Xbox Strives for Growth by 2027 Amid Console Losses
Microsoft’s earnings show Xbox revenue declined about 10% year over year (11% in constant currency) and content/services also fell ~10%, as the division continues heavy investments and impairment charges after a major restructuring that chopped 1,600 jobs (with another 1,600 slated). CEO Satya Nadella reiterated a plan to reset Xbox and return to growth by fiscal 2027, but near-term prospects look weak since reports indicate the console still loses money per unit due to a component crisis, with hardware and content declines anticipated in the near term while the rest of Microsoft remains strong.