Xbox Statistics 2026: Revenue, Hardware and Game Pass

Xbox revenue fell to $21,790 million in Microsoft’s fiscal year 2026, down from $23,455 million in fiscal 2025. The decline came to $1.7 billion, or 7%. Both halves of the business gave ground: hardware revenue dropped 29% on lower volume of consoles sold, and content and services revenue fell 5%. Microsoft’s own filing attributes part of the content softness to a prior-year comparable that benefited from strong first-party content performance, offset in part by growth in Xbox Game Pass.

Three of the most-searched Xbox numbers no longer appear in any Microsoft disclosure: console units shipped, Game Pass subscriber count, and platform market share. Every figure below comes from what the company still publishes. That means two Form 10-K filings, the fiscal 2026 fourth-quarter results, the quarterly key-metrics table, and Xbox product announcements through September 2026.

Key Takeaways

• Xbox now accounts for roughly 6.6% of Microsoft’s total revenue, a smaller slice than it held two fiscal years earlier.
• Hardware fell far faster than software in fiscal 2026, a decline roughly 5.8 times steeper than the content and services drop.
• Xbox content and services swung from 13% growth in the June 2025 quarter to a 10% decline in the June 2026 quarter.
• Xbox makes up about 40.3% of the More Personal Computing segment’s fiscal 2026 revenue.
• More Personal Computing revenue fell $597 million, or 1%, while Microsoft’s other two segments grew.
• Microsoft expects the November 2026 cloud gaming caps to reach 4% of Game Pass subscribers.

Editor’s Choice

• Xbox revenue, fiscal 2026: $21,790 million.
• Year-over-year change: down $1.7 billion, or 7%.
• Hardware revenue change: down 29%.
• Content and services, June 2026 quarter: down 10%.
• More Personal Computing revenue, fiscal 2026: $54,052 million.
• Game Pass entry price: plans start at $9.99/month.

Xbox Revenue by Fiscal Year

• Microsoft reported Xbox revenue of $21,790 million for the year ended June 30, 2026, the line item Microsoft now reports under its own name rather than as Gaming.
• The five-year span covers a structural break: revenue sits $5,560 million above the fiscal 2022 figure, a gap that follows the Activision Blizzard acquisition rather than console growth, though Microsoft does not break out the acquisition’s contribution.
• Fiscal 2023 was the weakest year in the series at $15,466 million, before the acquisition landed in the reported numbers.
• The fiscal 2025 high point of $23,455 million held for exactly one year.
• Measured against Microsoft’s total fiscal 2026 revenue of $331,839 million, Xbox is a rounding-scale line inside a company whose growth now comes from cloud.

Source: Microsoft Form 10-K, fiscal years 2024 and 2026

About This Data

Figures here come from 12 Tier 1 primary excerpts published between July 2024 and September 2026. All 12 are Microsoft filings or official Xbox channels. A source is qualified only if Microsoft itself published the number. Figures are reviewed on a rolling basis and updated when Microsoft publishes new editions.

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Xbox Content and Services Growth by Quarter

• Growth turned negative in the December 2025 quarter and has stayed negative since, a run of three consecutive declining quarters through Q4 FY2026.
• The full fiscal year landed at -5% on a reported basis and -6% in constant currency, against 16% growth in fiscal 2025.
• Currency did almost no work in the final quarter: reported and constant-currency growth were both -10%, so the drop is demand, not exchange rates.
• Windows OEM and Devices fell in the same quarter at -7%, which means the weakness was not Xbox-specific within the segment.

Source: Microsoft investor key metrics, July 2026

By the numbers: Microsoft’s own metrics table tracks Xbox content and services from 13% growth in the June 2025 quarter to a 10% decline a year later, with constant-currency growth matching the reported figure exactly in the final quarter. A 23-point swing in four quarters leaves little room to blame the exchange rate.

Recent Developments

• July 2026: Microsoft reported quarterly revenue of $90.0 billion, up 18%, and named severance expense and impairment charges in Xbox among the discrete items affecting the quarter.
• July 2026: The fiscal 2026 Form 10-K recorded Xbox hardware revenue down 29% on lower volume of consoles sold.
• July 2026: Microsoft guided to a further mid-single-digit decline in Xbox content and services revenue, with hardware revenue also expected to fall year over year.
• September 2026: Xbox announced that Game Pass plans will include a set number of cloud gaming hours each month beginning in November.
• September 2026: Xbox said players will be able to buy cloud playtime hours through the Xbox Store and stream eligible games they own, without a Game Pass subscription.

