Xbox Hardware Sales Drop 29% Amid Price Hikes and Content Challenges
TL;DR Summary
Microsoft's Q1 FY26 financial results show a 2% decline in overall gaming revenue and a nearly 30% drop in Xbox hardware sales, driven by low sales volume, but offset by a 1% increase in Xbox content and services, including strong third-party performance. Despite hardware sales decline, Microsoft reports overall revenue growth driven by cloud and AI services, and anticipates future growth with new hardware in development and subscription growth potential.
- Xbox Q1 hardware sales down 29% while third-party content experiences "better-than-expected performance" GamesIndustry.biz
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- Xbox hardware sales continue to tank The Verge
- Microsoft reports Xbox hardware revenue down 29%, and 1% growth in content and services like Game Pass blunted by "a decline in first-party content" GamesRadar+
- Xbox Console Sales Sink 29 Percent in Quarter Sandwiched Between Two Price Hikes The Hollywood Reporter
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