Microsoft Corporation (MSFT): Can Bing Grab More Market Share?

Third, Microsoft is expanding where you use search. It should already be clear Microsoft’s Xbox One isn’t just for gaming. The company’s next generation console is set to take over your living room, capable of detecting your voice and movements. Bing is what makes all of this innovation possible.

Thanks to Bing’s ability to voice-query commands and body language, the device is able to react as if it was human. To prepare for Bing functionality, Microsoft worked with Xbox partners like Netflix, Inc. (NASDAQ:NFLX) and HBO to create index catalog for a seamless experience. Tell your Xbox to search for Mad Men, and it will find information related to your search and display it through the Xbox. Bing will be the search engine driving your living room experience.

Is Bing a threat to Google?

Let’s be clear – Bing will not overtake Google. But the Microsoft search engine does represent a big enough threat that Google is willing to pay Mozilla $1 billion per year to remain the default search engine on its Firefox browser. Google will be forced to pay higher traffic acquisition costs – money paid to third parties to direct traffic to its search engine – to put a lid on Bing’s growth.

Foolish bottom line

Investors shouldn’t dismiss Bing. These catalysts suggest Microsoft will continue to gain market share over the next few quarters. And while this will only slightly boost Microsoft’s top-line, it could help it significantly advance the company’s product ecosystem and represent a major threat to its competitors.

Robert Baillieul has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft.

The article Can Bing Grab More Market Share? originally appeared on Fool.com and is written by Robert Baillieul.

Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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