Microsoft has posted its earnings results for the latest quarter and while it’s been a strong period for the company as a whole, the Xbox gaming division is struggling. Though Microsoft posted an overall revenue increase of 17% year-on-year, gaming revenue is down 9%–with console sales making up a large part of that decline.
Microsoft’s Q2 FY26 results generally look great for the tech behemoth, with the company boasting a staggering $81.3 billion revenue largely driven by its cloud and business divisions, but Xbox isn’t looking so healthy right now.
Microsoft’s gaming division revenue declined 9% as a whole, with a 5% decrease in revenue from content and services, which includes Game Pass. Microsoft explains that this decline can be mostly attributed to strong first party content the year prior, and predicts that Q3 will see a similar decline in the single digits for the same reason.
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