MS share performance:
Projected to be a $400-per-share stock soon.
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wtf - 
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Theyâre really about to buy Take 2 arenât they 
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donât think so about Take2, but this would be a reason to buy soon. Their shares are predictably growing.
In pre-trading, it was up by $8 today. Its been lift-off since then. Its previous high before this week was $306 (I think).
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2.44 tn versus 2.47 tn Apple - these are monster figures.
I donât know about inflation etc. pushing them to invest, but this certainly will push them to invest.
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wtf the last time I checked it was at like $270 lmao
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I brought 3 shares, max price at $257. As a Brit, knowing that the UK economy is underperforming, Iâm happy to invest stateside and into MS. Its just such a well run company right now, with a cloud infrastructure second only to AWS, some top-class hardware (Surface/Xbox) and a top CEO.
The latest results would have been even more impressive if there wasnât a semi-conductor shortage, that prevented MS from making more Xbox consoles.
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If you want to put the financial scale they are operating at in perspective, their value is up 100 billion dollars from yesterday. Or about 75% percent of Sonyâs total market cap.
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From earnings transcript:
This holiday season, weâll bring our biggest lineup of content and exclusive games ever, with three new AAA titles including Halo Infinite available via Game Pass subscription service, which continues to offer the best value in gaming. Weâre also bringing xCloud gaming to the console for the first time, enabling Xbox users to discover the stream, and stream more than 100 games with just a click. Cloud gaming is now available in 26 countries, including, as of this quarter, in Australia, Brazil, Mexico, and Japan. We are expanding our opportunity with independent creators, as well as top studios. Updates to Azure PlayFab make it easier for developers to integrate the creator marketplace in games they built.
And leading publishers from Bungie to Krafton are all relying on our cloud to scale and operate their games. In closing, we have the most diversified set of digital businesses, and we are innovating to expand our opportunity across the entire portfolio to help our customers in this new era. Next week, weâll hold our flagship Ignite conference, where we will share the next chapter of Microsoft Cloud from the metaverse to large-scale AI, from hybrid work to hybrid infrastructure. I couldnât be more optimistic about the opportunities ahead.
And in gaming, revenue increased 16% at 14% in constant currency, ahead of expectations. Better-than-expected console supply, and continued strong demand resulted in Xbox hardware revenue growth of 166% and 162% in constant currency. Xbox content and services revenue increased 2% and was relatively unchanged in constant currency against a strong prior-year comparable. Segment gross margin dollars increased 10% and 8% in constant currency. Gross margin percentage decreased roughly one point year over year, driven by sales mix shift to gaming hardware.
And in gaming, on a high prior-year comparable that included the launch of our new consoles and strength across Xbox content and services, we expect revenue growth in the high single digits. Console sales will continue to be impacted by supply chain uncertainty.
And in Xbox content services, we expect revenue growth in the mid-teens with strong engagement on the Xbox platform in a holiday quarter that will include several AAA title launches.
Operating expenses increased 15%, driven by the ZeniMax acquisition, as well as Windows 11 marketing. Operating income grew 7% and 5% in constant currency
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âBut how can they afford Game Pass!?? Its unsustainable!!â
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I think itâs inevitable unless Sony acts quickly and can make their ecosystem available on any device (natively on PC with cross buy, on any device through the cloud) before Ms explodes.
Iâm thinking the next year is going to be the decisive one. Ms will have the infra world wide, the games (Halo FH5 and Starfield) and the subscription model all finally set to have their plans explode and be the streaming service of choice that enjoys the benefits of being the first.
Of course, if Sony gets their shit together they can use Azure and ramp up the cloud offerings really quickly and they have the big games too, so if they act quickly they could be the ones too
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In Summary:
â Daniel Ahmad (@ZhugeEX) October 27, 2021
- Xbox Series X|S sell in is now over 8m (Estimate)
- Xbox Game Pass subscriptions are over 20m (Estimate)
- Series X|S hardware still supply constrained overall
- Content & Services is the long term driver of growth + will grow this holiday thanks to Halo.
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I donât really generally like these sorts of Xbox VS PS letâs compare everything posts but this is a very important point that I find it amazing isnât made across the internet when these financial comparisons are made.
Sony and Microsoft arenât competitors. They arenât on the same planet let alone in the same league. Microsoft are also enjoying right now their most successful period ever (depends how you want to measure but Iâm going to take market cap and value). They are riding higher than almost everyone else in a different stratosphere to Sony or Nintendo. And they are doing that with gaming as one of their core central pillars and gamepass as itâs major service. This fundamentally means Sony have missed their one and only chance last gen to drive Microsoft out of games. Itâs like in sport where you fail to take your chances and your opponents inevitably come back.
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Bruh donât forget FH5 just like that, Mr. Analyst. As things stand so far before Infinite, FH4 was played by more people than any Halo game. Forza Horizon is the closest IP Xbox has to a âglobalâ IP, for example where I live people barely know Xbox and yet a lot of people here also are aware of FH and would like to play it, itâs the only one close to a âsystem sellerâ here for sure.
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It is an xbox/videogame forum after all. I could compare them to any number of companies and the point remain equally relevant, but Sony is the most pertinent to this board.
What you posted is the exact spirit of the post, contextualizing the different worlds these companies exist in and how important that context is to their âwe are all in on gamingâ philosophy.
I certainly hope no one takes it as a Xbox vs PS post.
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Xbox has the most global IP of all of them.
And if we are talking about valuations: Minecraft is probably more worth than all of Playstation when Roblox already has a market capitalization of around 50 billion $.
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Nah, I donât think that. Halo and Gears are western oriented for the most part. Minecraft is not associated or exclusive to Xbox so itâs not in this conversation. And listen, itâs not like Halo and Gears canât be taken to a global presence period, itâs that MS hasnât even bothered with localization & expanded global presence to begin to do that, yet still Forza Horizon managed to be known globally and be considered a system seller. I should know this because Iâm in a âglobalâ market which is the MENA.
Wow that does put things in perspective. Thatâs a great point that most gamers arenât even aware of.
Thatâs just nuts
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