Sony (NYSE: SNE) and Microsoft (NASDAQ: MSFT) launched the PS4 and Xbox One, respectively, in late 2013. Sony subsequently shipped 106 million PS4s, according to Vgchartz, while Microsoft remained the underdog with 46 million Xbox One shipments.
Yet both companies struggled with slowing hardware sales in 2019, as their aging consoles matured and gamers postponed their purchases in anticipation for next-gen consoles. That's why Sony and Microsoft's gaming revenues fell 17% and 7% year-over-year, respectively, in their latest quarters.
That drop matters more to Sony, which generated 21% of its sales from its gaming unit, than Microsoft, which relied on gaming for just 8% of its sales. Nonetheless, both companies are investing heavily in their next-gen gaming consoles -- the Xbox Series X and the PS5 -- which are set to arrive during the holidays this year. Let's examine both devices to see which company has the upper hand.