Key Takeaways MSFT gaming revenues rose 5% in Q3 FY25, with Xbox content and services revenues up 8% year over year. Cloud gaming hit 150M hours played as MSFT added LG TV support and launched AI tools like Copilot and Muse. Two Xbox handhelds co-developed with Asus will launch in select markets during the 2025 holiday season.Microsoft’s (MSFT) gaming business is showing impressive growth so far, driven by strong gaming content, more AI integration and new hardware. In the third quarter of fiscal 2025, ga ...

Core Viewpoint - Microsoft is entering the handheld gaming console market with the launch of the ROG Xbox Ally and ROG Xbox Ally X, aiming to compete with Nintendo's recently released Switch 2 [1][2]. Group 1: Product Launch and Features - The ROG Xbox Ally handhelds will enable cross-device gameplay, allowing gamers to play "anytime, anywhere, on any device" [2]. - The ROG Xbox Ally X will feature the AMD Ryzen AI Z2 Extreme processor, while the standard ROG Xbox Ally will use the AMD Ryzen Z2 processor [4]. - The Nintendo Switch 2 utilizes a chip from NVIDIA, a leader in AI chips and GPUs, highlighting a key difference in hardware between the two consoles [4]. Group 2: Market Context and Competition - Nintendo has historically dominated the handheld market with successful consoles like the Game Boy, Nintendo DS, and Nintendo Switch [3]. - Microsoft aims to capture market share in both physical and handheld console segments, intensifying competition with Nintendo starting in 2025 [6]. - The new Microsoft handhelds are expected to launch in time for the holiday season in 2025, which is a peak shopping period for gaming consoles [5]. Group 3: Strategic Partnerships - Microsoft has partnered with Roblox to make its games playable natively on the new handhelds, marking a significant development for both companies [4]. Group 4: Financial Performance - Microsoft stock closed at $472.75, up 0.50%, and reached an all-time high of $473.43 during intraday trading, reflecting a 13% increase year-to-date in 2025 [6].