From Nasdaq: 2025-06-11 10:58:00

Microsoft’s gaming business is thriving, with gaming revenues up 5% and Xbox content and services revenues rising 8% in Q3 of fiscal 2025. PC Game Pass revenues surged over 45%, and cloud gaming set a new record with over 150 million hours played. Microsoft also announced two new Xbox handheld devices in partnership with Asus for the 2025 holiday season.

Facing tough competition from Sony and Nintendo, Microsoft must innovate across cloud gaming, Game Pass, and new hardware to stay competitive. Sony’s PlayStation platform leads in exclusive titles and console sales, while Nintendo dominates family-friendly and portable gaming through the Nintendo Switch.

Microsoft’s share price has gained 11.7% YTD, outperforming the industry and sector. With a forward P/S ratio of 11.24X, MSFT stock is trading higher than the industry average. Analysts estimate Q4 fiscal 2025 earnings at $3.35 per share, showing 13.56% growth year over year.

The consensus estimate for Microsoft’s fiscal 2025 earnings is $13.33 per share, revised upward by 3 cents. With a Zacks Rank #3 (Buy), Microsoft is expected to see 12.97% year-over-year growth. Zacks experts highlight a satellite-based communications firm as a top stock pick with potential for +100% gains in the coming months.



Read more at Nasdaq: Can Microsoft Sustain Gaming Momentum With AI and New Devices?