Bethesda Takes a Beating as Microsoft (NASDAQ:MSFT) Cuts Costs - TipRanks.com

Microsoft's acquisition of Bethesda Game Studios initially seemed promising until the release of "Starfield," which disappointed many gamers. This led to Microsoft cutting costs and planning to shut down four Bethesda studios, including Arkane Austin and Tango Gameworks, causing a slight drop in Microsoft's stock in recent trading.

Additionally, Microsoft is enhancing its focus on artificial intelligence, developing a new AI model named MAI-1 with about 500 billion parameters. This move aims to strengthen its position in the AI field, potentially outpacing competitors like OpenAI, in which Microsoft has invested. Wall Street analysts currently rate Microsoft as a Strong Buy, suggesting a significant upside potential for its stock.