Microsoft (MSFT) and Sony (SONY) could be in trouble as Valve gears up for the release of its new Steam Machine. While Valve hasn’t revealed when the gaming PC will be released or how much it will cost, it has provided some insight into the latter. Valve Hardware Engineer Yazan Aldehayyat told IGN, “If you’re trying to make a PC that has similar features and similar performance, I think the Steam Machine is going to be a really competitive price to that and provide really good value to it.”
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If the Steam Machine can offer a good value to consumers, it could turn more console gamers to PC gaming, especially with access to Valve’s Steam platform, which dominates the video game marketplace on PC. Valve’s push into the prebuilt gaming PC space comes after the success of its portable gaming PC, the Steam Deck, which has sold an estimated 4 million units.
Valve tried to release a Steam Machine once before about a decade ago. However, the market wasn’t quite ready for it. Now seems a better time, as increased prices for video game consoles could make the Steam Machine a more competitive offering. It also helps that Microsoft has struggled to find an audience with its Xbox Series X|S, leaving room for a new competitor in the home console market.
Microsoft and Sony Stock Movements Today
Microsoft stock was up 0.75% on Friday, extending a 20.95% year-to-date rally. The shares have also increased 21.27% over the past 12 months.
Sony stock increased 2.41% on Friday, building on a 46.4% year-to-date rally. The shares have also gained 59.48% over the past 12 months.
Microsoft vs. Sony vs. Valve: Which Company Will Come Out on Top?
Turning to the TipRanks’ stock comparison tool, traders can see which of these companies analysts prefer. Investors will note that this only covers Microsoft and Sony, as Valve is a privately held company.
Microsoft stock has the better analysts’ consensus rating at Strong Buy, compared to a Moderate Buy for Sony stock. MSFT shares also have the higher average price target upside at 25.01%, while SONY’s sits at 12.58%.
