Xbox hardware revenue plunges 33% YoY as Microsoft refocuses on Game Pass and AI growth
Microsoft posted a mixed Q3: revenue rose to $82.9B (up 18%), driven by Cloud/AI, while Xbox hardware revenue dropped 33% year over year and overall gaming slid 7%, with Game Pass price cuts following a prior price hike. CFO and leadership said Microsoft will focus on fundamentals, sustain Game Pass value, and push growth through new markets and creator platforms under the refreshed Xbox leadership.