Xbox is going through yet another difficult quarter: in recent months, revenue from content and services, such as the Game Pass subscription, fell 10%. At the same time, Xbox hardware sales declined 14%, accordin…Xbox is going through yet another difficult quarter: in recent months, revenue from content and services, such as the Game Pass subscription, fell 10%. At the same time, Xbox hardware sales declined 14%, according to Microsoft’s fourth-quarter earnings report published Wednesday.

The news comes just weeks after Xbox chief Asha Sharma […]Xbox is going through yet another difficult quarter: in recent months, revenue from content and services, such as the Game Pass subscription, fell 10%. At the same time, Xbox hardware sales declined 14%, according to Microsoft’s fourth-quarter earnings report published Wednesday. The news comes just weeks after Xbox chief Asha Sharma announced a “relaunch” plan for Xbox that included large-scale layoffs and the spin-off of four video game studios, including Compulsion Games, developer of South of Midnight, and Double Fine Productions, creator of Psychonauts.

Sharma has also made other major changes to Xbox, including cutting GamePass prices, tes … Read the full article on The Verge. The most significant signals to emerge so far point to competitive pressure and demand. For companies, the issue is not only volume growth: the quality of revenue, the resilience of the customer portfolio and the sustainability of the net margin in the next quarter also matter.

In the short term, commercial execution remains the decisive lever: market-entry timing, channels and market selection could determine the difference between expansion and margin compression. Follow See all articles by Emma Roth Jul 29, 2026, 20:26 UTC Illustration: The Verge Emma Roth Emma Roth This author’s posts will be added to the daily email digest and your homepage feed. Follow See all articles by Emma Roth, a journalist who covers… She was previously a writer and editor at MUO.

Xbox is going through yet another difficult quarter: in recent months, revenue from content and services, such as the Game Pass subscription, fell 10%. At the same time, Xbox hardware sales declined 14%, according to Microsoft’s fourth-quarter earnings report published Wednesday. The news comes just weeks after Xbox chief Asha Sharma announced a “relaunch” plan for Xbox that included large-scale layoffs and the spin-off of four video game studios, including Compulsion Games, developer of South of Midnight, and Double Fine Productions, creator of Psychonauts.

Sharma has also made other major changes to Xbox, including cutting GamePass prices, testing free ad-supported cloud gaming and making Gears of War: E-Day and Clockwork Revolution Xbox exclusives. Xbox also plans to raise the prices of its consoles by $100 or more starting August 1. Related Xbox’s bold plan for the future seems almost impossible Xbox outage s… For companies, the issue is not only volume growth: the quality of revenue, the resilience of the customer portfolio and the sustainability of the net margin in the next quarter also matter.

The most significant signals to emerge so far point to competitive pressure and demand. In the short term, commercial execution remains the decisive lever: market-entry timing, channels and market selection could determine the difference between expansion and margin compression.