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Xbox revenue fell 2% YoY, hurt by a 29% drop in hardware sales, though services grew slightly.
Microsoft's Xbox division saw a 2% year-over-year revenue decline to $5.51 billion in Q1 FY2026, driven by a 29% drop in hardware sales, primarily due to lower console demand and price increases.
Revenue from content and services rose 1% to $5.5 billion, supported by growth in Game Pass subscriptions and third-party game sales, though first-party titles underperformed.
The company continues shifting focus to software and services amid ongoing hardware struggles, with forecasts for continued declines in console sales and low-single-digit growth in services.
Microsoft's broader cloud and business services remain strong, fueling overall revenue and profit growth.
Los ingresos de Xbox cayeron un 2% interanual, golpeados por una caída del 29% en las ventas de hardware, aunque los servicios crecieron ligeramente.