Count Goldman Sachs analyst Takashi Watanabe as being pessimistic on
the PlayStation 4’s chances for success.
Per Business Insider, Watanabe has penned a new research note that casts doubt not only on
Sony’s (
SNE) new console specifically, but on the gaming console business as a whole. Specifically, Watanabe thinks that smartphones and tablets are poised to erode consoles’ installed base because more people can get their gaming fix through cheap games such as Angry Birds and Cut the Rope rather than spending $60 to buy the latest version of Call of Duty. This lower installation base leads to negative reinforcement where developers are less likely to invest in developing top-notch games for the platform, which further erodes consumers’ willingness to shell out cash for the console.
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