Microsoft’s Xbox Live Brings Live TV, More Streaming Content & Kinect Voice Control
Microsoft (NASDAQ:MSFT), one of the largest software makers in the world, launched the Xbox 360 gaming console years ago, to compete with the Sony (NYSE:SNE) Playstation 3 and the Nintendo Wii. It also operates the Xbox Live online gaming network, which enables gamers to play games on their Xbox 360 with the friends. Xbox Live also offers a lot of social features and other content, which gives the Xbox 360 an edge over its competitors, and Microsoft announced the biggest updates to the Xbox Live network since its inception recently. The update brings a lot of new features to Xbox Live and aims to transform the Xbox 360 into a complete entertainment hub, with games, movies, TV shows, music and sports content. [1] With this move, Microsoft aims to compete with Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG), which are trying to enter the multi-billion dollar TV industry with their own TV offerings.
Check out our complete analysis of Microsoft here
Xbox & Zune and other devices account for nearly 8% of Microsoft’s $32 Trefis price estimate, which stands nearly 25% above its current market price. The Entertainment and Devices division has been Microsoft’s fastest growing business in the past couple of quarters, thanks to the success of the Kinect and Xbox 360.
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Microsoft Brings Live TV, Movies, TV Shows, Music and Much More to Xbox Live
Microsoft has launched a new user interface, inspired by the Metro UI in Windows Phone, for Xbox Live. It allows you to easily browse through the available content, and search for games, movies, TV shows, music and videos using the voice search feature powered by Bing and Kinect. Microsoft has also launched an Xbox companion app for Windows Phone, to control the Xbox remotely with your phone.
It has partnered with a series of streaming services and content providers like Hulu Plus, Last.fm, Netflix, Zune Music & Video and ESPN. It is also working with TV providers like AT&T U-verse TV in the U.S., TELUS in Canada, BSkyB in the U.K., CANAL+ in France, Vodafone Portugal, VimpelCom in Russia and FOXTEL in Australia enabling users to have full TV access on their Xbox.
We expect this move to generate a lot of revenue for Microsoft going forward by not only selling more Xbox Live subscriptions, but also boosting the sales of the Xbox 360 console and the Kinect add-on.
We expect the Xbox 360 to have around 19% share in the gaming console market in 2011, and expand its share to more than 26% by the end of the forecast period. You can see how any changes in the Xbox 360 market share over the years impact Microsoft’s stock price estimate by tweaking this chart.
Understand How a Company’s Products Impact its Stock Price at Trefis
Notes:- The Future of TV Begins Now on Xbox 360, Press Release [↩]