US EditionXbox Has “Work to Do” as Console Sales Drop 33% in Q3
Gaming revenue fell 5% and Xbox content and services dropped 5% as Microsoft said weak first-party releases and console sales hurt results.
- On Wednesday, April 29, 2026, Microsoft announced third-quarter financial results revealing Xbox hardware revenue plummeted 33 percent during the January-March period.
- The gaming giant has struggled with its identity in recent years, compounded by significant executive turnover including the departure of former Xbox president Sarah Bond and the retirement of Xbox chief CEO Phil Spencer.
- Along with hardware decline, Microsoft reported a 5 percent drop in Xbox content and services, while gaming revenue fell 9 percent year-over-year as console sales trailed the PlayStation 5.
- New Xbox boss Asha Sharma, who took charge in February, has lowered Game Pass prices to rebuild the brand, writing that "player and revenue growth has not yet met our ambition."
- Despite upcoming releases like Forza Horizon 6 and Fable, Microsoft will likely rely on PC and PlayStation 5 versions this year to generate revenue as console sales remain weak.
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News from HD Technology. Visit www.hd-tecnologia.com for the latest news. Xbox’s present continues to generate doubts and the latest numbers don’t help to change that perception. In recent years, the company’s strategy has been under pressure, with decisions impacting both hardware and software. Now, the new financial report reboots the alarms. According to Microsoft’s latest report, Xbox’s hardware revenue fell by 33%, marking the strongest hit…
It gets worse before it gets better: Microsoft is again reporting declining figures for the Xbox and Games department. "Although we have made progress in expanding our business and our margins – however, growth in player numbers and sales are not yet in line with our ambitions. We know that we need to work out each player – [...] Microsoft's Xbox hardware sales break down by a third a first appeared on GamesWirtschaft.de.
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