A less than successful financial quarter for Microsoft's gaming division.
Microsoft has published its financial report for the second quarter of fiscal year 2026, and it turned out to be not the most successful one for the Xbox gaming division. According to the company's official data, the gaming sector showed a decline in performance across several key areas in year-over-year terms.
Xbox revenue from content and services decreased by 5% compared to the second quarter of the previous fiscal year. This is the first such decline in more than a year, which is particularly notable against the backdrop of steady growth in subscription and digital services in previous reporting periods. Hardware revenue slumped even further — revenue from Xbox console sales fell by 32% year-over-year.
Overall, Microsoft's gaming division recorded a 9% drop in revenue.
