Why Microsoft Corporation (MSFT) Should Definitely Keep the Xbox

We recently reported about rumors regarding Microsoft Corporation (NASDAQ:MSFT)’s possible new CEO and how some were considering giving Xbox the axe. And the gossip wheel is still spinning, so today, on the Xbox One launch date, it’s time to cast a realistic look upon the game console and decipher why Microsoft should really hold on to it.

Microsoft Corporation (NASDAQ:MSFT)

Long term > short term

When it comes to investments in the technology and gaming market, sometimes the results aren’t immediately visible. This is exactly the case of Microsoft Corporation (NASDAQ:MSFT)’s investment in the Xbox One. Although some may argue that it distracts management from Microsoft’s rapidly-growing cloud-computing business, the gaming industry is no poor man’s abode. According to the tech giant’s vice president of strategy, Yusuf Mehdi, one can expect a more than $10-billion boost in the gamers’ market between now and 2017. So, keeping the gamers on your side with the Xbox One and expanding its features can only help Microsoft get a piece of the pie.

Groupies good

One thing that’s undeniable about Microsoft Corporation (NASDAQ:MSFT)’s Xbox is that it has a huge fan base. Ever since Bill Gates first introduced the console in 2000 as a counterweight to Sony Corporation (ADR) (NYSE:SNE)’s Playstation, people have made a point of picking a side and then sticking to it. And when it comes to the Xbox, that side is rather large: more than 80 million people worldwide have sold their Xbox 360, freeing up the market for new Microsoft acquisitions and platforms like Skype or Bing. Although Xbox fans may not reach Windows proportions (1 billion users), the brand is still one of the most enticing that Microsoft has ever had. And sometimes, when you have loyal followers, even certain technical mishaps can be forgiven.

New and fun does the trick

Now, what’s a game console without the proper gaming material? Nothing. So, while we’re on the bright side of things, let’s not forget that Microsoft Corporation (NASDAQ:MSFT) has exclusive games that you can only play with the Xbox One. This certainly sets gamers apart, giving them the status of elite gamers. Some of these long-awaited titles are Halo, Ultimate Fighting Championship, Kingdom Hearts and Quantum Break. But apart from giving Xbox users a special feeling, Sony Corporation (ADR) (NYSE:SNE)’s PS4 competitor is also a step ahead regarding innovation. The voice and gesture recognition of the Kinect sensor is no joke, and although it might always work perfectly, it’s still an above-average accessory.



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