This Changes Everything at Microsoft

Microsoft's (NASDAQ: MSFT  ) Xbox is already the country's top seller when it comes to video game consoles, and die-hard gamers will get a glimpse at the software giant's new system on May 21. 

After a disappointing debut last year for Nintendo's (NASDAQOTH: NTDOY  ) Wii U and little buzz generated from Sony's (NYSE: SNE  ) recent PlayStation 4 unveiling event, it's up to Microsoft to turn the fortunes around for a once-booming industry that has suffered three brutal years of declining sales.

An interesting rumor that originated from tech blogger Paul Thurrott is that Microsoft will price the "Xbox 720" at $499 but also offer a $299 subsidized price point for those committing to a $10-a-month subscription plan.

In this video, longtime Fool contributor Rick Munarriz explores the importance of this potential strategy and why it may make a big difference this holiday shopping season.

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In this brand-new premium report on Microsoft, our analyst explains that while the opportunity is huge, the challenges are many. He's also providing regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

 


Read/Post Comments (7) | Recommend This Article (2)

Comments from our Foolish Readers

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  • Report this Comment On May 01, 2013, at 7:46 PM, NoWindows8LockIn wrote:

    This is disgusting. Microsoft is trying to do the subscription plan so that they can have you, the owner of the XBOX, in their billing system. Once they have you in their billing system, they are going to start hitting you up on all the different devices, including your PC, for payments. If you say, "No Thanks", they have a plan for that: Slowly do things to Windows, SkyDrive, etc. little by little until it is so painful for you to say "No Thanks" that you eventually start saying, "Yes, Master."

    And that always-on B.S.?

    Guys, this is an easy call: tell Microsoft where they can shove it.

  • Report this Comment On May 01, 2013, at 8:03 PM, AttfayElleybay wrote:

    If it has to be online all the time and won't play used games, I don't want it.

  • Report this Comment On May 01, 2013, at 8:22 PM, f23ghost wrote:

    yet another brainless article saying the pc is dying... hello dude us GAMERS will never let the pc die..

  • Report this Comment On May 01, 2013, at 8:40 PM, vikingkeith wrote:

    No sale!

  • Report this Comment On May 01, 2013, at 9:15 PM, jefferzbooboo wrote:

    How is this disgusting NoWindows8LockIn? There is absolutely nothing that's making you join there service, you have 2 option available, subscription or non subscription. They're already doing this with the 360. Your other scenario you mentioned is hog wash.

    If anything you're a Microsoft hater.

    I don't understand the Microsoft, Android, Apple, etc hater campaigners. It's a piece of hardware ffs. Take your enthusiasm and campaigning to something that's actual useful.

  • Report this Comment On May 01, 2013, at 9:47 PM, fenrir72 wrote:

    I wish people would be more objective. I do own both PS3 and the 1st gen RROD Xbox360 release. Aside from the latter's "R" issues, both are great consoles that entertained me to no end

    But the statement that the upcoming PS4 generated no buzz is simply inaccurate.

    P.S. Planning on getting the latest versions of both (and maybe the WiU) once all the bugs and kinks are ironed out.

  • Report this Comment On May 02, 2013, at 5:17 AM, Nox111 wrote:

    seriously, this is going to come off as trolling but i'm going to try to be constructively critical. but i'll be straight up right now, it'll be hard to not just dig in when there're honestly such glaring issues.

    to the point = whoever is doing the games industry research for Motley Fool needs to be replaced or needs to work harder at his/her/their research, because there's so much to this article and its expert opinion that's just plain wrong.

    1) who is it on your staff that's pushing the "PS4 has gotten no buzz" storyline so hard?

    this is probably the second or third article on MF that has pushed that story. and it IS a story. as in complete fiction.

    did you guys not actually read any dedicated gaming sites, or read pretty much any gaming or even general tech sites and publications for the last couple months since its announcement?

    the PS4 has been splashed EVERYWHERE.

    now, the reception wasn't always GOOD.

    but to sit there and act like its announcement generated "little buzz" is just plain uninformed on Motley Fool's part.

    2) this is going to pretty much kill the whole plot of this article, but a subscription subsidized XBox is no game-changer.

    it's not even a new strategy.

    Microsoft has already been doing it with the 360 and has been for a while already.

    this "rumor" is likely true, but its also nothing more than a continuation of a pricing policy that's already been in place.

    this article acts as if this is some sudden new stroke of genius on MS's part, which once again makes Motley Fool come off as pretty uninformed about the industry.

    3) the "all the developers will flock to the top dog" argument by your expert runs pretty much contrary to the zeitgeist of the entire industry at the moment, which has been promoting open platforms and multi-platform availability.

    in other words, not only will developers not flock to a single console because of this pricing policy, the general mood of developers is to not flock to any one console PERIOD.

    which once again leaving Motley Fool's expert opinion rather uninformed about, and out of touch with, industry opinion.

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