The last couple of months have been grim for Xbox, and to add to its woes, Microsoft’s gaming division experienced a massive $1.7 billion decline in revenue last quarter. At the same time, Microsoft reported that profits had increased substantially during the same April to June period, reaching $35.8 billion in profit thanks to its AI and cloud initiatives. In its fourth-quarter earnings report, Microsoft said that Xbox revenue decreased by 7%–around $1.7 billion–and it attributed the losses to a decline in…