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Microsoft (MSFT) Stock Gains After Xbox Game Pass Ultimate Sees Major Price Reduction

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MSFT Stock Card

Key Takeaways

  • Xbox Game Pass Ultimate pricing reduced by 23%, now $22.99/month from $29.99
  • PC Game Pass sees a 15% decrease to $13.99/month from $16.49
  • Day-one access to new Call of Duty releases eliminated from Game Pass subscriptions
  • Xbox gaming revenue declined approximately 10% year-over-year with hardware plummeting 32%
  • Recent Xbox leadership change under Asha Sharma drives pricing restructure

The Xbox division at Microsoft has faced mounting challenges. Gaming accounted for a mere 7% of overall company revenue in the most recent quarter, marking it as the sole major business segment experiencing decline.


MSFT Stock Card
Microsoft Corporation, MSFT

The financial picture painted a stark reality: console hardware sales plunged 32% following Microsoft’s decision to shelve two game projects, “Everwild” and “Perfect Dark.” CFO Amy Hood acknowledged during an analyst briefing that Xbox content and services revenue fell short of internal projections.

Game Pass Ultimate’s $29.99 monthly subscription had been in place since October, when Microsoft implemented a $10 increase. That pricing decision, as it happens, proved unpopular with consumers.

According to reports, Asha Sharma—Xbox’s newly appointed leader—communicated to staff via internal memo that the subscription had grown prohibitively expensive. Sharma, who joined from Meta, assumed control of Xbox in February following a leadership restructuring that saw Phil Spencer transition out and Sarah Bond depart.

Her solution: reduce pricing while maintaining the game catalog. Game Pass Ultimate falls to $22.99 monthly—representing a 23% discount. PC Game Pass decreases 15% to $13.99. Both adjustments took effect immediately.

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The Call of Duty Compromise

There’s a significant caveat. Newly released Call of Duty titles will no longer debut on Game Pass at launch. Microsoft had leveraged the blockbuster franchise as a primary incentive for subscription growth, particularly following its massive $75.4 billion Activision Blizzard purchase in 2023.

Moving ahead, subscribers wanting immediate access to fresh Call of Duty releases must purchase them separately at $69.99. These games will join Game Pass approximately twelve months post-launch.

This represents a meaningful compromise—reduced subscription fees, but diminished launch-day content availability.

Microsoft indicated the adjustments stem from subscriber feedback. “Our players cover a wide breadth of geographies, preferences, and tastes,” the company stated in an official blog post.

Game Pass subscriber count stood at 34 million throughout 2024. Microsoft has not released updated membership figures.

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Competitive Landscape Pressures

Xbox remains behind Sony and Nintendo in both hardware sales and subscription service adoption. This competitive disadvantage has forced Microsoft to reconsider Game Pass’s value proposition and pricing strategy.

The termination of hardware initiatives and two game development projects signals a wider strategic reevaluation of the gaming division’s direction. Some industry observers have speculated about potential divestiture or scaling back of the Xbox business, though Microsoft has issued no official statements regarding such possibilities.

Amy Hood referenced an undisclosed impairment charge within the gaming segment during the recent earnings presentation. No specific amount was disclosed.

MSFT stock advanced approximately 0.79% in after-hours trading following the pricing announcement.

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Analyst sentiment toward Microsoft remains predominantly bullish, with 34 Buy recommendations and 3 Hold ratings issued over the past three months. The consensus price target stands at $581.61.

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Crypto World

PEPE surges 4% as market sentiment improves, eyes Key resistance breakout

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A bullish PEPE chart
A bullish PEPE chart

Key takeaways

  • Pepe extends gains on Wednesday, stretching its rally from the 50-day EMA.
  • Derivatives data show heightened retail activity as risk-on sentiment returns to the market.

Pepe (PEPE) is experiencing a steady rally on Wednesday, trading in the green for the third consecutive day. The frog-themed meme coin is gaining traction as broader market sentiment improves, lifting retail demand for meme coins.

Market sentiment boosts meme coin demand

The broader market’s upside, despite ongoing geopolitical tensions surrounding the US-Iran blockade of the Strait of Hormuz and faltering peace talks, is boosting retail interest in meme coins. 

According to CoinMarketCap, the Fear and Greed Index is at 62 on Wednesday, showing a consistent rise in risk appetite since the US-Iran ceasefire announcement.

