PlayStation 4 Sells Twice as Much as Xbox One in January

Now that the launch hype for the Sony (NYSE: SNE  ) PlayStation 4 and Microsoft(NASDAQ: MSFT  ) Xbox One has begun to settle, it's possible to gain a clearer picture of the momentum behind each system. Despite being largely similar in terms of available software and hardware architecture, the two consoles were put forth with largely differing product visions. The Xbox One was introduced with a substantial focus on media features and television integration. Meanwhile, the PlayStation 4 was positioned mostly as a dedicated gaming device from the get go. The most recent sales data out of North America suggests that one of these approaches is finding much greater

success than the other.

North American hardware tracking by industry research company NPD Group shows that the PS4 outsold the Xbox One by an approximate 2:1 margin in January. Sony's system has also been enjoying a substantial momentum advantage in Europe. What does this data suggest for the latest round of the console wars? Will Microsoft be able to reverse these trends and solidify its bid for market leadership?

PlayStation 4 explodes out of the gateAt the end of 2013, Sony had sold 4.2 million PS4s to consumers while Microsoft had sold 3 million Xbox One consoles. Interestingly, Microsoft's system posted the best North American numbers in December. Sony's statements indicate that it is still selling close to every system that it manufactures, while reports suggest that the Xbox One is much easier to find. As such, it's possible that Microsoft's December advantage had a lot to do with the PS4 being supply constrained.

Xbox One's price problemThe most recent NPD tracking is a worrying sign for Microsoft and an indication that it will need to take drastic action in order to compete with Sony's latest console. The $100 price difference must be viewed as a driving force behind the sales lead that the PlayStation 4 is building. Both systems have similar third-party lineups alongside quality (but not blockbuster) first-party titles. Exclusive content will play a larger role in driving consumer purchases after the launch windows, but it's not as though the choice between Sony's Killzone: Shadowfalland Microsoft's Ryse: Son of Rome is a major factor at this stage.

A large lead in a small monthEstimates based on Microsoft's PR put sales of the Xbox One at approximately 140,000 units for the month. Obviously, this would put the PlayStation 4 somewhere in the neighborhood of 280,000 units sold in the same time period. These numbers look pretty weak coming off of the explosive holiday season, but January is typically a slow sales month and both systems carry substantial price tags.