The world’s largest software maker Microsoft (MSFT) recently reported strong sales of its game console, Xbox One, launched in Nov 2013.
Recently, Microsoft slashed the price of Xbox One by $50 to $349, effective Nov 2. This price cut, which marked the second significant discount by Microsoft since the launch of the console, has helped the software giant to gain a price advantage against Sony Corp. (SNE) this holiday season. However, the cheaper version will not have the Kinect motion sensor for gesture and voice control.
The company stated that since the price cut, the sales figure of Xbox One consoles have more than tripled in the U.S. According to the company, more than 10 million Xbox One consoles have been sold to the retailers.
Apart from the price cut, Microsoft has undertaken several aggressive steps to woo back gamers, compete more effectively against Sony's PlayStation 4 and drive Xbox One demand. The company has been adding rich gaming features and new content to the console.
Recently, Microsoft released high-profile games such as the remastered collection of the popular Halo shooter series. Additionally, the company offered free copies of premier titles such as the next installments of the Assassin's Creed stealth series and military shooter Call of Duty with Xbox One units.
The lower pricing of Xbox One, blockbuster game releases and new bundles may have encouraged casual gamers thus driving Microsoft’s gaming market share. We believe the company’s recent efforts will continue to drive Xbox One sales in the upcoming holiday season.
Microsoft has a Zacks Rank #3 (Hold). Other stocks that have been performing well and are worth considering include Actuate Corporation (BIRT) and Advent Software Inc. (ADVS). All these stocks sport a Zacks Rank #1 (Strong Buy).
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