Technology

Microsoft's gaming division flounders while the firm makes more money than ever — Xbox consoles sales drop 32%

Source

Tom's Hardware

Published

Jan 30, 2026

TL;DR

AI Generated

Microsoft's gaming division has seen a significant decline in revenue, with a $623 million drop compared to the previous fiscal quarter, attributed to decreases in Xbox hardware and services sales. Despite this, Microsoft assures Xbox fans of its commitment to the gaming market. Gaming revenue is a small portion of Microsoft's overall income, with the company focusing more on cloud services like Azure and investments in AI. The article highlights that while gaming may not be a primary focus for Microsoft, it remains a significant aspect of its business.

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Amazon unveils 'Resilient Network Graphs' data center network that cuts hardware by 69% and boosts throughput by 33% — now the default for most AWS workloads

Amazon has introduced a new data center network architecture called Resilient Network Graphs (RNG), boasting a 33% increase in throughput and a 40% reduction in power consumption. This design, based on random graph theory, replaces traditional hierarchical structures with a flatter, more efficient network. By using 69% fewer networking devices, Amazon anticipates up to 45% cost savings and billions in reduced infrastructure expenses across its cloud services. RNG is already in use in various data centers and is set to become the standard for future deployments, offering improved performance and sustainability for AWS workloads.

Tom's Hardware•

2 weeks ago

Microsoft launches Cloud‑Initiated Driver Recovery for remote rollback of faulty updates — no user action or OEM intervention will be needed to handle broken drivers delivered via Windows Update

Microsoft has introduced a new feature for Windows called Cloud-Initiated Driver Recovery (CIDR) that allows the remote rollback of faulty drivers to a previously known good version without user or OEM intervention. This feature aims to address issues caused by bad drivers pushed through Windows Update, which have historically led to user inconvenience and manual intervention. The recovery process is initiated from the Hardware Dev Center and executed through the Windows Update pipeline, leveraging existing infrastructure. CIDR is currently undergoing validation and testing and is expected to support the Hardware Dev Center publishing process automatically starting in September.

Tom's Hardware•

4 weeks ago

AMD to broaden and specialize EPYC CPUs, already working on Zen 7 architecture — increased customization to better address evolving AI and cloud needs

AMD is planning to expand and specialize its EPYC CPUs to better cater to the diverse needs of modern data center workloads, including AI and cloud requirements. The company is already working on the Zen 7 architecture to offer increased customization for different workload-specific segments. AMD's CEO, Lisa Su, highlighted the shift towards more segmented EPYC products, potentially featuring different core/cache/interconnect configurations tailored for specific tasks like inference clusters and low-latency AI. The company aims to provide a broad portfolio of CPUs, acknowledging the need for differentiation in general-purpose operations, head nodes, and agentic AI tasks. With the upcoming Zen 6 microarchitecture, AMD plans to introduce CPUs with up to 256 cores for general-purpose servers and specialized processors for AI infrastructure.

Tom's Hardware•

1 month ago

Google, Microsoft, Meta, and Amazon capex spending to hit $725 billion in 2026, up 77% from last year — analyst says bear thesis is 'garbage'

Google, Microsoft, Meta, and Amazon are projected to collectively spend $725 billion on capex in 2026, a 77% increase from last year. Google saw strong cloud revenue growth, while rising memory chip prices impacted spending forecasts for Microsoft and Meta. Analysts believe the AI economy is robust, dismissing bearish perspectives. Alphabet's net income surged, with Google Cloud outpacing competitors and the company's capex guidance rising to $190 billion. Shares of Alphabet rose 7% after hours, pushing the company towards a record $4.3 trillion market valuation.

Tom's Hardware•

2 months ago

Amazon unveils 'Resilient Network Graphs' data center network that cuts hardware by 69% and boosts throughput by 33% — now the default for most AWS workloads

Tom's Hardware•

2 weeks ago

Microsoft launches Cloud‑Initiated Driver Recovery for remote rollback of faulty updates — no user action or OEM intervention will be needed to handle broken drivers delivered via Windows Update

Tom's Hardware•

4 weeks ago

AMD to broaden and specialize EPYC CPUs, already working on Zen 7 architecture — increased customization to better address evolving AI and cloud needs

Tom's Hardware•

1 month ago

Google, Microsoft, Meta, and Amazon capex spending to hit $725 billion in 2026, up 77% from last year — analyst says bear thesis is 'garbage'

Tom's Hardware•

2 months ago

Microsoft's gaming division flounders while the firm makes more money than ever — Xbox consoles sales drop 32%

TL;DR

Similar Articles

Amazon unveils 'Resilient Network Graphs' data center network that cuts hardware by 69% and boosts throughput by 33% — now the default for most AWS workloads

Microsoft launches Cloud‑Initiated Driver Recovery for remote rollback of faulty updates — no user action or OEM intervention will be needed to handle broken drivers delivered via Windows Update

AMD to broaden and specialize EPYC CPUs, already working on Zen 7 architecture — increased customization to better address evolving AI and cloud needs

Google, Microsoft, Meta, and Amazon capex spending to hit $725 billion in 2026, up 77% from last year — analyst says bear thesis is 'garbage'

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Microsoft's gaming division flounders while the firm makes more money than ever — Xbox consoles sales drop 32%

TL;DR

Similar Articles

Amazon unveils 'Resilient Network Graphs' data center network that cuts hardware by 69% and boosts throughput by 33% — now the default for most AWS workloads

Microsoft launches Cloud‑Initiated Driver Recovery for remote rollback of faulty updates — no user action or OEM intervention will be needed to handle broken drivers delivered via Windows Update

AMD to broaden and specialize EPYC CPUs, already working on Zen 7 architecture — increased customization to better address evolving AI and cloud needs

Google, Microsoft, Meta, and Amazon capex spending to hit $725 billion in 2026, up 77% from last year — analyst says bear thesis is 'garbage'