MSFT · 10-K · 2026A · Full report

Gaming Demand and Mix Shift

MICROSOFT CORP · 2026-07-29 · Importance 25 · Surprise 32

Xbox revenue decreased 7% in fiscal 2026, reflecting declines in both content and services and hardware. Xbox content and services revenue declined 5% against a prior-year comparison that benefited from strong first-party content, partially offset by Xbox Game Pass growth. Xbox hardware revenue fell 29% because of lower console volumes, while Windows OEM and Devices revenue was slightly lower as device declines offset 5% Windows OEM growth and inventory levels remained elevated.

Key facts

• XBOX revenue overall decreased $1.7 billion or 7% in fiscal year 2026 driven by declines in XBOX content and services and XBOX hardware. source
• XBOX content and services revenue decreased 5% in fiscal year 2026. source
• XBOX hardware revenue decreased 29% in fiscal year 2026 driven by lower volume of consoles sold. source