This was a very exciting week for many technology companies, especially Microsoft (NASDAQ:MSFT), which had a strong showing at CES 2012. It was also a very eventful week for Zynga (NASDAQ:ZNGA). Despite its many new game launches and a couple of positive announcements, its stock was down around 5%.
Microsoft
There were two technology giants which hogged the limelight at CES 2012 – Microsoft and Intel (NASDAQ:INTC). Microsoft unveiled Kinect for Windows, which will be priced at $250. Given the success of Kinect for the Xbox, we expect Kinect for Windows to be a hit, and ring up billions of dollars in sales for Microsoft over the coming years. Microsoft also unveiled several new Windows Phones at CES, most notably the Nokia Lumia 900 and the HTC Titan II. Both are high-end devices which can stand up to the top Android devices in terms of specifications.
Microsoft also announced several new Ultrabooks with Intel. Most of them will run Windows 8 after it is launched in mid-2012. We expect Windows 8 to be one of Microsoft’s biggest releases in recent years.
In other news, Microsoft continues to sign Android patent licensing deals with major Android device manufacturers. It signed up a patent licensing agreement with LG, which will give it a licensing fee for every Android device sold. It now generates from over 70% of all Android devices sold in the U.S.
We have a $32 Trefis price estimate for Microsoft, which stands nearly 15% above its current market price.
Check out our complete analysis of Microsoft
Zynga
Zynga’s stock was thrashed this week as concerns mount of its ability to maintain growth for its games. It continued to launch new games on Facebook like Hidden Chronicles, and also launched Scramble with Friends on iOS. It also poached a key employee – Barry Cottle – from EA, one of its biggest competitors.
Next week, Zynga is launching a “Player Love Week”, to boost its mobile user base. It will be gifting virtual goods and items in all its iOS games to players.
We have a $10.20 Trefis price estimate for Zynga, which stands nearly 20% above its current market price.
