Xbox CEO Reacts To Yet Another Disappointing Period For Xbox

Microsoft has released its latest earnings report, and while the company overall posted huge gains for revenue and profit, the Xbox division continued to show downward, negative trends. The tough times at Xbox are expected to continue as well, as Microsoft forecast further declines to come. The Xbox business has been slumping for some time, so this was just the latest quarter of declines for the gaming unit at Microsoft.

Xbox is part of Microsoft's "More Personal Computing" division, and gaming revenue decreased by $380 million, or 7%. The decline was driven by lower content on Xbox content and services, and hardware results coming in softer. Xbox content and services dipped by 5%, while Xbox hardware revenue slumped by 33% due to fewer consoles sold.

Gross margin for the entire More Personal Computing division increased by 6%, driven by Microsoft's advertising and gaming businesses, the company said. Additionally, a benefit to selling fewer consoles meant that cost of revenue decreased by 10%, falling to $584 million. That's not entirely attributable to lower Xbox sales, though, as Microsoft offers a variety of other hardware platforms.