Xbox Revenue Dropped $1.7 Billion Last Year

Microsoft said Xbox revenue fell $1.7 billion last fiscal year, with weaker content and services sales and a 29% drop in hardware revenue.

The decline comes as Microsoft is resetting its gaming strategy, cutting jobs, and leaning more heavily on big franchises like Call of Duty, The Elder Scrolls, and Fallout.

Xbox consoles are also facing price increases and soft demand, adding pressure to Microsoft’s gaming business and hardware outlook.