Great thread OP.
Wish MS was as transparent with their financials. This is the difference from a company that has something to hide VS. the market leader.
I can't prove it, but I've been talking to some of my local friends that are brokers and do a lot of small business trading. ANd I'm an idiot when it comes to stock stuff, but the changes Microsoft made back in 360 days looked like business as usual as they changed a lot internally in how they measure, track financials. But it feels like these changes were to change how Gaming division looked as it was a eye sore for over a decade on NPD, and stock exchanges. They changed into service based for software like Windows/Office. They integrated azure into all enterprise regardless if some sectors for servers were for gaming.
PC gaming, XBox, enterprise software are now all kind of together now? SO even on its own if software isnt doing well its accounted into the same sector as enterprise subs/sales. Same goes into their own PC/Surface hardware. I mean I get when you make major changes within the company trajectory, which totally happened.
Microsoft went like adobe into more of a service company with everything they make even servers is for other companies to rent servers for what ever use. And thats considered a service, but because its their own Azure now on a sheet they can show server/enterprise growth and service growth at the same time?
But how does this have to do with games? Gamepass is now accounted into same sector as Office, and any account thats created/accessed via cloud/local/mobile/PC/Console is counted.I feel if a investigation was made it would be shown that specific changes that pertain to the gaming sector were made to prop up losses/slow growth compared to individual sectors which was how they had things in 360 days.
I mean I get it, its not different than what a lot of companies do now. But if your gaming sector you put billions into only metrics are growth and not sales, how do you as a investor get detailed break downs of how things are doing at retail, or direct to consumer?
Why hide? I think it's because it would hurt stock highs. WHich is why they always talk in %. Instead of we sold X/it cost X to produce operate compared to last year. All they show is revenue. What are the costs? Like are they doing weird write offs because everything is all internal because it's categorized as rolled all into one?
It's just weird that you can look at Sony which is not just a game company. Look at how TV's/Mobile/Movie/Music+gaming are doing individually number wise, but you cant nail down how XBox is doing because its all muddied.