Microsoft Confirms New Xbox Release Date, Price

The console wars heated up Tuesday as Microsoft Corporation (NASDAQ: MSFT) officially unveiled its new Xbox console.

What Happened: The company’s Xbox Twitter account unveiled the Xbox Series S with a “Let’s make it official” tweet. The new console, which will be the smallest Xbox ever, comes with an estimated retail price of $299. The console will be released on Nov. 10, 2020.

The new console has features like faster load times, higher frame rates, richer and more dynamic worlds, and all-digital.

Xbox Series S
🎮 All-digital next-gen console
🏃 Faster load times
📈 Higher frame rates
🌎 Richer, more dynamic worlds
🔥 Next generation gaming performance
🔎 In our smallest Xbox ever#PowerYourDreams pic.twitter.com/5GxCBiSVtO

— Xbox (@Xbox) September 8, 2020

Why It’s Important: The announcement by Microsoft puts the company out first in a cat and mouse battle with rival Sony Corporation (NYSE: SNE), who has yet to unveil a release date or pricing details for its upcoming Playstation 5.

The wording of all-digital could put pressure on physical retailer GameStop Corporation (NYSE: GME), which gets a large portion of revenue from selling used and new release games. The focus on digital will mean more downloads directly from consumers.

Microsoft saw Xbox hardware revenue up 49% in the fourth quarter. Xbox content and services revenue was up 68% in the fourth quarter.

Price Action: Microsoft shares were down 3% to $207.15. Sony shares were down 1% to $76.53.