Sony Played Playstation 4 Launch Perfectly: Vorhaus

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Nov. 15 (Bloomberg) -- Mike Vorhaus, president at Magid Advisors, examines the launch of Sony’s new Playstation 4, how the gaming landscape has changed since the last reboot of the system and the head-to-head competition with Microsoft’s new Xbox One. He speaks on Bloomberg Television’s “Bloomberg West.”

Help put this in context for us, mike.

How important is this lunch for sony?

Welcomed the launch is obviously important for sony.

They built this industry around the playstation one, playstation 2. lay station 4. -- playstation 4 will be in high demand.

It is a really important place for sony.

I think you can find a lot of gung ho gamers up really late tonight playing with her new box.

Ultimately, though, for it to be successful, how will that be measured?

Is it the assembly -- invisibly the number of consoles that are sold?

The number of consoles sold will be very important.

I think it will be very hard at the end of this cycle, 5, 6, 7 years of not to have as many of the new, nexgen out as we did in this current nexgen.

Your previous guest was pointing appeared we had the ipod, which was not even in play, the iphone that was not even in play.

But the money tied to this game is what is important.

Selling the games -- and unlike last time, until recently, a lot downloadable content.

So some of these games -- sony nx logs can knock some of these games out of the park, they are going to sell a ton of additional content.

So $60 plus another $50 less another $100 and we see gamers spending $300, $400 on a game in one year.

These guys can add that extra digital revenue, and every indication is they are doing or do well, then these can be pretty big platforms for them in terms of making more money than just selling the desk -- discs.

You mention a five-year cycle at a time when people are buying tablets and smartphones at a much quicker rate.

Within 12 months.

Within two years, certainly.

How can sony know what the demand is going to be like for products five or six years now, especially with all the change that has been taken place in the world of gaming?

They really cannot.

They do estimates based on price cost.

They know the components will be cheaper.

But they do not know where they are going to be in five years.

Nobody knows -- look, we had the same box out from steam, we have the ouia, google is talking about having a console, amazon is rumored to have a console -- i should say google is rumored, not that they've spoken about appeared there will be a lot of competition.

A question about the timing of this release, roughly a week ahead of microsoft's xbox one, does that really provide a much of an advantage?

You know, a month is better than a week and two months is better than a week, but you know, last time they were quite a few months later.

Quite a few months.

Look, i think playstation has played this perfectly.

They came out with the right price, they're coming out a little bit ahead of the competition.

A couple of years ago, this was looking like an xbox world.

Now it is a real fight against her absolutely, and i will be watching it -- a real fight

This text has been automatically generated. It may not be 100% accurate.

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