Xbox One may have "a 2-3x unit advantage" at launch over PS4 - analyst

Robert W. Baird and company analyst Colin Sebastian has stated in his latest investor's note that Xbox One seems to be riding the momentum train at retail.

Along with topics covering upcoming financial releases such as EA, Take-Two and Activision, Sebastian noted that gutting the DRM policy on the new Microsoft console has done wonders for the upcoming system.

"Despite losing the headline battle at E3, Microsoft's Xbox One appears to be regaining some momentum, in part due to the used and online policy tweaks," he wrote. "Importantly, our supply chain checks suggest Microsoft may have the benefit of a 2-3x unit advantage at launch compared to Sony's PS4."

The analyst expects both PS4 and Xbox One to have launch shortages and he also noted that Microsoft is "working with channel partners to lessen the gap," between the consoles' pricing - there's a $100 difference between it and PS4.

Sebastian also said he felt Wii U needed a price cut in order to be competitive and "the fate of the platform" rests on Nintendo's holiday software lineup.