Xbox's Struggles and Microsoft's Stock Dip

Microsoft's stock took a hit recently, and one big reason is the Xbox division's poor sales. The latest report showed a 30% drop in Xbox console sales compared to last year. This isn't surprising, as Xbox has been struggling against its rivals, Sony and Nintendo, for a while now. The Xbox Series X|S hasn't been doing well. In fact, it's selling even worse than the original Xbox did. That's a big deal because the original Xbox had to compete with the PlayStation 2, which is the best-selling console ever. Because of these struggles, Microsoft has made some changes. They raised the price of the Xbox Series X|S and the Xbox Game Pass subscription. They also decided to make their games available on other platforms, not just Xbox. Some people are worried that Xbox might end up like Sega, which stopped making consoles in 2001. Ironically, Sega's failure helped Microsoft enter the gaming market with the original Xbox later that same year. Microsoft's stock was down 3. 28% on a recent Thursday, but it's still up 24. 95% for the year. The stock has also increased 33. 27% over the past year, partly due to the AI boom. Wall Street analysts have a "Strong Buy" rating for Microsoft, with an average price target of $633. 05. This suggests a potential 21. 09% upside for the shares.