Microsoft announced a decline in Xbox revenue as its cloud business rose

Microsoft’s Xbox revenue continues to decline, with the company revealing a 33 percent decline as part of its earnings report Released on Wednesday. Although the rest of Microsoft’s consumer-focused division has declined, the company’s cloud and productivity businesses continue to rise, pushing the company to $82.9 billion in revenue.

In addition to the executive shake-up, Microsoft has only pivoted toward AI in recent months, with the company reporting $54.5 billion in revenue from its cloud business, representing a 29 percent year-over-year increase. “We are focused on delivering the infrastructure, cloud and AI solutions that enable every company to maximize their results in the age of agent computing,” Microsoft CEO Satya Nadella said in the press release. “Our AI business exceeded $37 billion in annual revenue, an increase of 123% year over year.” Revenue generated by Azure and other cloud services rose 40 percent.

Microsoft 365 Copilot also saw growth, with the number of paid seats jumping from 15 million in the previous quarter to 20 million. Microsoft has continued to build out its productivity suite with new AI features, including the launch of “Dynamic Work.” Features across Excel, Word, and PowerPoint. The company says Microsoft 365 consumer cloud revenue increased 33 percent during the quarter, while its commercial segment increased 19 percent.