Microsoft (NASDAQ:MSFT) is one of the largest players in the gaming console market with the Xbox 360, which competes with the Sony (NYSE:SNE) Playstation 3 and the Nintendo Wii. It also operates the Xbox Live online gaming network through which it offers online multi-player gaming and digital downloads of games and other content. Microsoft announced that it was adding additional social and video features to Xbox Live in the next update. [1] It has added a new social section to Xbox Live, which allows users to check what their friends are up to, messages from them, their current status, and which games they have been playing. It has also added a new Beacons feature using which gamers can indicate which games they are interested in, and automatic alerts if any of their friends set a beacon for the same game.
Check out our complete analysis of Microsoft
Besides that, Microsoft also announced that it was adding a new video section to Xbox Live which lets users browse the entire Zune video catalog and purchase and download movies and TV shows on their Xbox 360, Windows Phone or Zune media player.
Microsoft’s Entertainment and Devices division has been showing impressive growth in revenue in the last few quarters, boosted by the high popularity of the Kinect motion gaming add-on which has been driving Xbox 360 sales too. Xbox currently has less than 20% market share in the gaming console market, but we expect it to increase significantly throughout the forecast period, at the expense of its competitors like the Sony Playstation 3 and the Nintendo Wii.
Xbox & Zune currently accounts for nearly 8% of our $32 Trefis price estimate for Microsoft, which stands nearly 20% above our current market price.
Understand How a Company’s Products Impact its Stock Price at Trefis
Notes:- Xbox.com: Enhanced! New Social & Video Sections, Xbox Forums [↩]
