00:00Xbox just had its worst quarter in years. On the back of seismic layoffs in its gaming brand,
00:06Microsoft reported a 10% decline in Xbox content and services revenue in its fourth quarter report
00:12for the 2026 fiscal year, making this the worst quarter for Xbox revenue since the first quarter
00:18of FY 2024. For the whole year, Xbox revenue is down about $1.66 billion. It's alright though,
00:26Microsoft says its $3.2 billion investment from AI company Anthropic is helping out and its
00:33operating income was $40.6 billion for the quarter anyhow. The company's total revenue for the quarter
00:39was $90 billion on the dot, the highest in at least several years. CEO Satya Nadella is not short on
00:47praise for AI. They said this year, Azure revenue surpassed $100 billion for the first time and
00:53Microsoft 365 co-pilot reached over 30 million paid seats, reflecting the confidence customers
01:00are placing in us to power their AI transformation. What do you think? Could this be the beginning
01:05of the end for Xbox as we know it?
Comments