Microsoft reports sinking Xbox revenue as its cloud business climbs

Microsoft’s Xbox hardware revenue continues to tumble, with the company revealing a 33 percent decline as part of its earnings report released on Wednesday . Even though the rest of Microsoft’s consumer-focused division took a dip, the company’s cloud and productivity businesses continue to soar, driving the company toward $82.9 billion in revenue. Along with declining Xbox hardware revenue, Microsoft reported a 5 percent drop in Xbox content and services as well. Microsoft has seen a significant amount of executive turnover over the past few months, with the retirement of Xbox chief CEO Phil Spencer and the departure of former Xbox president Sarah Bond. This has left former Microsoft CoreAI head Asha Sharma in charge of the gaming giant, which has struggled with its identity in recent years . Already, Sharma has lowered the price of Xbox Game Pass and has taken steps to rebuild Xbox’s identity . In addition to an executive shuffle, Microsoft has only pushed further into AI in recent months, with the company reporting $54.5 billion in revenue from its cloud business, marking a 29 percent year over year increase. “We are focused on delivering cloud and AI infrastructure and solutions that empower every business to eval-max their outcomes in the agentic computing era,” Microsoft CEO Satya Nadella said in the press release. …