Microsoft up as Xbox One crushes it

Shares of Microsoft are up sharply Monday on reports that its Xbox One video-game console is having a banner holiday season.

Most retailers are reporting a lackluster Black Friday, but Xbox One is apparently shooting the lights out. The Xbox One is the #1 ranking console sold during Black Friday - and the #2 product overall behind a 16 Gigabyte iPad Mini, says market tracker Infoscout. That puts Microsoft's next generation console well ahead of the PlayStation 4 at 31% in the battle for Black Friday market share. The older Xbox 360 took #3 at 9%, Infoscout says.

Microsoft's efforts to turnaround Xbox One sales seem to be paying off. Microsoft decoupled its Kinect motion sensor, allowing consumers back in June to just buy the console at a lower cost. Price of the Xbox One has been aggressively cut and can be had for $329 with one game included.

These aggressive moves appear to be a game changer into the pivotal Black Friday period. Sales of Xbox One have been lagging those of Sony's PlayStation 4 for the first year after each console launched.

Microsoft's momentum can inject excitement into the console video game industry, said Brian Crecente, news editor of Polygon in a Black Friday story today. 'Neck-and-neck competition is the sort that best suits gamers, so lets all hope for a tie,' he said.

Shares of Microsoft (MSFT) are up about 2% this afternoon at $48.70.

The Xbox One is a bright spot on a shopping weekend that had fewer folks heading out to stores and spending less than in 2013. Nearly half of all shoppers (45%) planned to spend on technology products - from smartphones to TVs - higher than any of the last three years, said Shawn DuBravac, chief economist for the Consumer Electronics Association. 'This shows tech is poised to enjoy strong sales throughout the entire 2014 holiday season,' he said.