Microsoft has reorganized its business into two segments: one focused on enterprise, Azure, and AI, and the other on consumer devices. Xbox now belongs to the latter.
The home of Xbox is changing how it is structured. Microsoft is shrinking its wider organization into two main segments: Agents & Infra (AI and cloud) and Devices & Consumer (Windows and Xbox). The company says no adjustments will be made to the metrics themselves, so Microsoft should keep revealing a scant amount of Xbox info every quarter.
Popular Now: PS5 emulator running GTA 5 shows GTA 6 might be possible on PC before official release"With these segment changes and to provide transparency to investors, we are updating our product and services reporting definitions to better represent the businesses as we manage them today, which will be used in our SEC filings going forward."
The FY27 metric definitions show Microsoft's thought process around segment targets and goals while highlighting what that means for each.
For Xbox, Microsoft is targeting "content and services revenue growth," which is reflected in its myriad of recent business decisions. Xbox will soon get paid cloud hour packages for xCloud game streaming as well as a free streaming option with advertisements baked in.
For thoroughness, here's how Microsoft defines this goal for Xbox:
- Xbox content and services revenue growth - Revenue from Xbox content and services, comprising first- and third-party content (including games, and in-game content), Xbox Game Pass and other subscriptions, Xbox cloud gaming, advertising, and other cloud services.
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Microsoft is expected to reveal more details around its ad-supported cloud offering soon, and is moving forward to a digital-oriented future for Project Helix, as illustrated by the new innovative, future-proof disc-to-digital program.
