Microsoft's latest quarterly report shows Xbox content and services revenue fell 10 percent. The decline follows recent job cuts and studio closures across the gaming division.
The report, released on July 30, covers the most recent financial quarter and forms part of a broader 4 percent decline to $12.9 billion in Microsoft's personal computing business. Company-wide revenue reached $90 billion, driven mainly by growth in cloud and AI services.
Chairman and chief executive Satya Nadella addressed the Xbox performance during the earnings call. He stated the company is making decisions across content, platform and operations to reset the business for long-term growth, adding that it expects to return the division to growth in fiscal 2027.
Earlier this month Microsoft announced 3,200 layoffs in the Xbox division, with 1,600 taking effect immediately. The company also closed four studios, and Double Fine announced further cuts on July 29 following its new independent status.
Nadella noted the division holds strong intellectual property and talented studios worldwide. The report provides no additional details on Xbox performance beyond the revenue figure.
