US Edition
Xbox Has “Work to Do” as Console Sales Drop 33% in Q3
Gaming revenue fell 5% and Xbox content and services dropped 5% as Microsoft said weak first-party releases and console sales hurt results.
- On Wednesday, April 29, 2026, Microsoft announced third-quarter financial results revealing Xbox hardware revenue plummeted 33 percent during the January-March period.
- The gaming giant has struggled with its identity in recent years, compounded by significant executive turnover including the departure of former Xbox president Sarah Bond and the retirement of Xbox chief CEO Phil Spencer.
- Along with hardware decline, Microsoft reported a 5 percent drop in Xbox content and services, while gaming revenue fell 9 percent year-over-year as console sales trailed the PlayStation 5.
- New Xbox boss Asha Sharma, who took charge in February, has lowered Game Pass prices to rebuild the brand, writing that "player and revenue growth has not yet met our ambition."
- Despite upcoming releases like Forza Horizon 6 and Fable, Microsoft will likely rely on PC and PlayStation 5 versions this year to generate revenue as console sales remain weak.
11 Articles
11 Articles
Microsoft reports 23% increase in net income for Q3 FY26 to $31.8bn
Microsoft has reported a net income of $31.8bn for the quarter ending 31 March 2026 (Q3 FY26), reflecting a 23% increase from the same period last year. The diluted earnings per share (EPS) also rose by 23% to $4.27. The company’s revenue for the quarter reached $82.9bn, marking an increase of about 18% compared to revenue of $70bn in Q3 FY25. Operating income for Q3 FY26 was $38.4bn, a 20% increase year-over-year. Microsoft Cloud revenue surged…
NewsGaming.net Xbox reveals its results for the last quarter, which are all down Xbox has changed CEO, all its problems will not be solved in a few months, provided something is settled first. Microsoft has just published the results of its third quarter and it must be admitted that the Xbox division is still struggling, with figures declining year by year. Consoles are declining again So this new balance sheet is not the most happy for Xbox, si…
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