“For Entertainment Purposes Only”: Microsoft Stock (NASDAQ:MSFT) Slips as Copilot Warnings Emerge

You will likely remember how much time, effort, and resources tech giant Microsoft MSFT -0.37% ▼ put into developing Copilot. You will likely also remember how much it put into putting Copilot into pretty much everything. Now, Copilot’s credibility just took a huge hit as Microsoft declared Copilot is “…for entertainment purposes only.” The huge new part of Microsoft’s operation is, basically, a game. Investors were displeased, though only slightly, as shares slipped fractionally in Monday afternoon’s trading.

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A look at the Microsoft Copilot Terms of Use recently unveiled the disturbing notion that, just maybe, Microsoft’s Copilot is not all it is cracked up to be. Nor, potentially, is it worth the massive investment that Microsoft has piled into it. The terms and conditions, updated in October 2025, reveal that the large language model (LLM) is intended for entertainment use only, and should not be used for “important advice.” Then, in the final nail in the coffin, Microsoft declared: “Use Copilot at your own risk.”

The language is described as “boilerplate,” and likely in place more as a preemptive move against lawsuits. But it clearly runs against the spirit of a lot of marketing and public relations efforts that Microsoft has engaged in over the last several months.

Old Games Coming Back

Meanwhile, an exciting bit for retro game fans hit recently, as Xbox 360 games that had once been removed from the Xbox Store made a brief return appearance. The games in question were delisted within hours, reports noted, but their brief return to the store had some looking for word about backward compatibility.

Word from GDC 2026 revealed that game preservation would be a bigger part of Microsoft’s operations than it was previously, especially given the 25th anniversary of Xbox taking place this year. Microsoft formally shuttered backward compatibility in 2021, pointing out licensing issues and technical limitations. But now, with a new system likely to emerge next year, an Xbox 360 emulator may be coming soon, designed to work on the likely-PC-style Xbox Helix.

Is Microsoft a Buy, Hold or Sell?

Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 4.36% rally in its share price over the past year, the average MSFT price target of $582.17 per share implies 56.31% upside potential.

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