Microsoft said that it was delaying Halo Infinite until 2021 because of several development challenges, including the impact of the Covid-19 pandemic.
David Ramos/Getty ImagesMicrosoft’s announcement Tuesday that it was delaying the launch of its forthcoming Halo Infinite caused ripple effects across videogame publisher and semiconductor stocks in late-afternoon trading.
Investors were likely reacting to the importance and impact that marquee titles such as the now-delayed Halo Infinite may have on the launch of the next-generation system. With one less reason to buy an Xbox Series when it launches in November, Microsoft (ticker: MSFT) may have ceded crucial ground to rival Sony (SNE) and its PlayStation 5, which is also scheduled to launch in the fall.
Neither company have announced an exact launch date or price.
In a blog post Tuesday, Microsoft said that it was delaying Halo Infinite until 2021 because of several development challenges, including the impact of the Covid-19 pandemic. The company said that it aimed to balance the well-being of the team with its aim to deliver an ambitious product. Microsoft, through a spokesman, declined to elaborate further.
If Microsoft indeed can’t sell as many consoles because of the delayed Halo title, it would mean hardware supplies such as Advanced Micro Devices—and large videogame publishers that rely on consoles for a significant portion of their revenue—may suffer from the collateral damage.
Microsoft stock fell 2.3% to close at $203.38 Tuesday. Advanced Micro Devices (AMD) fell more than 6.5% to $76.88 after an already lackluster day. Large videogame publishers such as Activision Blizzard (ATVI), Electronic Arts (EA,) and Take-Two Interactive Software (TTWO) all fell toward the end of Tuesday’s regular session.
Sony’s PlayStation 5 also uses AMD’s semiconductors to power the device. AMD rival Nvidia’s (NVDA) shares also fell during regular trading, a day after one analyst predicted the company would see revenue gains from players upgrading their videogame computers because of performance standards set by the new consoles.
Write to Max A. Cherney at max.cherney@barrons.com
August 12, 2020 at 03:21AM
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Why Microsoft Delaying ‘Halo Infinite’ Until 2021 Hurt AMD and Videogame Publisher Stocks - Barron's
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