Microsoft Investors Shouldn’t Expect Too Much From Xbox Series X – InvestorPlace

Microsoft Investors Shouldn’t Expect Too Much From Xbox Series X – InvestorPlace

With Microsoft’s (NASDAQ:MSFT) Xbox Series X video game showcase on July 23, investors were hoping to get an eye for what the next generation of console gaming might entail. They were hoping for jaw-dropping graphics and mind-bending exclusive games that would help set Microsoft’s console apart from its key gaming competitors Sony (NYSE:SNE) and Nintendo (OTCMKTS:NTDOY). Investors were also hoping for a reason to further justify the case for MSFT stock as a video game play.

Image of corporate building with Microsoft (MSFT) logo above the entrance.

Source: NYCStock / Shutterstock.com

Unfortunately, the video game showcase manged to dispel much of the initial hype behind the console heading into its holiday-season debut. Within the two-day span after the showcase, MSFT stock fell nearly 5%.

The reasons for this disappointment are nuanced, but to summarize the complaints, the graphics were underwhelming and the number of true, AAA “next generation” titles was minuscule.

Specifically, gamers lambasted the bland visuals for its premier title, Halo: Infinite. Although this is only one game, the Halo series has long been the ace up Microsoft’s sleeve. Those exclusive games often could justify purchasing its consoles over Sony’s PlayStation systems.

The fact that it failed to impress also diminishes some people’s faith that next-generation consoles offer a huge leap in power from previous generations. While this critique might be shortsighted — the truly stunning games often come as a console matures — it certainly
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