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#Microsoft #Xbox Q1 FY 2027 results (July to Sep 30 2026) Gaming revenue -2% ❌ Xbox content services revenue -2% ❌ Xbox hardware -14% ❌ Despite the launch of Call of Duty: Black Ops 1 and 2 ports, Halo: Campaign Evolved and Minecraft Dungeons II, revenue is still down across the board year on year. MS says results were "driven by declines in third-party content and Xbox Game Pass, partially offset by growth in first-party content." Company wide "operating expenses declined 3% driven by XBOX, partially offset by continued investments in R&D compute capacity and talent." It's also the 11th quarter (just under 3 years) of double digit hardware decline in a row, and an eye opening 16 out of the last 18 quarters of HW decline. Despite less HW revenue decline as a % this quarter vs prior quarters (partly due to higher hardware prices), it's still one of the lowest Q1's of Xbox hardware sales in the last 12 years of reporting. Total revenue for the quarter is $5.379bn, down $129m on the $5.508bn they had in Q1 FY27. Keep in mind sales and revenue decline is expected towards the tail end of a generation, what's not is larger decline starting so early in the gen like it did for Xbox. Again, the massive acquisitions, Game Pass focus, PC day and date and big multi-platform push have so far all failed to reverse Xbox's fortunes. --- P.S. some have questioned how specific revenue is reported despite Xbox not revealing exact figures in their annual reports. It's calculated based on % changes from when they did announce revenue figures, coupled with further clarification from more recent public figures (ABK recenue, FTC data etc).