Xbox & Kinect Pick up Momentum; Windows & Office Still Microsoft’s Cash Cows
Microsoft’s (NASDAQ:MSFT) stock has gyrated in the past week due to wobbly markets and a series of positive developments related to the Xbox, Windows and Office, which could boost its bottom-line in the coming years. We provide a quick look at some of the significant developments which could impact Microsoft’s stock price going forward.
Check out our complete analysis for Microsoft
Xbox, Xbox Live and Kinect
- Up Nearly 70% Since The Beginning Of 2023, Where Is Microsoft Stock Headed?
- Up 63% Since The Beginning Of 2023, How Will Microsoft Stock Trend After Q2 Earnings?
- Microsoft Stock Is Up 45% YTD And Outperformed The Consensus In Q1
- Microsoft Stock Outperformed The Expectations In Q4
- Microsoft Stock Is Fairly Priced At The Current Levels
- What To Expect From Microsoft Stock In Q3?
In the last week, Microsoft’s focus has been primarily on the Xbox, Kinect and Xbox Live. Microsoft will launch the Kinect for Windows 8, and has already launched a startup accelerator to fund Kinect app development. It is also working on the next version of the Kinect add-on – the Kinect 2 – which will offer advanced features like improved motion sensing, voice recognition capabilities, facial characteristic recognition as well as TV integration.
It also announced that it sold nearly a million Xbox 360 consoles in the week surrounding Black Friday and close to 750,000 Kinect units. Finally, it also launched the biggest update to Xbox Live, bringing Live TV, movies, TV shows, music and other streaming content to the online gaming network.
Windows & Office
Microsoft revealed that it was working on the next version of Office – Office 15 – and would launch a beta version in early 2012, with the final launch scheduled for 2013. It also rolled out a major upgrade for Office 365, its cloud based office suite, and added a lot of new features including sharing support with SkyDrive, support for mobile platforms like Windows Phone 7.5 and social network integration, which should help it compete with Google (NASDAQ:GOOG) Docs. Rumors also suggest that Microsoft will launch Office apps for iOS, the largest tablet platform.
Microsoft is slated to launch Windows 8 in 2012, and announced that it will launch the public beta of Windows 8 in February 2012. It also unveiled the Windows 8 App Store, its online application marketplace for apps and games for Windows 8. It will be undercutting Apple‘s (NASDAQ:AAPL) Mac App Store, by taking a lower cut from developer sales, in order to attract more developers.
Windows and Office are Microsoft’s two largest businesses and account for nearly 55% of its Trefis price estimate while Xbox, Kinect & Zune account for 8%.
We currently have a $32 Trefis price estimate for Microsoft, which stands nearly 25% above its current market price.
Understand How a Company’s Products Impact its Stock Price at Trefis