Microsoft Corp. (NASDAQ: MSFT) has confirmed that a new Xbox Series S game controller is coming soon for a retail price of $299. The software giant confirmed last night an earlier leak that included a photo of the Series S. Microsoft promised that details are coming soon.
According to reports, the Xbox Series S does not include a disk drive and will not support 4K graphics. However, the console will play the same games as the next generation Xbox Series X.
Both new consoles are expected to be released on November 10, and Series X is said to carry a retail price tag of $499. Sources told Windows Central that the Series S will be available with Xbox All Access financing option of $25 a month. The Series X financing option will cost $35 a month.
👀 Let’s make it official!
Xbox Series S | Next-gen performance in the ˢᵐᵃˡˡᵉˢᵗ Xbox ever. $299 (ERP).
Looking forward to sharing more! Soon. Promise. pic.twitter.com/8wIEpLPVEq
— Xbox (@Xbox) September 8, 2020
Microsoft’s new Xbox consoles will be competing with a new PlayStation 5 from Sony Corp. (NYSE: SNE). No pricing for the PS5 has been announced yet, and an announcement from Sony scheduled for tomorrow will not include any release or pricing information for the new console.
Both the new Xbox and PlayStation consoles use chips from Advanced Micro Devices Corp. (NASDAQ: AMD). At the end of the last quarter, AMD forecast third-quarter revenue of $2.45 billion to $2.65 billion, up by about 32% sequentially and 42% year over year. One of the major contributors to that projection was AMD’s semi-custom division, which makes the Xbox and PlayStation controller chips.
Xbox Series S is expected to support 1080p graphics, a significant step down from the 4K capabilities in the Series X. There’s no internal disk drive and a rumored 512GB of flash memory is somewhat limited in the gaming world. But at a price of $299, the Series S is still a solid buy, according to Jeff Grubb at VentureBeat.
Even an announcement like this can’t break the pall on tech stocks that began last week. Microsoft stock traded down fractionally at noon Tuesday, at $206.35 in a 52-week range of $132.52 to $232.86. The stock’s 12-month consensus price target is $228.22. As a whole, the tech sector is down about 3% Tuesday while the Nasdaq Composite is down about 3.0%.