With the release of the GTA 6 trailer on Tuesday, Sony ($SONY) and Microsoft ($MSFT) have an opportunity to be at the center of some positive financial speculation being the two major consoles that will run the game. Since the Play Station brand is a larger percentage of Sony's core business, I expect them to be the biggest winner come Tuesday and over the next few months. Here's a quick rundown:
Some may argue that Take-Two Interactive will benefit the most for the trailer hype, but if you look at the last 30 days of trading, $TTWO is priced in already with a 17% bump. If you want to pay a premium for a slightly overvalued stock, this is probably the time.
$SONY on the other hand is showing a slightly different story. Trading flat over the last 30 days (down 0.63% during a strong market rally), there really hasn't been a moment where the market has caught wind to price in the upside of this trailer and upcoming hype. It's expected and almost certain (but not publicly covered), that GTA 6 will only run on PS5 and the XBOX Series X. Just like the other major Rockstar game releases, PC games will have to wait up to a year before a PC launch happens. Given the hype of this game, PS5 and XBOX sales are going to skyrocket.
Also, given the cross-console functionality of most games, there has almost been no reason or incentive for PS4 or XBOX One games to upgrade their console to the next generation. Not only is this the event to spur upgrades, the majority of PC games won't wait for a PC launch to get their hands on GTA 6. With 2023 production increases of PS5 and new, improved models to aid in that process, Sony is in a prime position to handle this production increase.
Take a look at this thread on the GTA6 subreddit asking PC games what they'll do when the game releases. No surprise that a large number are saying they'll buy a PS5. PS4 games will be a much larger number and purchase in droves:
https://www.reddit.com/r/GTA6/comments/189xil7/hey_people_who_are_pc_only_gamers_what_will_you/
Once PS5/XBOX X announcements come through (which they could on Tuesday or shortly after), expect the price adjustment for $SONY to take place. Don't be too late on this one.
Leave a Reply