Xbox Gaming Revenue Declines As Console Sales Continue To Slump

Xbox Hardware Revenue Craters 32%

Microsoft's Xbox hardware revenue fell 32% in the final quarter of 2025 and overall gaming revenue declined 9% year-over-year, according to the company's latest quarterly earnings, released as part of results showing Microsoft's total revenue exceeded $80 billion. Xbox content and services revenue, which includes Game Pass, dropped 5%. Read more of this story at Slashdot.

Microsoft Reports a 9% Overall Drop in Xbox Revenue for Q2/FY26, Hardware Down 32%

Microsoft has published its latest financial report for the company's second quarter of its 2026 fiscal year, and while the overall company revenue increased by 17% to a whopping $81.3 billion, that increase was driven by its cloud and AI services. Its games division, however, saw a 9% overall drop compared to last year, bringing in $623 million in revenue. The biggest drop on the Xbox side came from its hardware, which saw a 32% drop in revenue…

Xbox revenue continues to decline — and more from Microsoft’s quarterly report

The Microsoft Corporation released a report outlining the financial results for the last three months of 2025, marking the second quarter of its fiscal year 2026.

Xbox Gaming Revenue Declines As Console Sales Continue To Slump

Microsoft has posted its earnings results for the latest quarter and while it's been a strong period for the company as a whole, the Xbox gaming division is struggling. Though Microsoft posted an overall revenue increase of 17% year-on-year, gaming revenue is down 9%--with console sales making up a large part of that decline.Microsoft's Q2 FY26 results generally look great for the tech behemoth, with the company boasting a staggering $81.3 billi…