Microsoft (MSFT) - Get Report was up 2.6% in midafternoon after Merrill Lynch analyst Henry Blodget said, in a research note, that shares could benefit from a "slight upside" potential to the company's June quarter revenue estimates.

Blodget raised his revenue estimate to $6.5 billion from $6.4 billion and bumped his earnings projection up to 43 cents a share from 41 cents. Looking ahead, Blodget indicated a lot depends on timely release of the Xbox game console and new software products, Office XP and Windows XP.