Xbox Hardware Revenue and Console Volume

• Hardware is the fastest-shrinking part of Xbox, with fiscal 2026 hardware revenue down 29% driven by lower volume of consoles sold.
• Microsoft states the cause without stating the quantity: the filing names console volume as the driver but publishes no unit figure, which is why every console-count claim on the open web is an estimate rather than a disclosure. Readers tracking the head-to-head will find more platform context in our PS5 and Xbox Series X comparison.
• Cheaper hardware flows through the cost line as well as the revenue line: segment cost of revenue fell $1.8 billion, or 7%, driven by lower hardware sales.
• Sony’s side of the same console cycle is tracked separately in our PlayStation platform data, where the disclosure practice differs.

Where Xbox Sits Inside More Personal Computing

• Xbox is the single largest revenue line inside its segment, ahead of Windows, at about 40.3% of More Personal Computing revenue in fiscal 2026.
• That share is falling rather than rising: the equivalent fiscal 2025 figure was roughly 42.9%.
• The segment shrank around it, with More Personal Computing revenue at $54,052 million in fiscal 2026 against $54,649 million in fiscal 2025.
• Windows did not rescue the segment either, with Windows and Devices revenue down $230 million, or 1%.
• Search advertising was the only growing line in the segment, up $1.3 billion, or 9%.

Why it matters: Microsoft’s segment math puts Xbox and Windows in the same budget pool as Bing advertising. Search advertising revenue rose 9% in fiscal 2026 while Xbox revenue fell 7%. The internal case for gaming investment now rests on a line that is both shrinking and thinner than the one beside it.

Microsoft Segment Revenue in Fiscal 2026

• Xbox sits in Microsoft’s smallest reporting segment, which brought in $54,052 million of the company’s $331,839 million fiscal 2026 total.
• Productivity and Business Processes grew to $139,996 million from $120,810 million.
• Intelligent Cloud grew fastest in absolute terms, reaching $137,791 million from $106,265 million.
• The scale gap is the story for gaming: Intelligent Cloud revenue is roughly 2.5 times the whole More Personal Computing segment, and subscription lines such as Microsoft 365 usage data sit on the growing side of that split.

Segment Revenue and Operating Income

• More Personal Computing was the only segment to lose revenue in fiscal 2026 and still gained operating income, up $220 million, or 2%.
• Quarterly profitability moved the other way, with segment operating income of $2,748 million in the June 2026 quarter against $3,190 million a year earlier.
• The cost side explains the annual gain: segment cost of revenue fell to $23,481 million from $25,238 million.
• Operating expenses moved against that, rising to $16,185 million from $15,245 million.

Source: Microsoft segment results, fiscal year 2026

How Xbox Ranks Among Microsoft’s Product Lines

• Xbox ranks behind server products and the commercial productivity line in Microsoft’s fiscal 2026 revenue disclosure.
• Server products and cloud services dwarf everything else at $129,425 million.
• Xbox at $21,790 million sits close to LinkedIn, which reported $19,817 million.
• Windows and Devices, the other consumer-facing line in the same segment, came in at $17,084 million.

Xbox as a Share of Microsoft Revenue

• Xbox represented about 8.8% of Microsoft’s fiscal 2024 revenue.
• The share slipped to roughly 8.3% in fiscal 2025 even though Xbox revenue itself grew that year.
• By fiscal 2026, it had fallen to approximately 6.6%, because company revenue grew while gaming shrank.
• Microsoft’s total revenue climbed from $245,122 million in fiscal 2024 to $331,839 million in fiscal 2026, which is the denominator doing most of the work in that decline.

Xbox Game Pass Plans and Cloud Allowances

• Game Pass pricing now starts low and scales by tier, with plans starting at $9.99 per month on the United States storefront.
• The subscription is the one Xbox line Microsoft singled out as growing, noting that the content and services decline was offset in part by growth in Xbox Game Pass.
• Cloud access stops being unlimited in November, when Game Pass plans will include a set number of cloud gaming hours each month: 15 hours for Ultimate, 10 hours for Premium and 5 hours for Essential.

What Xbox Game Pass Ultimate Includes

• Microsoft’s own store listing is the only current inventory of the top tier, and it leads on day-one releases rather than catalog size.
• The library claim on the Ultimate page is 500+ games, while the plan chooser on the same page cites a catalog of 300+ games.
• Partner subscriptions are bundled rather than sold separately, with EA Play, Fortnite Crew and Ubisoft+ Classics included.
• Ubisoft’s bundled tier alone lists 50+ games from its back catalog, which is how the headline library number grows without new first-party output.

