How Microsoft Is Planning to Gain Traction in the Console Segment
Microsoft launched Xbox One X on Tuesday
Microsoft (MSFT) was once a leader in the video game console market with the Xbox 360, but Xbox One hasn’t been so popular.
That said, the tech giant hopes to regain the lost ground through the Xbox One X, its latest console, which officially went on sale on Tuesday, November 7. The company has described it as the most powerful console available today. The Xbox One X will cost $499—twice the price of the Xbox One.
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Microsoft’s new console is built for 4K gaming. The console has a 4K Ultra HD Blu-Ray player and has a GPU (graphics processing unit), which could mean faster load times and smoother graphics.
Microsoft has a lot of ground to make up on Sony
Microsoft’s Xbox One X will go head-to-head with Sony’s (SNE) PlayStation 4, which is quite popular, with over 60 million units sold globally already. Microsoft doesn’t report its Xbox shipments anymore. In the quarter ended September 30, Microsoft reported overall gaming revenues of $1.9 billion—1% higher on a YoY (year-over-year) basis. The company said hardware sales fell 48%, nullifying its 21% gain in software and services.
Also, the PlayStation 4 costs only $399, and so the Xbox One X could underperform. The Xbox One X won’t come with a new version of the popular Halo game either, which might have offered an advantage.