Overview
- Microsoft, which reported results Wednesday, posted $82.9 billion in revenue as Xbox content and services fell 5% and console hardware dropped 33% year over year.
- Microsoft Cloud revenue reached $54.5 billion, Azure grew 40%, and the company said its AI business hit a $37 billion annual run rate, up 123%.
- New Xbox leader Asha Sharma is refocusing on core fans, with recent Game Pass price cuts and record highs for monthly users and streaming that have not yet lifted revenue.
- Third‑party analyses cited this quarter as the lowest Xbox Series hardware revenue of the generation, with prior price hikes and tight memory supply reported as headwinds.
- To meet AI demand, Microsoft plans roughly $190 billion in 2026 capital spending and expects a smaller workforce over the next year.