Xbox Hardware Sales Drop 29% Amidst Revenue Growth from Game Pass
TL;DR Summary
Microsoft's Xbox hardware sales continue to decline significantly, with a 29% drop in Q1 2026, as the company shifts focus to an 'Xbox everywhere' strategy and emphasizes cloud services like Azure, which are driving its overall revenue growth. Despite hardware struggles, Microsoft's cloud division remains a major growth driver, contributing to an 18% increase in total revenue for the quarter.
- Xbox hardware sales continue to tank The Verge
- Xbox Console Sales Sink 29 Percent in Quarter Sandwiched Between Two Price Hikes The Hollywood Reporter
- Xbox FY26 Q1 earnings: Game Pass lifts revenue as console sales plunge nearly 30% Windows Central
- 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+
- Microsoft’s Xbox Console Sales Fall 29% as Gaming Content and Services Revenue Ticks Up Variety
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