Microsoft’s latest quarterly results show Xbox gaming revenue falling again, making it the division’s weakest quarter for several years. The decline matters because it comes despite Microsoft’s wider business continuing to grow strongly, underlining the pressure on Xbox’s console, game sales and subscription strategy.

Gaming revenue fell year on year, with both Xbox hardware and content-and-services income declining; the latter includes game sales, Game Pass and cloud services. The comparison was also difficult because the equivalent period last year benefited from major first-party releases, while Microsoft expects further pressure on Xbox content and services and hardware revenue.