Not Cloud, This Could Be A Big Catalyst For Microsoft Corporation (MSFT)

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The AR Move

According to Digi-Capital, the augmented reality market will account for about $90 billion in revenue by 2020. Microsoft’s AR HoloLens can be a big part of its AR strategy to avoid being left behind in this space. Microsoft has submitted HoloLens for governmental approval in China and added the manufacturer ‘3Glasses’ to its list of headset developers that already includes Acer, ASUS, Dell, HP and Lenovo. Microsoft’s HoloLens ‘mixed reality’ headset has already been launched in Europe, Australia, New Zealand. In the U.K. the HoloLens costs £2,719, while in the U.S., it’s priced at $3,000. (See Also: MSFT Stock: Should You Buy Microsoft Corporation (MSFT) Stock Going Into 2017?)

The HoloLens is not a device aimed at retail consumers as of now, but it targets enterprises. NASA, elevator maker ThyssenKrupp and Airbus, are among the customers using HoloLens in their businesses. It is the most futuristic AR headset with no real competitor at present. Nearly all tech giants like Google and Apple are bullish on AR technology. With such huge revenue potential from its HoloLens, Microsoft is ahead of the pack now in the AR space. However, it remains to be seen whether Microsoft can eventually bring augmented reality products to the masses. Consumer-level AR is set to arrive soon. With HoloLens, we can expect a radical shift in how one interacts with computers in near future. This may also breathe new life into Microsoft’s declining PC segment.

Putting It All Together

The prospects of the VR gaming market and AR are robust and huge. Microsoft Corporation (NASDAQ:MSFT) is geared to make the most of the opportunities, with its AR/VR products and initiatives. Of late, Microsoft does not disclose a detailed break-up of gaming revenues. However, even if it captures a moderate share of the VR gaming market with its no 2 position in the console market, it can generate revenues in billions here alone. One shouldn’t be surprised if Microsoft opens up another big market for itself in the form of AR and mixed reality, armed with its early mover advantage (HoloLens). With already existing growth drivers like ‘cloud’, coupled with unlikely new catalysts like AR/VR, Microsoft could be a solid long-term investment.

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The article Not Cloud, This Could Be A Big Catalyst For Microsoft Corporation (MSFT) originally appeared on amigobulls.com. Watch our analysis video on MSFT (3).

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Additional Links:

(1) https://www.cnet.com/news/xbox-virtual-reality-phil-spencer-says-no-need-yet/

(2) http://amigobulls.com/stocks-to-buy/top-tech-stocks/?ref=il&ref=im

(3) http://amigobulls.com/stocks/MSFT/analysis?ref=im

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