Tech giant Microsoft (NASDAQ:MSFT) is a lot of things, depending on who you ask: the primary backbone of personal computing, a leader in the cloud industry, and a whole lot more. It’s also one of the biggest names in gaming, and several items emerged today that didn’t contribute much to the share price. In fact, in the closing minutes of Wednesday’s trading, Microsoft was down fractionally.
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The first was an unexpected leak that was subsequently confirmed. Word emerged that “Call of Duty: Black Ops 6” would go live on Xbox Game Pass on day one for everyone who has a subscription therein. Early word emerged to suggest that would happen, though subsequent reports suggest it was unintentional.
However, Microsoft quickly stepped up and made it clear that the game would be a day-one release on Xbox Game Pass. This comes on the heels of another announcement that Microsoft would license the “Call of Duty” franchise to Sony (NYSE:SONY) for 10 years, giving it a full decade to work up a replacement.
Your Next Xbox Not Made By Microsoft?
We also knew a hardware refresh was in the works for the Xbox game console, not to mention the PlayStation 5’s likely upgrade to PlayStation 6 before too much longer. Both consoles turn four this year, after all, so the time for hardware upgrades is likely afoot. New reports suggest that Microsoft won’t be the only one building them. In fact, the next Xbox will be a “…Windows-based device that other manufacturers can make their own versions of.”
While that might seem distressing, Microsoft makes it clear that the next Xbox will represent “…the biggest technological leap ever in a generation.” Given the issues that cropped up with the Xbox Series X and S during the pandemic, such a move might not be a surprise. Throw in an increasing move toward digital game publishing, and there’s a certain sense to it. Only time will tell what it actually looks like, of course, but it’s still a disturbing scenario.
Is Microsoft Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 32 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 30.78% rally in its share price over the past year, the average MSFT price target of $491.90 per share implies 14.76% upside potential.
