Microsoft is an important player in the games industry and benefits from this effect. This section could be further improved with the launch of the new Xbox next week. But the game is certainly not the most important Tailwind, but Microsoft’s cloud product.
The company’s cloud services have been the main driver of growth. MSFT increased sales in this segment by 31%. Xbox Series X uses Advanced Macro Devices’ 7-nanometer (nm) AMD technology, based on an 8-core CPU with Zen2 architecture. It is equipped with an RDNA2-class GPU that offers a processing capacity of 12 teraflops. The X series also offers 16GB of high-bandwidth GDDR6 memory and NVM SSD, providing 1TB of internal storage capacity.
There is also an additional memory expansion card for 1 TB. The Xbox Series S, on the other hand, supports 1440p resolution up to 120 FPS and supports 4K upscaling of the game. It also has 512MB of NVME SSD memory. The specs seem darker than the flagship Xbox Series X. However, with the introduction of cheaper consoles, it seems Microsoft is trying to attract casual gamers who don’t spend gamers on high-end consoles.
Azure is already Microsoft’s leading growth engine, and CEO Satya Nadella, who studies the great advances in cloud computing services, is the smartest business decision. With the need to work from home significantly increased demand, many enterprise customers have changed or accelerated their investments in the cloud.
Gaming Industry: The new driver of MSFT
MSFT’s long-awaited next-generation Xbox console from Microsoft Corporation is available in retail stores around the world. Both Xbox X and Xbox S models are priced at $ 499 and $ 299 respectively.
With the global launch of the next-generation Xbox console, Microsoft aims to increase its market share in video game consoles over competitors such as Sony Corporation SNE. Interestingly, the launch of the new Xbox console precedes the release of Sony’s PlayStation 5, which could help gain market share. MSFT stock price expects revenue growth of 8.9% for the quarter ending December 2020 and 10.6% for the quarter ending March 2021. The company’s EPS is expected to increase by 8.6% for the quarter finished in December 2020. 14.5% per annum for the next 5 years. Microsoft has made major improvements to its next-generation console to enhance the gaming experience. Both the Xbox Series X and Series S consoles incorporate the latest hardware-accelerated DirectX Late Racing (XDR) features to deliver an enhanced audio and video experience for the next generation of gamers. The company’s operating income increased by 25% year-over-year. For these good fundamentals, MSFT stock price is attractive even after growing so much in 2020. If you plan to buy this stock, you can check its cash flow at https://www.webull.com/cash-flow/nasdaq-msft.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.