Microsoft reports Xbox hardware revenue has fallen by 29% in the last quarter amid widespread speculation about its future console strategy.

Lock in three months of Game Pass Ultimate before prices jump to $30 monthly.

Microsoft reported its latest quarterly earnings results Wednesday, revealing that gaming revenue decreased $113 million

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It hasn't been a good year for Xbox so far. Microsoft has released its earnings report for the quarter ending on September 30, and it has revealed that its revenue from the Xbox hardware fell by 30 percent year-over-year.

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Xbox gamers trying to log in to play multiplayer or purchase anything from the Microsoft Xbox Store ‘ll have a hard time doing so, as the service is down and suffering issues on October 29. This started an hour ago and has persisted with multiple reports flooding in from gamers.

The Xbox handhelds have arrived, perhaps just in time to save sinking console sales.

However, this was offset in part by a 1% growth in Xbox content and services, including gains in Xbox Game Pass and the "better-than-expected performance" of third-party content. Looking at hardware specifically, Microsoft reported a decrease of 29% driven by a low volume of sales across its product range.