Xbox is down in both their Services & Content and Hardware revenue per Microsoft’s freshly released FY26 Q2 statement.
Per Microsoft’s financials for Fiscal Year 2026 Q2, Xbox is down across the board year-over-year:
- Xbox content and services revenue growth is down 5% vs Q2 FY25
- Xbox Hardware revenue declined 32% vs. Q2 FY25
- Gaming revenue saw an overall decline of 9%
It’s the first time in over a year that the division is down year-over-year for Contents and Services. This year’s Call of Duty release, Black Ops 7, has seemingly underperformed in comparison to the behemoth that was 2025’s Black Ops 6.
This is in line with the guidance given for the division 3 months ago by Amy Hood:
Guidance for next quarter: Total decline mid to high single digits (4-9%) against a strong prior year comparable. Content and Services to decline in mid single digits (4-6%)
– Amy Hood during the Q1 FY26 Conference Call in October 2025
Keep an eye on this page as we update once the financial conference call with Satya Nadella and Amy Hood takes place in roughly an hour and a half from this publishing.
Link to Q2 Webcast https://www.microsoft.com/en-us/Investor/earnings/FY-2026-Q2/press-release-webcast
How do you feel about the latest quarter financially for Xbox? Let us know in the XboxEra Forums or make some noise in the lively XboxEra Community Discord Server. If you’re looking to be a bigger part of an amazing community, then either choice is a good one!
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