Microsoft (NASDAQ:MSFT) is racing to expand its massive gaming platform in the face of growing competition from Google and Amazon, as well as the upcoming console battle with Sony (NYSE:SNE), notes Loup Ventures.

The research firm says MSFT is also putting gamers first with its Xbox strategy, including having new games released in the next few years be available on both the Xbox One and the upcoming Series X. Notably, all Xbox Game Studios titles launch into Xbox Game Pass and Halo Infinite will establish itself as a live services game with a free multiplayer feature. Pricing is also being looked at hard by Redmond.

“While a price point hasn’t been announced for the Series X yet, we anticipate the console’s pricing to be favorable to gamers. The company may hold out as long as possible before sharing a price as they’ll want to match or undercut Sony’s PlayStation 5 pricing. With the last generation of consoles, Microsoft struggled with consumers due to its $100 higher price point. For the upcoming launch, Microsoft can leverage its cloud business to subsidize the hardware cost to gamers, something Sony isn’t able to do.”

On the fundamental side of things, Microsoft scores a Quant rating of Very Bullish and is the third highest ranked stock in the information technology sector out of 518 names.

Microsoft is one of the stocks listed in Seeking Alpha’s Catalyst Watch for the week ahead.


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