New details from Microsoft reveal that Xbox saw a 10 percent drop in revenue across content and services this last financial quarter, following a massive wave of layoffs and the offloading of development studios. For example, Cloud and AI are plastered on the title of the report, and are credited for fueling the $90bn quarterly revenue result. As for Xbox, Nadella did speak briefly about the gaming division in an earnings call coinciding with this quarterly report. It was earlier this month Microsoft announced 3,200 layoffs across its Xbox gaming division, with 1,600 of those job cuts being implemented immediately. But it's a deep financial blow to an already struggling gaming company, marching headfirst into a near-future that's unlikely to get any kinder on the economic front.