Microsoft Report: Xbox Revenue Declines, Console Sales Continue to Worsen
Microsoft reported to investors on its first financial quarter of 2026 (June-September 2025). Notably, the company shared mixed results from its gaming division.
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Below are the key figures from the report.
- Over the three months, Microsoft generated $77.7 billion in revenue, marking an 18% increase compared to the previous year.
- Revenue from the gaming division fell by 2%, dropping to $5.5 billion.
- Microsoft noted that revenue from console sales continued to decline, with a reduction of 29% this time. The exact dollar amount was not specified.
- However, revenue from Xbox gaming content and services increased by 1%, thanks to the Game Pass subscription and games developed by third-party developers. Sales of games from Microsoft's internal studios decreased, but the report did not specify the extent of this decline.
- During a conference call, Microsoft's Chief Financial Officer Amy Hood mentioned that the company expects further declines in Xbox revenue in the next quarter, anticipating a drop in both console and content sales.