1. Microsoft shares have declined 2.62% due to AI competition and Copilot's inconsistent performance, leading to a downgrade to a strong sell. 2. Customer dissatisfaction with Copilot's reliability and value threatens Microsoft's AI-driven growth, casting doubt on future earnings and market position. 3. Microsoft's high valuation metrics, coupled with slowing EPS growth and substantial Capex needs, suggest shares are overvalued and face a potential 26.19% downside.

➀ Microsoft CEO Satya Nadella discusses the growth of the gaming division, Xbox, emphasizing the importance of exclusive game content for growth; ➁ Nadella's statement seems disconnected given Xbox's recent trend of bringing more exclusives to other platforms; ➂ The article raises questions about the internal strategy and messaging at Microsoft.

➀ Microsoft CEO Satya Nadella addresses rumors about slowing down Xbox game ports to PlayStation and Switch; ➁ Nadella emphasizes the importance of Xbox exclusives and the company's commitment to extending content to new platforms; ➂ Nadella mentions the acquisition of Activision Blizzard and the addition of hundreds of millions of players to Microsoft's gaming ecosystem.

➀ Microsoft confirms 20 billion-dollar video game franchises; ➁ Call of Duty alone has made over $31 billion; ➂ Microsoft's acquisition of Activision Blizzard King expanded the portfolio significantly.

➀ Salesforce CEO Marc Benioff criticizes Microsoft's Copilot; ➁ Claims it lacks necessary data and security for real intelligence; ➂ Asserts Microsoft is in 'panic mode'; ➃ Introduces Agentforce as a solution

➀ The annual STEAM 2024 event returned to Thorpe Park, hosted by ACS International Schools and partners including Microsoft and Surrey Police. ➁ Over 10,000 students, 1,000 teachers, and 60 industry partners participated in workshops and activities. ➂ Graeme Lawrie, partnerships director at ACS International Schools, emphasized the importance of such events for developing essential workplace skills and fostering connections between industry and education.

➀ Microsoft is focusing on improving its xCloud game streaming service; ➁ The service is set to receive updates including direct-to-cloud controllers, improved streaming visual quality, and additional cloud gaming features; ➂ The move comes as Microsoft seems to be stepping back from console sales in some regions.

➀ Microsoft Azure's CTO suggests that the distribution of AI training is necessary as datacenters reach power grid limits; ➁ The rapid expansion of generative AI models requires more powerful hardware, pushing the limits of current datacenter infrastructure; ➂ Microsoft is investing in energy infrastructure and considering connecting multiple datacenters for advanced AI model training.

➀ The Xbox Partner Preview is scheduled for October 17th at 1PM ET, featuring new game trailers and updates; ➁ The event will showcase games like Alan Wake 2, Like A Dragon: Pirate Yakuza in Hawaii, and Wuchang: Fallen Feathers; ➂ Microsoft's Game Pass service and recent acquisitions of game studios will be highlighted, with an emphasis on the Xbox and PC platforms.

➀ Windows 11 introduces controller navigation for the on-screen keyboard, benefiting PC gaming handhelds; ➁ The update adds convenient shortcuts and vertical key alignment; ➂ This feature is a step towards better compatibility with PC gaming handhelds and may hint at more features to come.

➀ Microsoft will end support for Windows 10 in one year; ➁ Users will no longer receive security updates or technical support; ➂ Users have options to upgrade to Windows 11, switch to Linux or macOS, or purchase extended support for Windows 10.

➀ The early technical alpha of Microsoft Flight Simulator 2024 uses up to 180 Mb/s of internet bandwidth during gameplay; ➁ The game's data demands are around 81GB per hour at high LOD settings; ➂ Concerns about the impact on home internet plans and data caps.

➀ Microsoft is reportedly preparing a cloud-only subscription tier for Xbox Game Pass; ➁ The move follows a favorable ruling in the Epic v Google trial; ➂ Microsoft aims to expand its cloud gaming efforts and reach more users without actual Xbox consoles.

➀ Microsoft showcased its newest NVIDIA GB200 systems, highlighting the significant cooling requirements for these systems. The cooling solution, a large coolant distribution unit (CDU), occupies twice as much space as the GB200 compute rack. ➁ The systems are part of Microsoft Azure's next-gen NVIDIA training and inferencing platform, emphasizing the company's commitment to advanced AI models. ➂ The design of the cooling system is notably open, in contrast to other secretive organizations, showcasing Microsoft's confidence in its innovation.

➀ 343 Industries rebrands as Halo Studios; ➁ The Halo series transitions to Unreal Engine 5; ➂ The move aims to enhance game development efficiency and creativity.

➀ Krafton is acquiring Hi-Fi Rush from Microsoft; ➁ No acquisition cost for Tango Gameworks; ➂ Krafton re-forms the core team of Tango Gameworks.

➀ Microsoft has begun a phased rollout of Windows 11 2024 update, known as 24H2, aiming to introduce new foundational elements for AI experiences; ➁ The update includes several notable upgrades such as improved search, Wi-Fi 7 support, and a streamlined File Explorer; ➂ The update also brings new features like Recall, Energy Saver, and enhancements to the Microsoft Store.

➀ Microsoft has been struggling with its Xbox strategy, changing short and medium-term plans frequently; ➁ An insider claims that Xbox's plan changes every year, with inconsistent messaging on new projects like a handheld console; ➂ Microsoft's recent industry moves, such as acquiring Activision-Blizzard and studio closures, have been met with uncertainty and changes in direction.

➀ Microsoft is reintroducing its controversial Windows AI feature, Recall; ➁ The new version emphasizes security and privacy; ➂ Recall now uses a secure VBS Enclave to store data.