Microsoft’s Xbox division brought in more than $3.6 billion in the past three months.
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Xbox content and services, however, saw a decline of 3% in revenue.
Microsoft said the declines were attributed, in part, to lower first-party and third-party game sales.
Microsoft also reported “lower engagement hours” during the period.
However, “higher monetization” and growth in Xbox Game Pass subscriptions helped offset the overall declines.
Xbox is just one of Microsoft’s many internal divisions.
Microsoft just recentlylaid off about 1,000 employees.
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