For a long time, tech giant Microsoft (MSFT) was front and center when it came to buying carbon credits. While some may question the value of such things to begin with, Microsoft was more than happy to buy those little slices of ecological awareness that require no real change in behavior. But those days may be done, as Microsoft revealed that it is “…pausing future purchases of carbon removal.” The news was welcome to investors, and shares jumped over 2.5% in Tuesday afternoon’s trading.
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Reports note that Microsoft has not shut down its carbon removal program altogether, but it does plan to adjust the pace and volume of further purchases as events warrant. Chief sustainability officer Melanie Nakagawa, noted that Microsoft was continuing to “…refine our approach toward sustainability goals.”
One explanation, though, perhaps makes the most sense. Microsoft has been buying removal credits at a prodigious rate for some time now. It may simply have bought enough at this point to meet its goals of being carbon negative by 2030. With 45 million tons contracted back in 2025, and enough purchased in 2023 and 2024 to bring it to 72.5 million tons over the last three years, “enough” is not such a crazy prospect.
Game Pass is “Too Expensive”
Meanwhile, a common concern among gamers on at least one point may be about to be addressed. Specifically, the cost of Xbox Game Pass is just too high, and Asha Sharma is reportedly looking into the concept. A leaked memo revealed Sharma’s belief that “Game Pass has become too expensive for players,” and that Microsoft needs “…a better value equation.”
With Game Pass now sitting at $29.99 per month, and gamers increasingly growing frustrated over the surging costs of their favorite hobby, actually stepping in to do something about this is likely a smart idea. Just what will be done, or when relief will come, is as yet unclear. Though given the costs of Game Pass, the likely cost of the next Xbox, and the upcoming Steam Machine, it is clear that something has to give somewhere.
Is Microsoft a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 35 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 0.35% loss in its share price over the past year, the average MSFT price target of $574.62 per share implies 45.72% upside potential.
