Xbox Revenue Drops 10 Percent as Microsoft's Cloud and AI Business Surges The latest quarterly numbers from Microsoft paint a bleak picture for its struggling Xbox division, with revenue from content and services plummeting 10 percent and hardware sales taking an even steeper 13 percent hit.
This decline comes despite the company's efforts to revamp its gaming strategy under the leadership of Phil Spencer. Microsoft's cloud and AI business, on the other hand, continues to soar.
The company's investments in artificial intelligence and cloud computing have paid off, with revenue from these segments surging by double digits.