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Xbox Revenue Declines for 4th Straight Quarter, Hardware Revenue Falls 13% – Sales
Microsoft has released its earnings report for the fourth quarter of the 2026 fiscal year, which ended up June 30, 2026.
Total Xbox revenue was $4.98 billion for the quarter, which is down from $5.53 billion in the same same period a year ago. This is the fourth quarter in a row Xbox revenue has declined.
Xbox content & services revenue decreased 10 percent compared to the same quarter a year ago. This is slightly better than the forecast, which expected a decline in the low teens percent (-11% to -13%). Microsoft stated the prior year “benefited from strong first-party content performance.”
Xbox hardware revenue dropped 13 percent year-on-year. This is inline with the forecast, which was for a decline. Microsoft did increase the price of Xbox consoles in most regions on May 1, 2025 and a second time in the US on October 3, 2025. The price is set to increase again on August 1.
For the fiscal year, total Xbox revenue decreased seven percent to $21.79 billion.Xbox content & services revenue decreased five percent year-on-year.
Overall for the quarter, Microsoft reported for the quarter revenue was up 18 percent year-over-year to $90.0 billion, operating income increased 18 percent to $40.6 billion, and net income on a GAAP basis was up 31 percent to $35.8 billion.
For the fiscal year, Microsoft revenue for the full fiscal year increased 18 percent to $331.8 billion, operating increased 21 percent to $155.2 billion and net income on a GAAP basis was up 31 percent to $133.7 billion.
Stay tuned for more information…
A life-long and avid gamer, William D’Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own <a href="http://www.youtube.com/user/TheAlphaTomato” rel=”nofollow noopener” target=”_blank”>YouTube channel and Twitch channel. You can follow the author on Bluesky.
