Xbox hardware sales slump by 32% as Microsoft reports that its overall gaming revenue is in decline

As Andy already reported, Microsoft has just announced bumper revenues of over $80 billion for the most recent quarter. But not every division within the tech titan is coining it. Its Xbox hardware revenue continues to fall and even its overall gaming services revenues are on the slide.

Xbox hardware revenues are reportedly down by 32% in the final quarter of 2025, while overall gaming revenue was down 9%. Microsoft also says in its earnings release that Xbox content and services revenue, including Game Pass, were down by 5%.