Microsoft Corporation (NASDAQ:MSFT) Reportedly Planning to Launch a Disc-Less Xbox One S

Microsoft Corporation (NASDAQ:MSFT) Reportedly Planning to Launch a Disc-Less Xbox One S

Microsoft Corporation (NASDAQ:MSFT) Reportedly Planning to Launch a Disc-Less Xbox One S

Here’s why the software giant might be doing so.

Over the course of the current Microsoft (NASDAQ:MSFT) Xbox One product cycle, the software giant has released multiple improvements and iterations. Following the launch of the original Xbox One, Microsoft launched the Xbox One S, which was slimmer and incorporated an updated, more efficient processor. Microsoft also released the Xbox One X, which was an even more powerful console thanks to a redesigned and much more capable processor. The Xbox One S and Xbox One X co-exist in the market. 

Now, according to Windows Central, Microsoft is planning yet another variant of the Xbox One S — this time without support for physical discs.

Here’s why Microsoft may want to give such a product a shot.

Cost-cutting and better reliability

Building in support for spinning discs in a game console does two things from the maker’s point of view. First, it adds cost because the hardware required to read a game disc doesn’t come for free. Second, it introduces another potential point of failure. 

A disc-less Xbox One S would likely be both cheaper to manufacture and less prone to failure. 

Such a product isn’t likely to be salable at the same prices that the Xbox One S commands today — nobody is going to want to pay the same for fewer features. Moreover, while Microsoft does generate revenue from console sales, the real money that Microsoft makes is from what comes after the console sale, such as revenue from game sales, service subscriptions, and so on. 

It’s in Microsoft’s best interest, then, to broaden its Xbox player installed base as much as it possibly can. 

By offering a disc-less Xbox One S — presumably in markets where broadband internet connections are ubiquitous — Microsoft should be able to offer a lower-cost console option to try to get more gamers into the ecosystem. 

The game industry has gone (mostly) digital

A key reason that such a console might be viable in the market is that the game industry has already shifted significantly toward digital content sales — and game publishers have significant incentive to do the same.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 108.01.

The projected upper bound is: 117.68.

The projected lower bound is: 106.23.

The projected closing price is: 111.95.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 45.0339. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 62.17. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 47 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 54. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 15 period(s) ago.

Rex Takasugi – TD Profile

MICROSOFT CP closed up 0.050 at 111.750. Volume was 52% below average (consolidating) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
111.870 112.660 111.430 111.750 17,686,996

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 111.68 105.64 106.29
Volatility: 15 36 32
Volume: 24,001,928 31,965,778 30,878,186

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

MICROSOFT CP is currently 5.1% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into MSFT.O (mildly bullish). Our trend forecasting oscillators are currently bullish on MSFT.O and have had this outlook for the last 33 periods.

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