Xbox just had its worst quarter in years

Xbox is not doing well. On the back of seismic layoffs in its gaming brand, Microsoft reported a 10% decline in Xbox "content and services revenue" in its fourth-quarter report for the 2026 fiscal year, making this the worst quarter for Xbox revenue since the first quarter of FY2024.Xbox hardware revenue, specifically, was even weaker, falling 13%. Total Xbox revenue came in at $4.983 billion for the quarter, which is the lowest reported since Q1 2024's $3.919 billion. For comparison, the previo