Microsoft could soon finish developing the next big thing in gaming.
Some on Wall Street haven’t appreciated Microsoft’s gaming potential, according to Morgan Stanley analyst Keith Weiss.
The gaming business is seeing a shift away from hardware and into software and streaming, which is in Microsoft’s wheelhouse.
That puts Microsoft on the path to becoming a $1 trillion company.
Watch Microsoft trade in real time here.
Wall Street is throwing around guesstimates of when Microsoft will become a $1 trillion company, but there’s one catalyst many aren’t considering that could help catapult the tech behemoth to that level: Microsoft’s promising gaming business.
“We see Microsoft building out the ‘Netflix of Gaming,'” Morgan Stanley analyst Keith Weiss wrote in a note out to clients. “We think that gaming has historically been largely ignored, misunderstood, and undervalued by analysts and investors.”
Jefferies analyst Timothy O’Shea also recognizes that Microsoft is on the verge of developing a new and explosive gaming businesses.
“Google, Amazon and Microsoft are all working on cloud-based, streaming video game platforms designed to compete with PlayStation and Xbox, and these could launch before the end of the decade,” he wrote. “These services would expand the addressable market by at least 4x and would be available on all screens including TVs, laptops, tablets and smartphones.”
And Weiss agrees with how Microsoft is set to capitalize on the shift in the industry.
“With the gaming ecosystem expanding from the console to the PC and Mobile device, a shift from hardware and one-time video game sales to subscription services, and a future which includes streaming, broadcasting, and mixed-reality, we see Microsoft well positioned for the future of Gaming,” he wrote.
Newzoo market-intelligence data shows that mobile gaming leads the entire gaming market. Mobile saw a 19.3% year-over-year first-quarter revenue increase in 2017, with consoles growing …read more
Source:: Business Insider