Microsoft has noted continued declines in Xbox content, services, and hardware revenue, on top of notable expenses related to the 1600 layoffs and studio divestures it recently made. It reported 18% growth in revenue overall, however: US $90 billion for the quarter, and US $331.8 billion annually.

Microsoft Reports $90 Billion In Q4 Revenue, Amid Continuing Xbox Declines and Layoff ExpensesMicrosoft CEO Satya Nadella remarked that Xbox will return to growth in fiscal year 2027, but declines are still expected next quarterthisweekinvideogames.com