Wednesday, May 8, 2013

Will the New Xbox Be Bigger Than You Think?

We're now just days away from Microsoft's (NASDAQ: MSFT  ) May 21 unveiling of the new Xbox, but a leaked document suggests that the new gaming console may be a category killer of an entertainment appliance.

A leaked email is making the rounds in cyberspace and tech news site Ars Technica is reporting that in it the company admits that the new Xbox won't necessarily need an online connection for single-player games, playing Blu-ray discs, or streaming live TV. A rumor earlier this year claimed that the new Xbox would have to always be tethered to the Internet to work.

That will come as a relief to folks with spotty connectivity, but the email -- if legitimate -- also points to following Sony into embracing Blu-ray as the high-def optical disc platform of choice. Then we get to the "live TV" component, which suggests that Microsoft will work with your current cable provider but possibly result in Microsoft putting out its own TV service.

Ever since Netflix CEO Reed Hastings left Microsoft's board of directors last year, it's been speculated that Mr. Softy was readying a play for a premium video service of its own.

In this video, longtime Fool contributor analyzes the nuggets in the reportedly leaked email and concludes that Microsoft may redefine the home theater experience if it aims well this time.

It's been a frustrating path for Microsoft investors, who've watched the company fail to capitalize on the incredible growth in mobile over the past decade. However, with the release of its own tablet, along with the widely anticipated Windows 8 operating system, the company is looking to make a splash in this booming market. In a new premium report on Microsoft, a Motley Fool analyst explains that while the opportunity is huge, so are the challenges. The report includes regular updates as key events occur, so make sure to claim a copy of this report now by clicking here.

 

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