By Sam Boughedda
Morgan Stanley analyst Keith Weiss said in a note to investors Friday that Microsoft (NASDAQ:MSFT) is building out its gaming platform, and they expect 'robust growth.'
In a research note, Weiss said a discussion with Xbox CFO Tim Stuart demonstrated the company's ability to leverage its entire platform to compete in today's video game industry.
Weiss believes that by focusing on and evolving the 3 C's of gaming, content, community, and cloud, Microsoft aims to expand its user base, which should, in turn, grow its revenue opportunities long term.
"As gaming grows more complex, the traditional single content releases are no longer sufficient to support the overall growth in the video game industry. Microsoft's Xbox CFO Tim Stuart outlined Microsoft's vision to evolve its gaming business by leveraging the 3 Cs of gaming and use Microsoft's entire platform to compete in today's gaming industry," wrote Weiss.
"Utilizing the company's breadth in content, expanding community and industry leading cloud offerings, Microsoft is further building out its holistic gaming platform that is expected to see robust growth over the next 12 months."
Morgan Stanley currently has an Overweight rating and a $372 per share price target on Microsoft.