The console wars heated up Tuesday as Microsoft Corporation MSFT officially unveiled its new Xbox console.
What Happened: The company’s Xbox Twitter account unveiled the Xbox Series S with a “Let’s make it official” tweet. The new console, which will be the smallest Xbox ever, comes with an estimated retail price of $299. The console will be released on Nov. 10, 2020.
The new console has features like faster load times, higher frame rates, richer and more dynamic worlds, and all-digital.
Why It’s Important: The announcement by Microsoft puts the company out first in a cat and mouse battle with rival Sony Corporation SNE, who has yet to unveil a release date or pricing details for its upcoming Playstation 5.
The wording of all-digital could put pressure on physical retailer GameStop Corporation GME, which gets a large portion of revenue from selling used and new release games. The focus on digital will mean more downloads directly from consumers.
Microsoft saw Xbox hardware revenue up 49% in the fourth quarter. Xbox content and services revenue was up 68% in the fourth quarter.
Price Action: Microsoft shares were down 3% to $207.15. Sony shares were down 1% to $76.53.
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