Competition is about to heat up a notch in the gaming world. Tech giant Microsoft (NASDAQ:MSFT, which seems to have its fingers in more pies than one can count these days, is getting ready to introduce its own mobile game store in July.
MSFT’s Game Store
The plans look set to open another front in Microsoft’s competition with Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG) (NASDAQ:GOOGL). According to Bloomberg, the store will be browser-based. Initially, it will offer Microsoft’s own games, and subsequently, will be opened to other publishers.
Notably, being “browser-based” means that the game store will operate through a web browser interface, rather than being a standalone application that needs to be downloaded and installed on a device. Consequently, its browser-based nature will make the game store accessible across devices and countries.
Major Opportunity for Microsoft
This move could provide the company an opportunity in a world of closed gaming ecosystems and regulatory actions. Apple and Epic Games have been in a years-long legal tussle over the former’s app store rules. Earlier this year, Epic accused Apple of failing to comply with a court ruling mandating Apple to open its app store to third-party payment options.
For Microsoft, the jump to a game store also comes after its mega $69 billion acquisition of Activision Blizzard. The latter is known for hit titles such as Candy Crush and Call of Duty.
Amidst an Industry in Turmoil
Concurrently, the gaming industry seems to be in the midst of challenging times. Multiple names have resorted to layoffs and shuttered studios in recent times. Grand Theft Auto developer Take-Two Interactive (NASDAQ:TTWO) has dropped multiple projects and lowered its headcount under a cost reduction program. Unity Software (NYSE:U) and Tencent’s (OTC:TCEHY) (HK:0700) Riot Games have also trimmed their headcounts in recent times. Microsoft is also closing multiple studios and trimming headcount in its gaming division.
What Is the Price Target for Microsoft?
Microsoft’s share price, though, is riding a wave of optimism with a 71% gain over the past three years. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average MSFT price target of $489.56.
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