Microsoft (MSFT) stock was up on Monday after the tech company addressed rumors that it planned to exit the console wars. According to these rumors, the Xbox Series X/S would be the last physical consoles made by the game developer, as it switches to an all-digital strategy focused on Xbox Game Pass.
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However, Microsoft has rejected these rumors and reports. In a statement to Windows Central, Microsoft said, “We are actively investing in our future first-party consoles and devices designed, engineered and built by Xbox. For more details, the community can revisit our agreement announcement with AMD.” Microsoft and Advanced Micro Devices (AMD) have an agreement that has AMD developing technology for use in Xbox devices, such as the ROG Xbox Ally set to be released later this month.
It’s understandable why some reports would suggest that Microsoft has lost interest in the physical console market. The Xbox Series X/S hasn’t performed well, which resulted in the company switching to a cloud focus this generation. That includes its Xbox Play Anywhere initiative, which allows consumers to play their games across a wide array of devices. It’s also been less strict with exclusives, launching many first-party titles on Sony (SONY) and Nintendo’s (NTDOF) consoles.
Microsoft Stock Movement Today
Microsoft stock was up 1.04% on Monday, extending a 24.84% year-to-date rally. The shares have also increased 26.32% over the past 12 months. However, these gains are more related to its AI endeavors than its Xbox gaming unit.
Is Microsoft Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Microsoft is Strong Buy, based on 34 Buy and a single Hold rating over the past three months. With that comes an average MSFT stock price target of $628.05, representing a potential 20.17% upside for the shares.
