Xbox hardware revenue rose 4% with the passing of the one-year anniversary of Microsoft's launch of the Xbox Series X and Series S consoles. In the previous quarter, Xbox hardware revenue surged166%. The gaming component of Microsoft, which now represents almost 11% of total revenue, became more relevant to investors this month, when the company announced plans to acquire Activision Blizzard, the publisher of Call of Duty, for $68.7 billion, the largest deal in Microsoft's 46-year history.