Microsoft Shares Decline as Xbox Console Sales Drop 30% Compared to Last Year
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 30 2025
0mins
Should l Buy MSFT?
Source: TipRanks
Xbox Division Performance: Microsoft’s Xbox division reported a 30% year-over-year drop in hardware sales, indicating a decline in demand for its consoles and positioning it as a laggard in the current console generation compared to competitors Sony and Nintendo.
Concerns Over Future: The poor performance of Xbox has led to price increases for the Xbox Series X|S and Xbox Game Pass, raising concerns that Microsoft may follow in Sega's footsteps by exiting the console market.
Stock Performance: Despite a 3.28% drop in stock price on Thursday, Microsoft shares are up 24.95% year-to-date and 33.27% over the past year, largely driven by the AI boom.
Analyst Ratings: Wall Street analysts maintain a consensus rating of Strong Buy for Microsoft, with an average stock price target of $633.05, suggesting a potential upside of 21.09%.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 421.920
Low
500.00
Averages
631.36
High
678.00
Current: 421.920
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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