Microsoft Boosts Storage For Xbox Consoles

Microsoft Corporation (NASDAQ: MSFT) unveiled a new version of its Xbox One gaming product with increased storage.

The new product, with one terabyte of storage capacity will ship to retailers June 16, the company said.

Microsoft closed Tuesday at $45.65, down $0.08.

The new product "was sorely needed for anyone who makes daily use of their console," PCWorld columnist Ian Paul wrote Tuesday of the digital gaming product.

"Although 500GB sounds like a lot of storage, it's really a pittance when you consider that most games require a minimum of 50GB of space just to start playing," according to Paul.

The new console will be available for $399 and all 500GB Xbox One bundles will be priced at $349, the company said.

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In the nine months ended March 31, Microsoft Xbox console sales of 10.7 million units were off nearly 1 percent from a year earlier.

Xbox Platform revenue decreased by $471 million, or 8 percent, driven by lower prices of Xbox One consoles compared to the prior year, as well as a decrease in second- and third-party video games revenue.

Xbox Platform's cost of revenue declined by $138 million or 3 percent, mainly due to lower cost per console sold.

Sony is also expected to release a 1TB PlayStation 4 in the coming days, according to PCWeek.