Xbox Hardware Sales Drop 29% Amid Price Hikes and Content Challenges
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.
