Microsoft Reports a 9% Overall Drop in Xbox Revenue for Q2/FY26, Hardware Down 32%

Microsoft Reports a 9% Overall Drop in Xbox Revenue for Q2/FY26, Hardware Down 32%

A collage of game characters and scenes with an 'Xbox Game Pass' logo, featuring titles like Valorant, Hogwarts Legacy,

Microsoft has published its latest financial report for the company’s second quarter of its 2026 fiscal year, and while the overall company revenue increased by 17% to a whopping $81.3 billion, that increase was driven by its cloud and AI services. Its games division, however, saw a 9% overall drop compared to last year, bringing in $623 million in revenue. The biggest drop on the Xbox side came from its hardware, which saw a 32% drop in revenue compared to last year. This marks the second straight quarter where hardware revenue specifically has dropped to such a degree, after its [โ€ฆ]

Read full article at https://wccftech.com/microsoft-reports-a-9-overall-drop-in-xbox-revenue-for-q2-fy26-hardware-down-32/

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