How Sony Stole From Apple, and Other Big Stories From E3
Filed under: Investing
Each E3 gives gamers plenty to chew on, and this year was no exception as publishers added sequels, up-and-comers introduced new titles, and a cold console war grew hot again.
Big publishers captured most of the headlines, as Time Warner touted Arkham Origins, Activision Blizzard showed Call of Duty: Ghosts, and Electronic Arts previewed Titanfall for the Xbox One and teased Star Wars: Battleground, the first of what could be many genre games under a broad-based license with Walt Disney.

A pilot and a titan in EA’s Titanfall. Source: Electronic Arts.
But no one at E3 made bigger news than Microsoft and Take-Two Interactive , and for all the wrong reasons.
Still tone-deaf after all these years …
You know it’s bad when Microsoft denies there’s a problem in the first place. (Cough, Vista, cough). But that’s what we had from Mr. Softy at E3 last week: no response to gamers who hate how the forthcoming Xbox One console will require them to log in via the Internet once a day to check for rights violations. No sharing of games with others, either. Or selling used copies back to GameStop.
You can almost picture CEO Steve Ballmer speaking from the pulpit. “Gaming is a privilege, not a right,” he’d say in defense of the Xbox’s daily spying as gamers riot in the streets below. Or not. The picture is what matters here: Mr. Softy casting a pall over a graying, Orwellian crowd of former Xbox enthusiasts.
A perfect setup for Sony , which responded with an overhand smash of an ad:
Sony skewers Microsoft’s DRM policy. Sources: Sony, YouTube.
Microsoft hasn’t suffered a takedown like this since Justin Long and John Hodgman dismantled Vista in Apple‘s now-infamous “I’m a Mac” ads. How ironic that Sony threw the punch, since it was the iPod that killed the Walkman. A rumored TV could do even more damage to the Japanese consumer-electronics giant.
For now, it’s the PS4 threatening the Xbox One. And, for that matter, the entire Xbox line.
Not that Mr. Softy is without allies. Notably, EA. Microsoft touted Titanfall at its E3 press event. More will board the bandwagon as publishers come to realize the Xbox One’s log-on requirement could lead to more direct relationships with players, less piracy, and more upselling of options and upgrades.
Presuming, of course, that gamers don’t abandon the Xbox for the PS4 first. Both consoles will go on sale in time for the holiday shopping season.
Grand Theft Auto: thunder, stolen
Mr. Softy may still be tone-deaf, but the old man hasn’t lost his timing. A holiday ship date virtually guarantees sales will be better than they might be otherwise.
If only Take-Two Interactive could say the same: The company’s Rockstar Games subsidiary plans to in September, and for current-generation consoles only.

Take-Two showed new GTA V images, if not the game, at E3. Source: Rockstar Games.
Rockstar probably didn’t have much of a choice. As the developer says at its site, GTA V is a “massively ambitious and complex game.” So even if Microsoft and Sony sent out tools for writing new games to the Xbox One and PS4 months ago, Take-Two was probably too far into the development process to do anything other than to keep writing and testing the game for existing consoles.
Sony, for its part, is helping by offering what amounts to a consolation prize: a special GTA V bundle that pairs a 500 GB PlayStation 3 console with the Blu-ray edition of the game. A separate “pulse” headset for experiencing top-quality audio during key moments in the game retails for $179.
Will gamers buy? No doubt. Grand Theft Auto is a multibillion-dollar franchise, just like the Xbox. Flubs — even big ones — won’t keep them from selling both in substantial quantities. But here, “substantial” may not be enough to create the sort of profit growth Microsoft and Take-Two investors are seeking.
What surprised you at E3? Are you more or less interested in Microsoft and Take-Two stock at current prices? Let us know what you think using the comments box below.
Play to win
If Wall Street history proves anything, it’s that the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool’s free report “3 Stocks That Will Help You Retire Rich” takes you inside some of the market’s best ideas building long-term wealth so you can retire well. Click here now to keep reading.
The article How Sony Stole From Apple, and Other Big Stories From E3 originally appeared on Fool.com.
Fool contributor Tim Beyers is a member of the
Motley Fool Rule Breakers
stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple, Walt Disney, and Time Warner at the time of publication. Check out Tim’s Web home and portfolio holdings, or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends Activision Blizzard, Apple, Take-Two Interactive, and Walt Disney and owns shares of Activision Blizzard, Apple, GameStop, Microsoft, and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a .
Read | Permalink | Email this | Linking Blogs | Comments
http://www.dailyfinance.com/2013/06/16/how-sony-stole-from-apple-and-other-big-stories-fr/
