Microsoft’s Xbox sales slump deepens as hardware dives and layoffs loom

Microsoft reported mixed results: Xbox revenue fell 7% for the full year and 10% in Q4, with hardware revenue dropping 29% year over year as console sales slump. Game Pass growth helped cushion declines in More Personal Computing, but total quarterly revenue rose to $90 billion and full-year revenue reached $331.8 billion, with net income of $133.7 billion. The company announced about 4,800 job cuts globally, including 1,600 at Xbox, alongside studio restructurings as it pursues AI-driven growth.