Microsoft Corporation (MSFT) Pulls a Dramatic 180

Some of the damage to the Xbox One’s reputation can’t be undone, and the device still has a few issues that consumers don’t like, such as its requirement to have Microsoft Corporation (NASDAQ:MSFT)’s Kinect motion-capture device connected. Still, Microsoft’s admission that its previous policies had upset consumers may have averted disastrous sales for the console. Sony Corporation (ADR) (NYSE:SNE)’s still riding its wave of optimism after E3, but Microsoft’s top gaming competitor won’t be able to rely on its consumer-friendly policies alone now to cement the PS4’s future market leadership. The race for next-generation console leadership just got a lot closer.

The real winner from this revelation isn’t Microsoft Corporation (NASDAQ:MSFT) or Sony Corporation (ADR) (NYSE:SNE), however. GameStop Corp. (NYSE:GME)’s future is twice as bright after Microsoft’s about-face. While GameStop Corp. (NYSE:GME)’s tried to diversify its sales away from used games, this market still makes up a significant portion of the retailer’s revenue, with pre-owned video game products contributing more than 21% of the company’s total sales last year. A future without the Xbox One’s original heavy-handed used games restrictions is one where GameStop Corp. (NYSE:GME) investors can breathe a whole lot easier. The relief was plain late Wednesday, as GameStop Corp. (NYSE:GME)’s stock shot up by 6% in after-hours trading.

Microsoft does the right thing
Microsoft Corporation (NASDAQ:MSFT)’s battle with Sony Corporation (ADR) (NYSE:SNE) for next-gen sales is only just beginning, but yesterday’s announcement is a major step in the right direction for the Xbox’s future. Microsoft may have admitted defeat over its planned policies for the console, but the company and investors have avoided a potentially far more devastating defeat in what really matters: sales.

The article Microsoft Pulls a Dramatic 180 originally appeared on Fool.com.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool owns shares of GameStop Corp. (NYSE:GME) and Microsoft Corporation (NASDAQ:MSFT).

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