Microsoft's gaming revenue down 21% in Q2, but subscriptions are still up

Microsoft has reported its earnings for Q2 of the current fiscal year, announcing overall growth overshadowing continued declines in the company's gaming segment. Total revenue reached $36.9 billion for the quarter, up 14% year-over-year, with a net income of $11.6 billion, up 35%. The "More Personal Computing" business segment, of which gaming is a part, saw $13.2 billion in revenue -- up 2% year-over-year. But gaming is but a small part of that segment, bringing in $3.3 million in Q2, down $905 million (21%) year-over-year. Microsoft attributes this decline to a decrease in hardware sold -- a predictable drop, given that this represents the final holiday season of the current console generation. This drop is also in line with what CFO Amy Hood suggested during the company's Q1 earnings call.