After last Friday's PS3 launch, the world (Sony's idea of the world that is) finally got a taste of what the PS3 is ultimately about. With the ho-hum reception the system has been getting over the weekend, analysts around the world can finally get an idea of how the next gen battle will shape up. Credit Suisse, an ultimate non-fanboy (if they chose wrong, they can stand to lose a lot of money), has decided to upgrade Microsoft's (MSFT) stock.
Credit Suisse cited Microsoft's improving position in digital entertainment as a key reason why they chose to upgrade the stock to "outperform" from neutral; Credit Suisse expects Microsoft stocks to improve by 20%. Digital entertainment -- officially known in Microsoft as the Entertainment and Devices Division -- includes the Xbox 360.
While we can only postulate what part of digital entertainment is responsible for the upgrade, the Xbox 360 leads the pack; it is singled out in Microsoft's annual report as the key reason why the division posted more than $1 billion in revenue growth fiscal year 2005 to fiscal year 2006. Could the lack of post-launch PS3 love be the reason Microsoft is getting the thumbs up from a major financial institution?