Xbox hardware sales continue to tank
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TL;DR
- Xbox hardware revenue decreased by 29% year-over-year in Q1 2026.
- Microsoft has increased prices on its gaming hardware, with the Series X now at $599.99.
- The company is pursuing an 'Xbox everywhere' strategy, de-emphasizing the console.
- Content and services revenue for Xbox saw only a 1% year-over-year growth.
- Azure revenue grew by 40%, and overall Microsoft Cloud revenue increased by 26%.
- Total Microsoft revenue rose 18% to $77.7 billion.
- Windows OEM and Devices saw a 6% increase in revenue.