Xbox Revenue Declines Amid Strong Growth in Microsoft's Cloud and AI Businesses
Microsoft reported a decline in Xbox revenue, with content and services dropping by 10 percent and hardware sales falling by 14 percent. This comes after Xbox head Asha Sharma announced significant restructuring efforts including layoffs and the sale of four game studios. The company also plans to increase console prices starting August 1st. In contrast, Microsoft's cloud business saw a strong performance with revenue rising 27% year-over-year to $59.3 billion. Its productivity segment, which includes services like Microsoft 365 and LinkedIn, grew by 14 percent to reach $37.8 billion in the same period. The Windows OEM and devices segment also experienced a decline of 7%, attributed to reduced PC market demand.
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Topics: AI business cloud revenue growth Microsoft earnings Xbox