Robert W. Baird predicts Microsoft's console may be more readily available, though supply for both likely to be "constrained."

The Xbox One may have two to three times more launch units than the PlayStation 4 this holiday, according to Robert W. Baird analyst Colin Sebastian.

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 potential shortages. His estimations are based on supply chain checks.

Sebastian also said the tides are turning for Microsoft, following its dramatic policy reversal last month 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 Pikmin 3 (August), The Legend of Zelda: Wind Waker HD (October), Donkey Kong Country: Tropical Freeze (November), and Super Mario 3D World (December).

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