Ubisoft showed some powerful properties:

"In general, we believe all four companies previewed a strong release slate of games for the next-generation consoles that should help drive growth in 2014 and beyond."

You can read the note here (PDF).

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