How Can Xbox Justify Another Hardware Generation After Sharp Declines?

How Can Xbox Justify Another Hardware Generation After Sharp Declines?

New Xbox revenue figures are in and they are very bad, especially in the hardware department. Can Microsoft afford to invest it ieven more?

Xbox Hardware Revenue Craters 32%

Microsoft's Xbox hardware revenue fell 32% in the final quarter of 2025 and overall gaming revenue declined 9% year-over-year, according to the company's latest quarterly earnings, released as part of results showing Microsoft's total revenue exceeded $80 billion. Xbox content and services revenue, which includes Game Pass, dropped 5%. Read more of this story at Slashdot.

Xbox hardware revenue down 32% in latest earnings report, weak first-party games and price hikes to blame

Last Updated on January 29, 2026 Microsoft has shared its latest financial results, and the numbers aren’t great for Xbox hardware. Revenue from Xbox consoles and accessories dropped by 32% compared to the same period last year. Xbox’s overall gaming revenue also fell by 9%. These results cover Microsoft’s second quarter, which ended on December ...

Microsoft Reports a 9% Overall Drop in Xbox Revenue for Q2/FY26, Hardware Down 32%

Microsoft has published its latest financial report for the company's second quarter of its 2026 fiscal year, and while the overall company revenue increased by 17% to a whopping $81.3 billion, that increase was driven by its cloud and AI services. Its games division, however, saw a 9% overall drop compared to last year, bringing in $623 million in revenue. The biggest drop on the Xbox side came from its hardware, which saw a 32% drop in revenue…