Xbox CEO Asha Sharma responded to the company’s Q4 2026 fiscal report, which showed a continued decline in earnings for both content and hardware.
Microsoft’s Form 10-K SEC filing has been released, showing that Xbox has continued to experience notable revenue loss at the end of their 2026 fiscal year. As told in the filing, Xbox’s revenue decreased by $1.7 billion, or 7%, driven by declines in Xbox content, services, and Xbox hardware.
Revenue for Xbox’s content and services decreased 5%, while hardware revenue decreased 29% due to a lower volume of consoles being sold.
As told by Microsoft CFO Amy Hood during a shareholder meeting on July 29, via PlayDayOne, “Xbox content and services revenue decreased 10% against a prior year comparable that benefited from strong first party performance.”
Hood also noted that Xbox’s operating expenses increased 8% and 7% in constant currency, driven by investments in R&D and “impairment charges” in the company, while operating income decreased 14% and 15% in constant currency. Operating margins decreased year over year to 21%.
“In Xbox content and services we expect revenue to decline in the mid-single digits. Hardware revenue should decline year over year,” she explained.
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