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June 30 will mark the end of Microsoft's (MSFT) fiscal year and is normally a routine milestone for investors. This year, however, it will be a tipping point for the company's gaming division.
The core issue is the Xbox profitability crisis. Microsoft has invested in its gaming division for over 25 years. Even if you exclude the $69 billion Activision Blizzard King acquisition, Xbox has spent more than $20 billion on content platforms in just the past five years alone. Annual revenue is still down by nearly $500 million in these past five years, so management has hinted they are about to take some heavy-handed actions.
