Microsoft publishes its results and Xbox suffers a sharp decline in hardware again

Xbox sales continue to decline and Microsoft is already preparing significant changes.

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Microsoft has already published the results for the third fiscal quarter of 2026, and the data once again reflects a complicated situation for several areas related to Xbox and the company’s gaming business.

Although Microsoft continues to grow in other important sectors of the company, the video game division again registers declines in both hardware and revenue related to content and services.

Xbox Continues to Decline in Hardware and Gaming During the Fiscal Quarter

These are the main data shared by Microsoft in its financial report:

• Windows and device OEM revenue: ↓ 2%
• Gaming revenue: ↓ 7%
• Xbox content and services revenue: ↓ 5%
• Xbox hardware revenue: ↓ 33%

The biggest decline occurs again in the hardware sector, where Xbox records another significant drop in console and device sales. This is also a trend that Microsoft has been experiencing for a long time compared to previous generations.

On the other hand, the Xbox content and services area (which includes elements such as Xbox Game Pass, digital sales, and online services) also falls by 5%, which is particularly notable given Microsoft’s recent strong bet on expanding the Xbox ecosystem beyond the traditional console.

All this comes at a time when the company is driving a new phase under the direction of Asha Sharma, focused on strengthening the Xbox identity, boosting Game Pass, and preparing the future hardware under projects like Xbox Helix.

However, despite the current declines, Microsoft continues to insist that its main objective is to return Xbox to growth over the next few years, especially by relying on services, content, and future platforms within the Xbox ecosystem.