Xbox hardware revenue fell by 33 percent, although Microsoft still achieved $82.9 billion in revenue. Microsoft’s earnings report highlighted a decline in Xbox hardware revenue, alongside a 5 percent drop in Xbox content and services. Executive changes occurred, with retirements and departures shaking up leadership roles. These transitions left former Microsoft CoreAI head Asha Sharma in charge of Xbox, focusing on rebuilding its identity. The company also reported strong growth in cloud revenue, emphasizing advances in AI. Productivity tools like Microsoft 365 Copilot saw increased engagement and feature expansions. However, revenue from Windows OEM and devices dipped by 2 percent, impacted by a global memory shortage affecting Surface device pricing. Upcoming Surface Pro and Laptop models are anticipated to aid recovery.
Microsoft reports declining Xbox revenue while its cloud business rises
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