If You Invested $1,000 in Microsoft Stock When Xbox Released, Here's How Much You'd Have Today

Technology giant Microsoft Corp MSFT has grown over the years through new products, acquisitions and the growth of its core operating segments.

In 2001, the company unveiled the Xbox game console which would compete against competing companies and also provide additional revenue for the company.

Here's a look at how investors would fare if they managed to grab Microsoft shares when the Xbox was released.

What happened: Xbox was unveiled by the company in January 2001 by wrestler and actor Dwayne "The Rock" Johnson, who told an audience that the console game would be a hit for many years. .

On November 15, 2001, the Xbox console was released and became an instant favorite among gamers.

The introduction of the Xbox put Microsoft in a battle with Sony Group Corp SONY and Nintendo Co NTDOY for video gamer hardware and software revenue.

Microsoft has invested in gaming acquisitions and its Xbox Live service derives a recurring revenue stream from subscribers.

The original Xbox sold over 24 million copies and was considered a modest success for the company. The Xbox 360 released in 2005 fared much better with over 80 million units sold. The latest units in the console series are Xbox Series S and Xbox Series X, which were released in 2020.

In the fourth quarter, Microsoft reported mixed results for the Xbox games division with hardware revenue down 13% year over year and content revenue and Xbox services up 5% year-over-year.

Microsoft reported a record fourth quarter for monthly active users and Xbox Game Pass revenue. The company saw the number of hours played increase by 22% year over year.

Going forward, Microsoft continues to work towards completing the acquisition of video game giant Activision Blizzard ATVI, owner of Call of Duty, Diablo, World of Warcraft, Candy Crush and other franchises.< /p>

Microsoft expects mid-digit gaming revenue growth in the future.

Related link: How Bill Gates Almost Killed Xbox: "It's an Insult to Everything I've Done"

Invest $1,000 in Microsoft Stock: Investors who thought Xbox was going to be a hit for Microsoft could have bought shares of the tech giant in 2001.

A $1,000 investment in Microsoft stock on November 15, 2001 could have purchased 15.12 shares of MSFT. A 2-for-1 stock split that occurred in 2003 would have hypothetically purchased 30.24 shares.

Based on a Microsoft stock price of $335.31 at the time of writing, the $1,000 investment in Microsoft would be worth $10,139.77 today today. This represents a hypothetical return of 914%.

For comparison, the same $1,000 invested in the SPDR S&P 500 ETF SPY, which tracks the broader S&P 500 market index, would be worth $4,020.90. This represents a hypothetical return of 302% over the same period.

Alternatively, the same $1,000 would be worth $2,082.69 today if the investor put the money into Playstation console maker Sony instead. The hypothetical 108.3% return of Sony shares over the same period is significantly lower than the return of Microsoft, the owner of the Xbox console.

Returns do not include dividends paid along the way.