Microsoft (NASDAQ:MSFT) had a brilliant week last week with its fantastic summer showcase and a huge array of game releases. It promptly came back to Earth this week with Google (NASDAQ:GOOG) firing allegations of anti-competitive behavior at it, more regulators taking aim at its Activision-Blizzard (NASDAQ:ATVI) acquisition, and now, some trouble around Xbox. Microsoft finished down in today’s trading, and the news about new price hikes on the Xbox Series X and the Xbox Game Pass system didn’t help.
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The hike in Xbox Series X prices won’t be universal. Rather, many of Microsoft’s top markets—the United States, Japan, Brazil, Chile, and Colombia—won’t see any price hikes at all, which is great news if you’re still trying to find an Xbox Series X amid all the supply chain problems we saw as far back as 2020. However, most of Europe, Australia, and even Canada, expect price hikes to hit soon. Nevertheless, the Xbox Series S will remain at its comparatively low price.
Meanwhile, the Xbox Game Pass—whose price tag hasn’t changed since 2017—will see its price jump from $9.99 to $10.99. Game Pass Ultimate, meanwhile, will rise from $14.99 to $16.99 per month. The moves are “…intended to match local market conditions,” according to word from Microsoft. This is somewhat odd, as local market conditions in many places are “cutting back on non-essentials.” As much as some gamers might insist otherwise, Game Pass is not an essential. That might do some damage to Microsoft going forward, but perhaps, not enough to be of much consequence. Losing a million dollars off a billion-dollar operation is the most trivial of losses, even if, objectively, it’s a big hit.
Regardless, Microsoft remains a strong player. Considered a Strong Buy by analyst consensus, that figure is comprised of 30 Buy ratings, four Holds, and one Sell. However, with its average price target of $347.12, it can only offer a trivial 4.07% upside potential.
