Even though Microsoft's
One of its biggest bets, however, now involves the world's love of video games. Microsoft issued a press release last week promoting its latest acquisition -- this time, a human. Hironobu Sakaguchi, creator of the famous Final Fantasy series of role-playing titles, will now be a team player for Microsoft Game Studios.
Things once looked grim in this sector, but then Nintendo came to be, and the electronic pastime has had a rigid staying power ever since. Nowadays, when Xbox has proved to be a worthy competitor to Sony's
Although no financial terms of the deal were disclosed, it's safe to say Microsoft is paying Sakaguchi a pretty penny. All video game companies, Electronic Arts
Of course, developing a game is sometimes only half the picture, in terms of expenditures. Consider all the license deals that companies need so they can differentiate their portfolios. (Here's a recent example.) This isn't to say that investors should be scared away from the stocks in this sector, since Electronic Arts and Activision are clear winners. But potential buyers should carefully study this part of the sector. Even with all the costs, the profits are still out there in the economic ether, waiting to be claimed.
Don't worry, though. In this case, Microsoft has the cash -- even after that special dividend. And the promise of bigger dividend payments over time is the biggest reason to buy the stock right now. It might not be the growth vehicle it once was, but it does have great income potential down the road. Put this Dow blue chip in a Roth IRA and just sit back and reinvest the payouts. Your retirement will thank you.
More articles on Microsoft:
- Microsoft's Search and Destroy
- Is Microsoft Infected?
- Microsoft Consumes Little Giant
- Microsoft's New Suit
Electronic Arts and Activision have both been highlighted as Motley Fool Stock Advisor recommendations. Subscribe today with a six-month money-back guarantee to learn more. In the meantime, don't forget to check out the Microsoft discussion board.
Fool contributor Steven Mallas owns none of the companies mentioned.