On January 18th, Microsoft surprised the world when it announced the acquisition of Activision Blizzard in a $68.7 billion deal. It was the largest deal in the history of the video game market. Publicly acclaimed titles such as Call of Duty, Overwatch, or World of Warcraft, became part of Microsoft’s game library. This had a great impact on the video game market, but it was not enough.
Now, Microsoft has decided to invest in the future of video games with its Xbox Cloud Gaming platform. The gaming division of the corporate giant has one of the most attractive content libraries for video game fans and the general public. However, not all potential customers have been able to try these games due to the high demand and the difficulties in getting a next-generation console, Xbox Series X.
This inconvenience led Microsoft to think of a prompt and effective solution. For this reason, the company decided to invest large sums of money in the development of its cloud gaming platform, Xbox Cloud Gaming. It seeks to achieve a product similar to Netflix. It will be an online platform accessible from multiple devices and in which you can enjoy the best titles offered.
This new platform would follow the footsteps of other companies that are already part of the cloud gaming business. For example, Alphabet’s Google Stadia and Nvidia’s GeForce Now. The main objective within the development of this service is to make its high-quality games more accessible and to have a wider audience by having development on a wider range of devices.
Currently, Microsoft has a service called Game Pass exclusively for gamers on Xbox consoles or PC’s on the Windows platform. Xbox Cloud Gaming would be the opening of Game Pass for the entire video game market. The platform is currently in beta. Undoubtedly, when the cloud gaming service is ready, and has keyboard and mouse support, the video game business will take off. What Microsoft is doing can be considered revolutionary and will probably change the industry.
Inside Wall Street, 27 specialized analysts were asked for an opinion on this particular topic. The recommendation to buy Microsoft stock was unanimous. Analysts see the multinational company as strong going forward and its evolution in the video game market. The average price target for Microsoft is $374.88, which implies a rise of 22.9%.
Will you invest in this company’s stock? Do you think that Microsoft’s main competitors, such as Sony and Nintendo, will respond with innovative ideas?
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