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.
Microsoft’s cloud division revenue soared 27 percent to $59 billion.
Microsoft’s cloud division revenue soared 27 percent to $59 billion.
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
Psychonautscreator Double Fine Productions. Sharma has also made some other big changes to Xbox, including
[lowering GamePass prices](/news/915928/microsoft-xbox-game-pass-ultimate-price-drop), testing free,
[ad-supported cloud gaming](/games/969969/xbox-testing-ad-supported-streaming), and making
[Xbox exclusives.](/report/945639/xbox-exclusives-strategy-complicated-confusing)
*Gears of War: E-Day*and*Clockwork Revolution*Xbox also plans to raise the prices of its [consoles by $100 and more starting August 1st](/games/957042/xbox-price-increase-memory-shortage).
Meanwhile, Microsoft has ramped up efforts in AI. Its cloud business revenue soared 27 percent to $59.3 billion this quarter, while revenue from its productivity business, which includes services like Microsoft 365 and LinkedIn, spiked 14 percent to $37.8 billion.
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.”
Developing…
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