Microsoft’s Xbox hardware revenue has declined for three financial years in a row, and it looks like those declining revenues are going to continue throughout fiscal 2026. Xbox hardware revenue was down 32 percent year-over-year during the recent holiday quarter. Overall gaming revenue was also down 9 percent.
https://www.theverge.com/news/869493/microsoft-q2-2026-earnings-revenue-profits-windows-xbox-gaming-surface