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My discomfort with Microsoft's strategy and durability of the moat led me to liquidate my position in Q1 and I'm not eager to buy in even at today's lower price, although the company remains on my radar if it can be purchased at a price that assumes Windows is a wasting asset. For me the key question is: Will Microsoft protect and grow the Office franchise or will they continue to use it as leverage to protect Windows? If I see a move toward iOS and Android versions of Office, that will go a long way toward alleviating my concerns regarding Office being used to protect Windows.
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I think as an investment, it's not too bad at these levels. We've heard many that came on board and touted growth into the $30's. But it was proven unsustainable, partly due to results, and mostly due to a lack of leadership in any key area.

Myself? I've never been confident that a reliance on Xbox and Kinect would produce much to the bottom line, never mind growth. The way they rolled out Surface and Windows 8 led me to believe they really are throwing stuff against the wall to see what sticks.

You mentioned a key point, OFFICE. Without it, Microsoft has little leverage in the desktop growth arena. I don;t see them porting it to Android or IOS anytime soon. It could offset the decline in Windows, for a period of time. Overall, I still believe if they do make full versions available, large layoffs and a new CEO and business model will follow closely behind. If 2013 resembles 2012, Microsoft will be a far different company thereafter.

None of this is saying they will go away. Investments in Enterprise, servers and tools will always be a huge factor in the PC world, and they compete well there.
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