GoKawiilis a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.
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Xbox is having yet another tough quarter, as revenue from content and services like its Game Pass subscription dipped 10 percent over the past few months. At the same time, Xbox hardware sales declined 14 percent, according to Microsoft’s fourth-quarter earnings report released on Wednesday.
The news comes just weeks after Xbox head Asha Sharma announced a “reset” plan for Xbox that included sweeping layoffs and the spinoff of four games studios, including South of Midnight developer Compulsion Games and Psychonauts creator Double Fine Productions.
As Microsoft ramps up efforts in AI, its cloud business has pushed the company’s overall revenue to $90 billion. Microsoft Cloud revenue soared 27 percent to $59.3 billion over the past few months, while revenue from its productivity business, which includes services like Microsoft 365 and LinkedIn, spiked 14 percent to $37.8 billion. Microsoft 365 Copilot also reached more than 30 million paid seats and Azure revenue hit more than $100 billion for the first time.
But Xbox wasn’t Microsoft’s only segment on the decline. The company’s Windows OEM and devices segment decreased 7 percent “driven by lower PC market demand.” Microsoft took the wraps off a new Surface device with RTX Spark, Nvidia’s new Arm-based processor in June, and is also starting to make quality-of-life changes to Windows 11 as it aims to regain user trust.