Xbox Series sales drop 14% and Game Pass stops growing: Microsoft cannot catch a break
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The gaming division generates 5,379 million compared to 5,508 the previous year and strings together 16 quarters of decline. Nadella boasts about Minecraft while the leadership blames a lack of stock. Xbox Series sales fall 14% year-over-year and Game Pass stalls for the first time. Microsoft is no longer hiding it. The results of the first fiscal quarter of 2027 - from July to September of 2026 - leave Microsoft's video game division with 5,379 million dollars in revenue compared to 5,508 the previous year. The console has accumulated 16 consecutive quarters of decline. The last time Xbox posted green numbers was in the summer of 2023. Meanwhile, the rest of the conglomerate grows 19% pushed by Azure. Translated: the cloud pays the bills and gaming has become the cousin nobody wants to mention at Christmas dinner. The official argument is that demand exceeds supply. Nearly six years after the generation's launch, blaming the supply chain has the same mileage as blaming the weather. Asha Sharma, Xbox CEO, said on X that they are working to get more consoles into the hands of players, even through an expanded refurbishment program. Refurbished. In 2026. The plan B - and C, and practically the only one - was services. Content and services drops 2%, and Amy Hood, Microsoft's chief financial officer, said it without anesthesia: the slump comes from drops in third-party content...
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