In a note to investors today, he said this superior launch allocation would give Microsoft an initial advantage, but noted supply for both next-generation systems will likely be "constrained," leading to . His estimations are based on supply chain checks.

Sebastian also said the tides are turning for Microsoft, following its that saw the company roll back various controversial features.

"Despite losing the headline battle at E3, we believe that Xbox One has regained some momentum in recent weeks, in part due to modifications in policies related to online connectivity and used games," Sebastian said.

Sebastian also discussed the prospects for the Wii U, saying its suite of holiday titles will make or break the system.

"Nintendo's Wii U remains challenged, needs a price cut, and the fate of the platform will likely rest on the popularity of Nintendo's holiday software lineup," he said.

High-profile first-party Wii U games due out this year include (December).

From: www.gamespot.com

Speaking with GameSpot, the analyst said due to the "complexity" of coordinating the launches, "it is more likely than not that there will be initial shortages."

"This also partly explains why the manufacturers have been somewhat judicious is allocating pre-sale units to retailers, so that there won't be a lot of unhappy customers from day one," Sebastian said.

As for which platform will debut on the market first, Sebastian didn't have a projection to give, but said the system that does go first will enjoy some advantages.

"From a timing perspective, both platforms will want to launch before Thanksgiving/Black Friday, and ideally at least a couple of weeks in advance of that in order to replenish the retail channel," Sebastian said.

"In terms of who goes first, it would be certainly be ideal to launch first, and gain all of the initial attention and momentum, as console launches are really the only equivalent of a 'red carpet' event for the industry," he added.

The is confirmed only for holiday 2013.

Expectations for both systems are high, with Ubisoft saying yesterday that some retailers have .

Representatives for Sterne Agee and Cowen & Company could not be reached for comment on Xbox One and PS4 releasing timing, while analysts at Wedbush Securities and EEDAR declined to comment.

From: www.gamespot.com

Speaking with GameSpot, the analyst said due to the "complexity" of coordinating the launches, "it is more likely than not that there will be initial shortages."

"This also partly explains why the manufacturers have been somewhat judicious is allocating pre-sale units to retailers, so that there won't be a lot of unhappy customers from day one," Sebastian said.

As for which platform will debut on the market first, Sebastian didn't have a projection to give, but said the system that does go first will enjoy some advantages.

"From a timing perspective, both platforms will want to launch before Thanksgiving/Black Friday, and ideally at least a couple of weeks in advance of that in order to replenish the retail channel," Sebastian said.

"In terms of who goes first, it would be certainly be ideal to launch first, and gain all of the initial attention and momentum, as console launches are really the only equivalent of a 'red carpet' event for the industry," he added.

The is confirmed only for holiday 2013.

Expectations for both systems are high, with Ubisoft saying yesterday that some retailers have .

Representatives for Sterne Agee and Cowen & Company could not be reached for comment on Xbox One and PS4 releasing timing, while analysts at Wedbush Securities and EEDAR declined to comment.

From: www.gamespot.com