Microsoft Unveils Xbox Series S Gaming Console At $299

Microsoft announced its next-generation gaming console, Xbox series S, via its official Xbox Twitter account.

Software giant Microsoft (MSFT) has confirmed that it will release its series S, which is the “smallest Xbox ever,” alongside its forthcoming Xbox series X, which will arrive in November. The retail price of the new version of the console will be $299. The company’s post confirmed the small design of the console, which also includes a large circle cut into its side. Further, it will not include a disc drive, unlike series X. The company said it will share other details soon.

Separately, the US Defense Department (DoD) last week completed a comprehensive review of its $10 billion JEDI cloud computing contract proposals, won by Microsoft in October. The DoD said that Microsoft’s offering represents the best value to the government. (See MSFT stock analysis on TipRanks).

Wedbush analyst Daniel Ives maintained a Buy rating on the stock with a Street-high price target of $260 (21.4% upside potential), saying that the contract is a “game changer” and would have a “ripple effect for the company’s cloud business for years to come and speaks to a new chapter of Redmond winning in the cloud vs. Amazon in our opinion on the next $1 trillion of cloud spending expected to happen over the next decade.”

Currently, the Street has an optimistic outlook on the stock. The Strong Buy analyst consensus is based on 26 Buys and 3 Holds. The average price target of $229.52 implies upside potential of 7.1% to current levels. Shares have gained 35.9% year-to-date.

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