SONY vs. MSFT vs. NTDOF: Video Games Have a Storage Problem Thanks to AI

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The video game industry could suffer as gamers struggle to find storage options for their consoles and PCs. The price of data storage options, such as hard drives and microSD cards, has increased exponentially over the past few months. This is due to the ongoing artificial intelligence (AI) boom, which has stressed supplies of various PC components and other technology.

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This is bad news for Sony SONY -2.41% ▼ , Microsoft MSFT +0.77% ▲ , and Nintendo NTDOF -4.08% ▼ , as it could limit game sales on their respective platforms. The need for space to install games means gamers sometimes need to purchase additional storage space. However, that’s become a more expensive practice thanks to increased data storage prices. Nintendo is particularly affected by this as its Switch and Switch 2 utilize microSD cards. These are easily switched out, allowing for quick swapping between stored games, compared to the more involved process of changing the SSDs in PlayStation and Xbox consoles.

AI hasn’t just caused problems for console gamers. PC gamers have also suffered due to the tech. Prices for just about every PC component have surged due to the demand caused by the AI boom. This has even affected major players in the space, such as Valve, which plans to release its home console rival Steam Machine this year. The price of this prebuilt PC might end up being higher than expected as a result of the AI boom.

Video Game Stock Movements Today

Here’s how video game stocks have moved on Thursday.

  • Sony stock was down 2.46% this morning but was still down 16.27% year-to-date.

  • Microsoft stock jumped 0.35% today but was still down 15.97% since the start of the year.

  • Nintendo stock has fallen 1.22% as of this writing but was still down 17.14% year-to-date.

SONY vs. MSFT vs. NTDOF: Which Video Game Stock Do Analysts Prefer?

Turning to the TipRanks stock comparison tool, traders can see which of these video game stocks analysts favor. Microsoft stock has the best consensus rating at Strong Buy, compared to Moderate Buy ratings for Sony and Nintendo. However, NTDOF stock has the highest upside potential at 54.5%, followed by SONY at 49.29%, and MSFT at 46.23%.

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