Microsoft Q2 gaming revenue fell 9% YoY, including a 32% drop in Xbox hardware revenue and a 5% decline in Xbox content and services, which includes Game Pass
and Microsoft's own first‑party lineup is the culprit, raising tough questions for 2026, but PC and cloud is upJesse ‘Doncabesa’ Norris /XboxEra:Xbox down YoY in both hardware and Content & Services for Q2 FY26Shaheer Zahid /Tech4Gamers:Xbox Sees 32% Decline in Hardware Revenue as Overall Gaming Revenue Falls By 9%Emily Jarvie /Proactive:Microsoft shares fall on elevated cloud expectations despite fiscal Q2 beatAssociated Press:Microsoft beats Wall Street expectations with $81.3B revenue