After a Worrying Period, Microsoft's Stock Looks Safe for Now After Xbox Announcement
Xbox Series X/S sold 7.6 Million units last year combined.
In the highly competitive gaming industry, Microsoft's Xbox has had a challenging journey. Last year, the Xbox Series X/S failed to outshine its rival, the PlayStation 5, in terms of sales. However, the recent announcement from Microsoft's Xbox executives during the official podcast suggests a promising future for the gaming organization. Xbox President Sarah Bond expressed the company's focus on delivering groundbreaking hardware technology, signaling the possibility of a new console in the works. With the recent acquisition of Call of Duty publisher, Activision Blizzard, Microsoft is streamlining its gaming ecosystem and striving for stability. This combination of factors is expected to keep Microsoft's stock (listed as MSFT at NASDAQ) away from turbulence.
PlayStation 5 sold just three times more than Xbox Series X/S.
Despite being a strong player in the gaming industry, Sony, the maker of PlayStation, is also eyeing growth in sales. Naomi Matsuoka, a senior vice president at Sony, predicts a decline in console sales for the fiscal year starting April 2024. In 2023, Sony sold 22.5 million units globally, which is more than three times the combined sales of Xbox Series X/S. Given this competition, both Microsoft and Sony are likely to make efforts to outshine each other by introducing new additions to their console lineup.
Microsoft Stock Appears in a Safezone For Now
Since the announcement of the Activision deal, Microsoft's stock has shown impressive growth, adding 90 percent to its shares' value. As of the time of writing, MSFT stock is trading at $407.65 in the pre-market. Since the beginning of the year, the stock has gained over 10 percent in value. Long-term growth has been particularly positive for Microsoft, with shares increasing by 90 percent since the Activision Blizzard deal was announced. While the recent podcast announcements might impact stock performance, it's important to note that stock prices can be unpredictable. Indicators such as MACD and SMA do not currently suggest any upcoming positive momentum in the days or weeks ahead. Nevertheless, Microsoft is expected to launch exciting initiatives, such as adding Diablo IV to the Game Pass, where 34 million users will eagerly await the highly anticipated game from Blizzard Entertainment.
Analyst comment
Positive news: Xbox Series X/S sold 7.6 million units last year and Microsoft successfully completed the Activision Blizzard deal. The company executives promise a robust future for gaming endeavors.
Short analysis: With successful Xbox sales and the addition of Activision Blizzard, Microsoft’s stock is expected to remain stable and potentially see growth due to their strong position in the gaming market. However, stock prices are unpredictable in the short term.
