NEW YORK (TheStreet) -- Shares of Microsoft (MSFT) are rising 1.56% to $46.19 as the company said that gamers would now be able to use its newest consoles to play older games, and on Xbox's One's lower prices, according to Bloomberg.
Gamers have been asking for the backward compatibility since before Microsoft and Sony (SNE) released new versions of their consoles in 2013, Bloomberg noted.
The first batch of consoles, which will include 100 games, will be available by the end of 2015, and more will be coming next year, according to the company.
"Unlike Sony's streaming service, Microsoft's will allow people to play games they'd purchased for their old consoles without having to pay a second time," Bloomberg reported.
Additionally, Microsoft has decreased Xbox One's price since the product first came out, to $349 from $500, while the Sony's Playstation 4 (PS4), which Microsoft has been competing with, has stayed at its launch price--$399.
Lower prices will give the company an advantage to attract gamers, as "Microsoft is in a stronger position to play the pricing game than Sony is because of their balance sheet and whole business model," said managing director of Arcadia Investment John Taylor, according to CNBC.com.
Separately, TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow."