Microsoft has published its latest financial results, with Xbox revenue down 7% for the full year and 10% in the fourth quarter. Growth in Game Pass partially offset annual declines, but hardware revenue dropped 29% due to reduced console sales. …
… Games priced above $50 comprised nearly 80% of premium revenue. Microtransaction revenue declined slightly, which Newzoo says reflects "pressure across some live-service ecosystems." Subscription revenues grew modestly, driven mainly by price increases and tier upgrades. …
… Microsoft expects Xbox content and services revenue to decline by a low single-digit percentage, while hardware revenue is projected to decrease further. …
Asha Sharma has outlined key priorities to help Xbox recover after it reported a $1.7 billion decline in revenue last year . …
… It comes after a 33% year-on-year decline in hardware revenue during Q3, which Sharma described as "not particularly healthy." To address this, Xbox is reintroducing exclusive titles to the platform, including the recently announced Gears of War: E-Day and Clockwork Revolution as platform exclusive…
… In addition to these organizational changes, the restructuring is driven by recent financial declines and the need to streamline Xbox's management structure. …
… This quarter’s 10% decline for Xbox drove a 4% drop for its enclosing division, More Personal Computing – which includes Windows, Surface, and Bing, along with Xbox – but the company’s overall numbers were still up strongly, with an 18% growth in revenue and a 31% growth in net income. …
… Xbox reported a 33% decrease in hardware revenue in Q3, along with a 5% decline in content and services revenue. Despite lower content and hardware revenue, Xbox achieved record levels of monthly active users and streaming hours. …
… "We must think about the cost construction of consoles and how we create different plans, partnerships that will allow us to have better distribution, and experiences that we're creating outside of that to reach new audiences." "We will continue to look at new business models – that's what is neede… …
… Microsoft also reported a $1.7 billion decline in Xbox revenue in 2026 , with hardware sales dropping 29% year-on-year due to lower console sales. …