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Microsoft reports a 29 percent year-over-year decrease in Xbox hardware sales and a 70 percent drop in console sales, while the broader industry faces a 27 percent decline in hardware spending. Microsoft shifts its strategy from console competition to expanding cloud gaming and cross-platform access, growing Xbox Game Pass to 34 million subscribers and nearly $5 billion in annual revenue. The company acquires multiple game studios, moves away from exclusive titles, implements layoffs and price increases, and tests an ad-supported Game Pass tier to reach new users as it focuses on global gaming accessibility.
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