If You Invested $1,000 In Microsoft Stock When Xbox Was Released, Here's How Much You'd Have Now

In 2001, Microsoft Corporation (NASDAQ: MSFT) released the Xbox gaming console to take on rivals like Sony Corp (NYSE: SONY) and Nintendo Co (Pink: NTDOY).

What Happened: On Nov. 15, 2001, the Xbox console was released and became an immediate favorite for gamers and the introduction of the Xbox led to a huge battle between Sony and Microsoft for gamers’ wallets.

Microsoft has invested in acquisitions in the gaming space and its Xbox Live service gets monthly revenue from subscribers.

The original Xbox sold over 24 million copies and was considered a modest hit for the company. The Xbox 360 released in 2005 fared much better with over 80 million units sold. Microsoft has trailed Sony in terms of units sold for many of the console cycle releases.

Microsoft reported a 4% year-over-year decline for its Xbox segment in the fourth quarter. The company faced tough comps from the pandemic, which saw a surge in gamer engagement.

Related Link: If You Invested $1,000 In Sony Stock When Playstation 2 Was Released, Here’s How Much You’d Have Now

Investing $1,000 In Microsoft: Investors who thought the Xbox was going to be a hit for Microsoft could have purchased shares of the technology giant in 2001.

An investment of $1,000 in Microsoft shares on Nov. 15, 2001, could have bought 15.12 shares of MSFT. A 2:1 split occurring in 2003 would have made the hypothetical purchase 30.24 shares.

Based on a share price of $288.84 at the time of writing, the $1,000 investment in Microsoft would be worth $8,734.52 today.

That represents a return of 773% in less than 10 years and around 77% annually. Not a bad return for having conviction in a video game console becoming a hit.