The great thing about tech giant Microsoft (NASDAQ:MSFT) is how remarkably diversified it is. Cloud computing, office tech, personal computers, and gaming under one roof. This helps Microsoft absorb shocks in any one market by having several others working at any given time. But there are signs that its role in gaming is about to change, and that’s giving investors just a little reason for hope, as shares were up fractionally in the closing minutes of Wednesday’s trading session.
A recent interview with Dametra Johnson-Marletti, who serves as vice president of digital gaming at Microsoft, spelled out some of the changes to come. Microsoft is working specifically to emphasize consumer choice, bringing in a “comprehensive gaming ecosystem” that’s allowing customers to play games on mobile devices, PCs, Xbox consoles, or in the cloud.
Microsoft will also put more effort into “strategic partnerships,” like with TV makers, that allow for more consumer options.
Cloud Gaming Patent
Recently, a patent emerged for a console completely geared toward cloud gaming. Dubbed Project Keystone, the console would have been a one-stop shop for Microsoft Cloud access and would have been available for close to $100 back in 2021. Keystone was ultimately killed, and the team pivoted to the smart TV streaming app.
Meanwhile, there are reports that the planned arrival of “Grand Theft Auto 6” will have ramifications on the entire Microsoft slate. With that widely-anticipated game set to hit this fall, assuming no delays, many planned games like “Doom: The Dark Ages,” “Fable” and the “Perfect Dark” reboot may find themselves pushed back to not compete with “Grand Theft Auto 6.”
Is Microsoft a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 36.07% rally in its share price over the past year, the average MSFT price target of $500.71 per share implies 10.8% upside potential.
