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The brand’s “This Is An Xbox” marketing initiative may have also contributed to the lackluster hardware performance. By leaning into the idea that dedicated hardware is optional—telling consumers they were likely “reading this on an Xbox”—the company essentially suggested that owning a console isn’t a necessity.
Earnings from Xbox content and services saw a 5% dip, while total gaming revenue fell by 9%. Microsoft CFO Amy Hood characterized these results as “below expectations,” attributing the slump to a lack of heavyweight first-party releases compared to the stellar performance seen in 2025. Industry analysts speculate that softer sales for Call of Duty: Black Ops 7 compared to its predecessor, Black Ops 6, played a major role in this downturn.
In contrast, Microsoft’s overall corporate revenue climbed 17% year-on-year. The gaming division is now pinning its hopes on a revitalized 2026 release schedule, which features highly anticipated titles like the Fable reboot, Forza Horizon 6, and Halo: Campaign Evolved.
“We are striving for greater consistency in our delivery”: The leadership at Xbox Game Studios discusses recent reveals, the shift toward multiplatform availability, and the strategic pivots following a challenging 2025.
Source: gamesradar.com
