The notion that, one day, there will no longer be a console, let alone a console war, likely doesn’t sit well with those of us who have seen several console wars. But now, we may be getting closer to just such an era of strange peace, as Sony (NYSE:SONY) recently announced a new deal with some decidedly non-console players. Investors were cautiously optimistic, though, and sent shares up fractionally in Tuesday afternoon’s trading.
The new deal between Sony Interactive Entertainment and NCSoft, best known for its MMO titles “Guild Wars” and “Lineage,” will bring the two together to “…collaborate in various global business fields.” By way of clarification, the deal also noted that they were both looking into “…a range of potential applications” as well as “strategic synergy.” A lot of business weasel for “not much,” so far, and given that no one gave away any numbers as to how much cash changed hands in order to make the deal happen, it’s still very early stage stuff as of yet. One key point, though: the deal is poised to push Sony beyond the console market and bring the PlayStation to a wider audience.
What Else is Sony Sitting On?
This deal doesn’t have much bite to it yet, but many are hoping that the deal will ultimately prompt a game set in the “Horizon: Zero Dawn” universe that features machines running amok and technologically savvy yet near-primitive humans attempting to control them. That could be a real winner for Sony, but that’s not all its got on hand.
It’s had a string of impressive Black Friday deals emerge around its various hardware, from cameras to televisions, and one new development in the Xperia line will likely be just as welcome as a “Horizon” MMO. The new, highest-end Xperia phone cameras will include a “unique digital signature,” which prevents the content shot with it from being used as digital fakes. That’s a huge plus in a society where artificial intelligence is increasingly making content.
Is Sony a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SONY stock based on two Buys assigned in the past three months, as indicated by the graphic below. After a 6.02% rally in its share price over the past year, the average SONY price target of $108 per share implies 23.74% upside potential.