Microsoft (MSFT) took advantage of the absence of a major competitor to dominate the news cycle ahead of the E3 2019 video game show in Los Angeles. Microsoft previewed a new Xbox console due out in late 2020, a new cloud gaming service and host of major game titles at a media event on Sunday.
XThe software giant usually battles with chief rival Sony (SNE) for headlines at E3, but Sony is not at the show this year. E3, short for Electronic Entertainment Expo, officially opens on Tuesday at the Los Angeles Convention Center.
Microsoft said its next-generation living room console, code-named Project Scarlett, will launch in holiday season 2020. The high-performance machine will feature a custom-designed processor from Advanced Micro Devices (AMD). The device will be four times more powerful than the current Xbox One X console, Microsoft said.
The new console will show up to 120 frames per second, or twice the average TV, and 8K ultra-high-resolution video. It also features a solid-state drive for faster load times. The Scarlett console will launch with the highly anticipated game Halo Infinite.
"For us, the console is vital and central to our experience," Phil Spencer, head of Microsoft's Xbox division, said at the event. He touted Scarlett as "the future of gaming."
AMD, Microsoft Shares Rise On E3 2019 News
AMD stock surged 2.5% to 33.23 on the stock market today. On Thursday, AMD stock broke out of a flat base at a buy point of 30.05, according to IBD MarketSmith chart analysis.
Microsoft stock rose 0.9% to 132.60. In intraday trading, it reached a record high of 134.08. On Friday, it broke out of a flat base to surpass a buy point of 131.47. It remains in a buy range through 138.04.
At its press event, Microsoft also discussed its plans for cloud gaming. E3 2019 attendees will get the first public hands-on demonstrations of Microsoft's Project xCloud service.
Microsoft also announced that Xbox One owners will be able to stream games from their own consoles to mobile devices. The company will preview that capability starting in October.
Gears 5 Leads Microsoft Game Previews At E3 2019
At its livestreamed media event, Microsoft showcased 60 upcoming games for console and PC, led by its shooter game Gears 5.
Other major games shown at the event included Star Wars Jedi: Fallen Order from Electronic Arts (EA), Elden Ring by a company called FromSoftware and Cyberpunk 2077, a product of CD Projekt. Actor Keanu Reeves stars in Cyberpunk 2077 and appeared on stage at the event to promote the title.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor companies.
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