Microsoft, a behemoth in the tech industry, is holding steady in the final moments of Tuesday’s trading session despite emerging reports hinting at challenges in its gaming division that may potentially cast a shadow over its stock performance in the future.
The first signs of trouble for Microsoft surfaced with revelations surrounding the Xbox Series X hardware refresh. While this anticipated release is slated for later this year, cleverly timed for the festive Christmas season, two significant hurdles stand in its way: the hefty $600 price tag and a notable absence of substantial hardware upgrades. The sole silver lining appears to be the introduction of a two-terabyte storage option.
Adding fuel to the fire are concerns tied to the gaming library. Notably, a number of titles are defecting from Xbox to PlayStation – a defection involving at least four games. Additionally, issues with securing exclusivity on the Xbox platform are coming to the fore. Recent reports indicate that “Indiana Jones and the Great Circle” will now only enjoy a temporary exclusivity window, whereas “Black Myth: Wukong” is delayed till December on Xbox due to dilemmas related to split-screen co-op functionality.
As former exclusive titles shift to timed exclusives and marquee releases face significant delays due to functionalities that were expected to be standard, the burning question that lingers is when will the compelling games finally make their grand entrance. In essence, the dark clouds looming over Microsoft’s gaming division paint a gloomy picture for the company as a whole.
Assessment of Microsoft’s Investment Potential
Analyzing opinion on Wall Street, a consensus of Strong Buy ratings has been conferred on MSFT stock, backed by a tally of 31 Buy recommendations furnished over the past three months, as illustrated below. Following a commendable 32.84% surge in its stock price over the last year, the average target price for MSFT stands at $504.23 per share, reflecting an enticing 18.71% upside.
