Microsoft has overhauled the leadership of its struggling Xbox division and redeployed staff from its CoreAI organisation. Xbox CEO Asha Sharma said in an internal memo the company must change how it works and its organisational structure to deliver results faster. The revamp follows a slide in game revenue, while rivals have outpaced Xbox in hardware sales. Microsoft is also reorganising subscriptions and cloud, naming David Schloss to lead those businesses.

Microsoft posted fiscal third-quarter results that beat market expectations, but its shares fell 1 percent, CNBC reported. Revenue for the quarter ended March 31 rose 18 percent to $82.89 billion, and net income increased to $31.78 billion. Cloud drove performance, with Azure-inclusive cloud services revenue surging 40 percent. Intelligent Cloud revenue came in at $34.68 billion, above estimates.