Both Nintendo (NASDAQOTH: NTDOY) and Sony (NYSE: SNE) are seeing success from a thriving video game industry. Nintendo's Switch is exceeding many analysts' expectations with strong sales, and Sony's Playstation 4 (PS4) console continues to dominate the console war against archrival Microsoft. We're going to take a look at the investment case for these two Japan-based technology companies to determine which is the better buy.
Sony's Playstation 4 is winning the console war. Image source: Pixabay.
Sony is involved in various business segments: music, motion pictures, smartphones, televisions, image sensors, game consoles, and even financial services. This makes Sony seem daunting to understand, but the heart of the investment case boils down to its entertainment segments, particularly music and gaming. In recent years, management has been downsizing poorly performing business lines, such as smartphones and cameras, in order to focus on the potential it has with gaming and music, where it has seen the most consistent growth.
Source: Fool.com