Xbox revenue fell by $1.7 billion during fiscal 2026

Game Developer · 3 min read · business

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Xbox revenue fell $1.7 billion (7%) in fiscal 2026, driven by a 29% hardware decline and 5% drop in content and services. Q4 specifically saw content and services revenue decline 10%. The downturn comes as Microsoft executes 3,200 layoffs across its gaming division and divests from studios including Double Fine and Compulsion Games.