… Its Intelligent Cloud services also rose 32% to $39.3 billion, while Productivity and Business Processes grew 14% to $37.8 billion. The 4% revenue decrease in More Personal Computing was attributed to a 10% drop in Xbox content and services. …
… Intelligent Cloud revenue rose 30% to $34.7 billion. Azure and other cloud services grew 40% year over year, exceeding expectations. Microsoft's AI business reached an annual run rate of over $31 billion, a 123% increase. …
… That will take time, but we expect to return to growth by the end of 2027." In response to Xbox's performance, which also reported a 10% decline in quarterly revenue, Microsoft CEO Satya Nadella stated the company "making the necessary decisions required across our content portfolio, platform, and … …
… It’s worth noting that the Windows business also had a torrid quarter, with revenues dropping 7% - and that was also essentially a rounding error compared to the gigantic numbers flowing through the company’s Cloud services. …
… Microsoft does not break out studio-level revenue in its public financial disclosures, and neither the company nor Blizzard has publicly confirmed the figures cited in the leaked emails. …
… Despite lower content and hardware revenue, Xbox achieved record levels of monthly active users and streaming hours. Microsoft CEO Satya Nadella said Microsoft was "doing the foundational work required to win back fans and strengthen engagement" across its consumer business, including Xbox.
… Their departures follow a report that Xbox CEO Asha Sharma is looking at sweeping job cuts at the company , having spoken of a need to "reset the business" after it spent over $20 billion over a five-year period during which revenue deteriorated by nearly $500 million . …
… It is not known how many people will be impacted, but it is thought that Xbox is planning to "significantly slash budgets for marketing and some other areas of the business." Xbox declined to comment. …
… Activision Blizzard was a solidly profitable business pre-acquisition, and it immediately added billions of dollars to the gaming division's annual revenues once the acquisition completed. …
Analysts tell GamesIndustry.biz that Microsoft's decision to cut the price of Game Pass and remove Call of Duty as a day-one offering was an expected response to the latter's limited impact on driving subscription revenue, although opinions differ on the impact on Call of Duty revenues. …