Microsoft (NASDAQ: MSFT) launched its next-generation Xbox consoles today, marking the official start of a new gaming console hardware cycle. It's also the first time the company has started a hardware generation by launching two consoles with different performance tiers. The high-powered Xbox Series X retails at $499, while the entry-level Xbox Series S is priced at $300. Both appear to be sold out and could remain hard to find heading into the Thanksgiving holiday. The Series X is in particularly high demand, with consoles currently fetching over $1,000 per unit on eBay. Image source: Microsoft. What do Xbox Series X and Series S mean for Microsoft? Microsoft's new Xbox systems appear to be enjoying a strong debut, but they won't get much of a head start. Sony is set to launch its PlayStation 5 console in the U.S. on Nov. 12. The Series X is Microsoft's most powerful console ever, and significantly more powerful than Sony's PlayStation 5 by most accounts. However, Microsoft appears to be pursuing a broader software and services strategy this time around instead of prioritizing a single hardware platform. The company is making a big effort to promote its Netflix-like subscription-service, Xbox Game Pass. It's also looking to make its big-budget games and overall subscription library accessible through its xCloud streaming service. The lower-priced Series S console is still powerful compared to previous Xboxes, but it's much weaker than the Series X. The level of difference reflects Microsoft's goal of building a bigger gaming ecosystem. With the company also making its premium content available across PC and streaming-based mobile platforms, this hardware cycle already looks very different. 10 stocks we like better than MicrosoftWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Microsoft and Netflix. The Motley Fool recommends eBay and recommends the following options: long January 2021 $18 calls on eBay, long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, and short January 2021 $37 calls on eBay. The Motley Fool has a disclosure policy.Source