Content and services sales increased 13%. Hardware revenue, which is made up of sales for Xbox devices, including the Xbox Series X and S consoles, was down 22% total.

Microsoft has shared a new milestone for Xbox Game Pass, which attained "nearly $5 billion" in revenue for the first time over the last year.

Game Pass made Microsoft almost $5bn in annual revenue last year, proving the company is in a healthy state despite last month's shock layoffs.