Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Microsoft Corporation (MSFT) Isn’t Done With the Xbox 360 Yet

Source: Microsoft Corporation (NASDAQ:MSFT).

The Xbox 360 is about to be old news, but Microsoft Corporation (NASDAQ:MSFT) has big plans for the system. Mr. Softy told analysts at the Citi Global Technology conference this week that it will keep supporting the console until 2016, including with more than 100 new games over the next few years. It seems that there’s a lot of business still tied to that aging piece of hardware.

For example, among the new titles set for release is Take-Two Interactive Software, Inc. (NASDAQ:TTWO)‘s  Grand Theft Auto V, coming to the Xbox 360 and Sony‘s PS3 starting Sept. 17. The GTA franchise has been a big winner for Take-Two Interactive Software, Inc. (NASDAQ:TTWO), selling 127 million units over its life to date. And even though there hasn’t been a major new chapter released since 2008, the brand was still responsible for 20% of the company’s revenue last quarter. A big hit in GTA V will boost Take-Two’s profits, but it will also help this generation of consoles go out with a bang, not a whimper.

GameStop Corp. (NYSE:GME) has to be happy about the longer life cycle too, since it will take some time for a vibrant used-game market to develop for next-gen systems. The retailer will need Xbox 360 and PS3 trade-ins to prop up its stellar margins on used software and hardware. And with both Microsoft Corporation (NASDAQ:MSFT) and Sony planning to support their prior systems for years, GameStop Corp. (NYSE:GME) is in the right place at the right time. It can benefit from selling activity around both generations of consoles. That prime positioning is one reason the stock’s epic run higher over the last year makes some sense.

For its part, Microsoft Corporation (NASDAQ:MSFT) would be crazy not to keep throwing resources into the Xbox 360. It has a huge installed base and is comfortably ahead of rivals in this last lap of the race between it, Sony, and Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY). Mr. Softy’s console sold 140,000 units just in June, better than any other system — and better than Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) could manage with its Wii U for the entire second quarter. Overall, Microsoft Corporation (NASDAQ:MSFT) has sold a total of 23 million units of the console just over the last two years.

Plenty of attention this fall will be focused on the next-gen battle between the Xbox One and the PS4. Microsoft Corporation (NASDAQ:MSFT)’s $500 price point and PR missteps have some investors worried that it might stumble out of the gate. However, continued brisk sales of the Xbox 360 could take some of the sting off a weak Xbox One launch.

The article Microsoft Isn’t Done With the Xbox 360 Yet originally appeared on is written by Demitrios Kalogeropoulos.

Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Take-Two Interactive. The Motley Fool owns shares of GameStop and Microsoft. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.