Netflix Doesn't Have to Worry About Microsoft's Xbox One

Microsoft (NASDAQ: MSFT  ) may have introduced its new video game console on Tuesday as the ultimate entertainment hub, but Netflix (NASDAQ: NFLX  ) doesn't have anything to be worried about. 

Speculation picked up last year when Netflix CEO Reed Hastings announced that he was leaving Microsoft's board of directors. Was Microsoft buying Netflix? Was the new Xbox going to take on Netflix as a streaming video platform?

Well, Mr. Softy never warmed up to the leading video service -- and now the new Xbox One console doesn't seem to pose much of a threat. A Netflix icon was even featured on the home page of the initial presentation! 

In this video, longtime Fool contributor Rick Munarriz explores why Netflix may have more to gain than lose here.

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 our premium report on Microsoft, a Motley Fool analyst explains that while the opportunity is huge, so are the challenges. The report includes regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.


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  • Report this Comment On May 23, 2013, at 2:06 AM, Seesaw21 wrote:

    I posted a comment a couple of days back regarding the same.

    Microsoft is coming up with live programming and interactive programming

    check the below link

    http://mashable.com/2013/02/11/microsoft-la-studios-xobox/

    What if it comes with a la carte programming with different cable networks instead of bulk programming and has its own streaming shows developed to be shown in streaming.

    Youtube has come up with livestream whereas channels can live stream content and as its own subscription channels.

    Apple is supposed to come up its own apple tv.

    The next wars in technology are going to be living room wars

    Today Netflix lost the Viacom deal and lost Dora the explorer, Spongebob squarepants, Comedy central shows etc. The same shows are available on Amazon prime video.

    I did not even mention Hulu right now as it is bound to be taken over by yahoo or amazon or any other of the big player

    Netflix being taken over by anyone does not sound to be a possibility at the current valuation. Also why buy someone who has content mostly sourced from other players. Netflix producing own sshows does not mean it owns the content it just has the rights to air it or stream it first.

    Amazon seems to be the nearest rival which might eclipse netflix very soon and I believe would eclipse netflix in next 6 months or so in terms of number of titles available

    Amazon prime offers a better value overall $39/year (approx $3.25/month) for students $79/year ($6.59/month) for noraml consumers with free streaming and free 2 day shipping what else can anybody ask for. Prime has Viacom ,epix etc just lacking maybe AMC shows etc but has suits etc to counter

    Amazon CEO Jeff Bezos is said to be the smartest CEO nowdays whereas Netflix CEO Reed hastings being in technology domain makes comments like "I did not get to see or look or feel a Blackberry Z10 till now" or anybody remembers the Qwikster fiasco

    Amazon, Youtube(Googe), Microsoft, Yahoo and Hulu are Netflix competitors with deep pockets.

    I personally feel the 2nd quarter for netflix would be a tough one and it would gradually deteriorate.International expansion expenses are way too much, content costs are escalating lets see how it all pans out

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