Xbox's Struggles and Microsoft's Stock Dip
Xbox's Struggles Against Rivals
Microsoft's stock recently took a hit, with one major factor being the Xbox division's poor sales. The latest report showed a 30% drop in Xbox console sales compared to last year. This decline isn't surprising, as Xbox has been struggling against its rivals, Sony and Nintendo, for some time now.
Xbox Series X|S Underperforms
The Xbox Series X|S hasn't been doing well. In fact, it's selling even worse than the original Xbox did. This is significant because the original Xbox had to compete with the PlayStation 2, which remains the best-selling console ever.
Microsoft's Response
Due to these struggles, Microsoft has made some changes:
- Raised the price of the Xbox Series X|S and the Xbox Game Pass subscription.
- Decided to make their games available on other platforms, not just Xbox.
Fears of an End Like Sega
Some are worried that Xbox might end up like Sega, which stopped making consoles in 2001. Ironically, Sega's failure helped Microsoft enter the gaming market with the original Xbox later that same year.
Stock Performance
Microsoft's stock was down 3.28% on a recent Thursday, but it's still up 24.95% for the year. The stock has also increased 33.27% over the past year, partly due to the AI boom.
Analysts' Outlook
Wall Street analysts have a "Strong Buy" rating for Microsoft, with an average price target of $633.05. This suggests a potential 21.09% upside for the shares.