On the derivatives side, the PEPE futures Open Interest (OI) stands at $213.25 million, with a 7% increase in the last 24 hours. 

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This surge in futures positions indicates growing participation from traders, aligning with the recovery in the spot price—further supporting a bullish outlook for PEPE.

Pepe tests breakout of key resistance level

The PEPE/USD 4-hour chart is bullish and efficient as Pepe’s short-term recovery remains intact, with a three-day rebound from the 50-day Exponential Moving Average (EMA) at $0.00000368.

However, PEPE is still trading below the 100-day and 200-day EMAs, which could cap the ongoing rally.

The Relative Strength Index (RSI) at 60 is edging higher from the midline, indicating mild positive momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) remains above its signal line, keeping the histogram bars positive.

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At press time, PEPE is trading at $0.00000393. If the rally should continue, PEPE must break above its descending trendline near $0.00000400, close to the 100-day EMA at $0.00000404. 

PEPE/USD 4H Chart

A breakout above this level could pave the way for a rally toward the 200-day EMA around the $0.00000500 psychological resistance. 

On the downside, the 50-day EMA at $0.00000368 provides immediate dynamic support, with further downside protection at the February 6 low of $0.00000311.

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Crypto World

Bitcoin Bollinger Bands Setting Up BTC Price for ‘Powerful Move’

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Bitcoin Bollinger Bands Setting Up BTC Price for ‘Powerful Move’

Bitcoin (BTC) could see further upside volatility as several technical indicators suggested the BTC price was due for a “powerful“ upward move.

Key takeaways:

  • Bitcoin’s Bollinger Bands indicator now sees the potential for a massive price breakout.

  • BTC price needs to overcome resistance at $80,000 for more upside. 

Bollinger Bands suggest Bitcoin’s “bull run is next”

Bitcoin’s Bollinger Bands have reached their tightest point ever on the monthly time frame, signaling that volatility should be expected soon.

Related: Bitcoin ‘Bull Score’ hits six-month high as 2022 bear-market fears linger

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Bollinger Bands (BB) is a technical indicator used by traders to assess momentum and volatility within a certain range.

The “tightest Bitcoin monthly Bollinger band squeeze, ever,” said analyst Cantonese Cat in an X post on Wednesday.

“​​This will lead to a very powerful move when it expands,” the analyst added.

The BTC/USD pair gained about 230% between December 2023 and August 2025 to its current all-time high of $126,000, after breaking above the upper boundary of the Bollinger Bands.

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Similar occurrences in 2020 and 2016 triggered the previous bull runs that saw BTC price rally more than 520% and 4,400%, respectively.

BTC/USD monthly chart. Source: Cointelegraph/TradingView

Meanwhile, Coinvo Trading shared a chart showing that Bitcoin’s monthly RSI has dropped to its lowest level since late 2022.

This coincided with the BTC/USD drop to a multi-year support trend line, an occurrence that has previously marked Bitcoin’s macro bottoms.

The last time this happened was at the bottom of the 2022 bear market, preceding a 350% BTC price rally to its previous all-time high of $73,800, reached in March 2024.

“The same exact trendline, the same oversold RSI, the same outcome,” Coinvo Trading said, adding:

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“Bull run is next in line.”

BTC/USD monthly chart. Source: Coinvo Trading

As Cointelegraph reported, several Bitcoin metrics, including a bullish MACD crossover on the weekly chart, suggest that a BTC price breakout is about to begin. 

Bitcoin must reclaim $80,000 next

Bitcoin’s 6% rally over the last three days saw the BTC/USD pair fill the $74,000-$77,000 CME gap created over the weekend.

Traders are now looking at the next CME gap above $80,000, formed in early February.

BTC/USD four-hour chart. Source: X/Nic

MC Capital founder Michael van de Poppe said resistance at $79,000 could temporarily “stall” Bitcoin’s upward momentum

“Likely we’ll test it first, come back down for a little, find extra stamina, and then we’ll push through to $86K.”

BTC/USD daily chart. Source: X/Michael van de Poppe

Meanwhile, Bitcoin’s whale order book showed “heavy sell pressure” between $78,000-$80,000, reinforcing the significance of this resistance level.

Bitcoin whale order book. Source: CoinGlass

As Cointelegraph reported, a close above the $76,000-$78,000 resistance zone would confirm that the buyers are in control, clearing the path for a potential rally to $84,000.