Xbox Hardware Sales Plummet as Software and Services Flourish

Microsoft's focus shifts to expanding Game Pass and cloud gaming amid declining console revenue.

Xbox hardware revenue dropped by 42% in the latest quarter compared to last year.
Overall gaming revenue increased by 44%, driven by a 61% rise in services and software sales.
The Activision Blizzard acquisition significantly boosted Microsoft's gaming portfolio and revenue.
Microsoft now has 500 million monthly active users across its gaming platforms.
Console redesigns are planned, but hardware sales are expected to continue declining.