Microsoft’s Xbox hardware revenue continues to decline, with the company revealing a 33 percent decline as part of its earnings report released on Wednesday. Even as the rest of Microsoft’s consumer-focused divisions declined, the company’s cloud and productivity businesses continued to grow, bringing company revenue to $82.9 billion.
In addition to the executive shuffle, Microsoft has pushed AI further in recent months, with the company reporting $54.5 billion in revenue from its cloud business, representing a 29 percent increase year over year. “We are focused on providing cloud and AI infrastructure and solutions that empower every business to maximize their results in the agentic computing age,” Microsoft CEO Satya Nadella said in the press release. “Our AI business has surpassed $37 billion in annual revenue, up 123% year-over-year.” Revenue earned by Azure and other cloud services increased 40 percent.
Microsoft 365 Copilot also saw growth, with paid seats increasing from 15 million to 20 million in the last quarter. Microsoft continues to build out its productivity suite with new AI features, including the launch of “Vibe Working” features in Excel, Word and PowerPoint. The company says Microsoft 365 consumer cloud revenue grew 33 percent during the quarter, while its commercial segment grew 19 percent.
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