Xbox reports 10% content revenue drop while Microsoft hits $90B
Business
Xbox just reported a 10% dip in revenue from content and services like Game Pass, as part of a big reset led by Xbox head Asha Sharma.
The shake-up includes layoffs and spinning off four game studios.
Even with these gaming challenges, Microsoft overall is doing well: total revenue jumped to $90 billion, thanks mostly to its booming cloud and AI businesses.
Xbox hardware sales slip 13%
Xbox hardware sales slipped another 13%, showing the reset is hitting on multiple fronts.
To adapt, Xbox is lowering Game Pass prices, testing ad-supported cloud gaming, and plans to raise console prices by at least $100 starting August 1.
Meanwhile, Microsoft's productivity tools like Microsoft 365 and LinkedIn are still growing fast, helping balance out the gaming slowdown.