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Microsoft reports sinking Xbox revenue as its cloud business climbs

Microsoft reported a significant 33% decline in Xbox hardware revenue alongside a 5% drop in content and services, continuing a downward trend for the gaming division. The company's overall performance remains strong due to substantial growth in cloud and productivity businesses, which helped drive $82.9 billion in total revenue. These results come amid executive changes including the retirement of Xbox chief Phil Spencer.

Background

Microsoft operates both consumer gaming (Xbox) and enterprise cloud/productivity businesses, which often show contrasting performance trends in quarterly earnings reports. The company has been undergoing leadership changes in its gaming division recently.

Source
The Verge
Published
Apr 30, 2026 at 04:43 AM
Score
5.0 / 10