Xbox Console Down Fall 29%

Microsoft reported its newest quarterly earnings outcomes Wednesday, revealing that gaming income decreased $113 million (2%). The tech firm attributed the decline to an almost 30% drop in Xbox {hardware} gross sales “offset in part by growth in Xbox content and services.”

Revenue from Xbox content material and providers, which incorporates Xbox’s Game Pass subscription service and gross sales of its first-party video video games, was $5.5 billion for the July-September quarter, up 1% from the comparable interval in 2024.

Per Microsoft, “Xbox hardware revenue decreased 29% driven by lower volume of consoles sold. Xbox content and services revenue increased 1% on a strong prior year comparable with growth in Xbox Game Pass and third-party content, offset in part by a decline in first-party content.”

In the earlier reporting quarter, which ran April-June, Xbox gross sales have been down 22%. The subsequent time Microsoft studies earnings, these outcomes ought to embrace particulars on gross sales for the not too long ago launched handheld units, ROG Xbox Ally and ROG Xbox Ally X.

For Microsoft’s most up-to-date quarter, which marks its first quarter of its fiscal 12 months 2026, Wall Street forecast earnings per share (EPS) of $3.66 on $75.4 billion in income, in line with analyst consensus knowledge supplied by LSEG. Microsoft reported adjusted EPS of $3.72 on $77.7 billion in income.

“Our planet-scale cloud and AI factory, together with Copilots across high value domains, is driving broad diffusion and real-world impact,” Satya Nadella, Microsoft chairman and CEO, mentioned in a letter to shareholders. “It’s why we continue to increase our investments in AI across both capital and talent to meet the massive opportunity ahead.”

“We delivered a strong start to the fiscal year, exceeding expectations across revenue, operating income, and earnings per share,” mentioned Amy Hood, govt vp and chief monetary officer of Microsoft. “Continued strength in the Microsoft Cloud reflects the growing customer demand for our differentiated platform.”