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MSFT Teams Up with NTES to Relaunch Games in China
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MSFT Teams Up with NTES to Relaunch Games in China

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Microsoft and NetEase are coming together to relaunch popular gaming titles in China.

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Tech giant Microsoft (NASDAQ:MSFT) has renewed its publishing deal with the Chinese Internet technology company NetEase (NASDAQ:NTES) (HK: 9999). Under the renewed deal, Blizzard Entertainment, a subsidiary of Activision Blizzard acquired by Microsoft in October 2023, and NetEase are working on the relaunch plan of its popular gaming titles. This partnership signifies a return to producing video games in China, a venture previously undertaken by both NetEase and Activision Blizzard.

The renewed deal covers Blizzard’s renowned games, such as World of WarcraftHearthstone, and other titles from its top gaming franchises. Both companies have worked together for 15 years.

Separately, Microsoft said that it will bring new gaming titles from NetEase to Xbox consoles and other platforms. 

MSFT’s Gaming Soars After Activision Deal

Microsoft’s focus on content and the addition of Activision significantly boosted the company’s Gaming segment. During the Q2 conference call, MSFT’s leadership said its monthly active users surpassed 200 million. The acquisition of Activision Blizzard has considerably expanded Xbox’s gaming ecosystem, adding millions of gamers to its platform. 

MSFT’s Gaming revenue increased by 49% year-over-year in Q2, driven primarily by the acquisition of Activision Blizzard. However, hardware revenues continue to remain a drag.

What is the Prediction for Microsoft Stock?

Microsoft stock has gained about 49% in one year. This growth stems from the company’s growing artificial intelligence (AI) capabilities and the integration of the technology into its offerings. 

Analysts maintain a bullish stance on MSFT stock. It has 33 Buys, one Hold, and one Sell for a Strong Buy consensus rating. Analysts’ average price target on MSFT stock is $473.77, implying 11.14% upside potential from current levels.

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