Xbox revenue declined across all segments in the second quarter of fiscal year 2026.

Xbox Revenue Declined Across All Segments in Q2 FY2026

Microsoft reported a 17% year-over-year revenue increase to $81.3 billion. Once again, the growth in financial performance was driven by cloud technologies and AI. Specifically, Microsoft Cloud revenue reached $51.5 billion, and Azure revenue grew by 39%. Most of the company's core business segments continue to show positive momentum.

However, the situation with Xbox is different. Content and services revenue decreased by 5% compared to the same period last year. Console sales plummeted by 32%.

Recall that last week, Microsoft's gaming division held a major presentation of its games, including Fable and Forza Horizon 6.