Xbox Reorganized Under Microsoft's New Business Structure
Microsoft has reorganized its business structure into two main segments: Agents & Infra and Devices & Consumer. The former focuses on enterprise, Azure, and AI, while the latter encompasses Windows and Xbox. As a result of this change, Xbox is now classified under the Devices & Consumer segment.
The company will continue to release metrics such as revenue and active users, with no adjustments made to their reporting methods. This move aims to provide transparency to investors through updated product and services definitions in SEC filings.
Xbox's focus will shift towards content and services revenue growth, which includes games, in-game content, Xbox Game Pass, cloud gaming, advertising, and other cloud services. Microsoft plans to introduce paid xCloud game streaming hour packages as well as a free ad-supported option for users.