Next-generation Xbox 720 Preview And The Companies To Watch

Much of the upside in shares of Microsoft (MSFT) in the second half of 2012 was supported by the anticipation that Windows 8 would reignite demand for desktop and laptop computers. As this thesis continues to be played out over several quarters, investors may renew their interest in the company when the successor to the Xbox is released. [Related Lists: Sony PlayStation 4 Preview: 5 Tech Stocks to Watch]

The next Xbox will have these specifications, if the leak from VGleaks is accurate:

- 8-core x64 processor at 1.6Ghz from AMD (AMD) or IBM (IBM) 
- Blu-ray player·       
- AMD 800Mhz graphics processor

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Analysis

It is commonly thought that next-generation consoles could revive the gaming industry, but this is a misnomer. Games made for current-generation consoles do not rely on advanced technologies to be top-sellers. Game-makers are making fewer titles which cost more to produce and have a greater-level of game-complexity and entertainment.

Still, Microsoft’s implementation of Kinect for games added another dimension of entertainment for the industry. The refreshed Xbox, if it implements IllumiRoom, could improve game sales for the industry.