The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
Xbox 360 was the highest selling gaming console in 2011.
Microsoft has sold more than 66 million Xbox 360 consoles and around 18 million Kinect units since launch. Microsoft generates a significant amount of revenue from Xbox Live, its online gaming network. Xbox Live games are currently compatible only with one platform -- Windows Phone.
However, Microsoft is planning to bring Xbox Live games to other platforms like
Check out our complete analysis of Microsoft
According to a Microsoft spokesman, "While the Xbox Live experiences and games always work best on the Windows platform, we understand that some Xbox fans may be using other types of devices. To satisfy that need, we are working to extend a few of our Xbox experiences and titles to other platforms."
Since iOS and Android are the two largest mobile platforms, it's only logical that Microsoft will target them first. Microsoft recently launched Xbox Live and a game called Kinectimals on iOS, both of which have attracted a significant number of users.
This move should significantly boost Microsoft's presence in mobile gaming, and generate increasing amounts of revenue from Xbox games going forward.The Entertainment and Devices division, comprised of Xbox, Kinect and Windows Phone, has been
Microsoft's fastest growing division in terms of revenue in the past quarters.
Coupled with the expected boost in revenues from sales of Kinect for Windows, Microsoft's push into mobile gaming should keep Xbox revenue growth going in 2012. It accounts for nearly 6% of
Microsoft's $32 Trefis price estimate , which stands around 10% above its market price.
to find out how a company's products impact its stock price at Trefis.
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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.