Microsoft’s latest quarterly results showed Xbox as the weakest part of an otherwise strong period for the company, with gaming revenue falling while cloud and business divisions continued to grow. The result matters because it underlines continued pressure on Xbox’s console business and subscription-led services, despite Microsoft’s substantial investment in gaming.

Microsoft reported overall quarterly revenue of $81.3 billion, up 17% year on year, but gaming revenue declined by 9%. Content and services revenue, including Game Pass, fell by 5%, while weaker console sales were a major factor; Microsoft attributed part of the decline to comparison with a previous period that had stronger first-party game releases and expected another single-digit fall in the following quarter.