Microsoft gets a stock boost from 360
Competitors be damned! With the launch of both the Wii and PS3 come and gone, things are still looking rosy for Microsoft. On the basis of Microsoft's strengthening position in the digital entertainment arena (read: 360 and Zune) Credit Suisse has decided to raise Microsoft's stock rating from "neutral" to "outperform." Credit Suisse believes that Microsoft stock could appreciate as much as 20%, all thanks to the Entertainment and Devices division, the group responsible for both the 360 and Zune.
Sure, this is good news for Microsoft, but it has deeper implications as well. Credit Suisse's decision reflects an implicit belief that Microsoft's performance will increase despite the competition from PS3 and Wii. This doesn't necessarily mean that Credit Suisse believes Microsoft will dominate this generation of gaming, just that MS will be making money. Perhaps more to the point, it means that MS will be making more money than before. This holiday, it's a safe bet that plenty of 360s will be bought when shoppers can't get their hands on a PS3 or Wii, so the stock upgrade makes sense. The question is: how long will Microsoft's success last?
[Via Joystiq]