Source: Xbox Store product listing, September 2026

Worth noting: Microsoft expects the November cloud caps to affect 4% of Game Pass subscribers, a share it published without publishing the subscriber base it applies to. The share is verifiable; the population behind it is not, and streaming-heavy players sit disproportionately inside that group.

What Microsoft Counts as Xbox Revenue

• The reporting line changed name in fiscal 2026, with Microsoft describing it as XBOX, formerly Gaming, including Xbox hardware and Xbox content and services.
• The content half is broader than console software, covering first- and third-party content including games and in-game content, Xbox Game Pass and other subscriptions, Xbox Cloud Gaming, advertising, and other cloud services.
• Microsoft attributes the line’s performance to subscriptions and sales of first- and third-party content, as well as advertising, which places console hardware outside the stated revenue drivers.
• The renamed line carried $21,790 million of revenue in fiscal 2026, all of it reported under that single heading.
• Platform reach matters more than console reach under that definition, a shift also visible in our cross-platform play data.

What Microsoft No Longer Discloses About Xbox

• Console unit sales appear nowhere in the fiscal 2026 filing, even though Microsoft names lower volume of consoles sold as the driver of the 29% hardware decline.
• Game Pass subscriber totals are absent from the Form 10-K, the quarterly release, the investor metrics table, and the earnings call.
• Platform market share is not a Microsoft-reported metric at all, so any share figure comes from third-party modeling rather than disclosure. Our console market share tracking keeps those estimates labeled as estimates.
• The one active-user signal Microsoft still gives is qualitative: growth of the Xbox business is determined by the overall active user base through Xbox-enabled content, availability of games, and providing exclusive game content that gamers seek.

Source: Microsoft Form 10-K and investor disclosures, fiscal year 2026

What is Xbox’s market share?

Microsoft publishes no console market-share figure in its fiscal 2026 filings, its quarterly results, or its investor metrics table. Every share percentage circulating for Xbox is third-party modeling built on retail panels or shipment estimates. The closest disclosed proxy is hardware revenue, which fell 29% driven by lower volume of consoles sold.

Microsoft’s Fiscal 2027 Xbox Outlook

• Microsoft’s guidance points down before it points up, with Xbox content and services revenue expected to decline in the mid-single digits and hardware revenue expected to decline year over year.
• The reset language is explicit. Satya Nadella told investors Microsoft is making the necessary decisions required across our content portfolio, platform, and operations to reset the business for long-term growth.
• Management set a dated recovery expectation, saying the company believes it can bring these strengths together and expects to return the business to growth in fiscal 2027.
• Cost pressure was visible in the final quarter, where segment operating expenses rose 8%, driven by continued investments in shared research and development as well as impairment charges in Xbox.
• Across our platform statistics coverage, the pattern that predicts a turnaround is engagement depth rather than headline growth. Xbox is the rare case where neither is published, so fiscal 2027 will be judged on a revenue line alone.

Is Xbox Financially Struggling?

Xbox is shrinking inside a growing company rather than losing money. Xbox revenue fell 7% in fiscal 2026 while the More Personal Computing segment it belongs to still produced $14,386 million of operating income, up $220 million or 2%. The pressure shows in mix rather than in losses.

Microsoft’s own framing treats the year as a deliberate reset. The company named severance expense and impairment charges in Xbox among the discrete items that affected the June 2026 quarter, and guidance calls for Xbox content and services revenue to decline in the mid-single digits, with hardware revenue also declining.

Is Xbox Declining in Sales?

Xbox hardware sales are declining, and Microsoft says so directly: hardware revenue fell 29%, driven by lower volume of consoles sold. Content and services, the larger half of the line, fell 5% across fiscal 2026 and 10% in the quarter ended June 30, 2026.

The decline is not uniform. Game Pass grew enough for Microsoft to name it as a partial offset to the content softness, which suggests subscription revenue is holding up better than one-time game and console purchases. Industry-level context sits in our video games industry data.

How Many Xbox Users Are There?

Microsoft does not publish an Xbox user count. Neither the fiscal 2026 annual filing, the fourth-quarter results, the investor metrics table, nor the July earnings call contains a monthly-active-user figure, a subscriber total, or an installed-base number for the platform.

What the filing does say is that growth of the Xbox business is determined by the overall active user base through Xbox-enabled content, availability of games, and providing exclusive game content that gamers seek, without quantifying any of them. Any specific user figure attributed to Xbox therefore traces to third-party estimation rather than to Microsoft, and should be read that way.

Conclusion

Xbox closed fiscal 2026 at $21,790 million in revenue, $1.7 billion below the prior year, with hardware down 29% and content and services down 5%. The quarterly series is harsher than the annual one: content and services went from 13% growth in the June 2025 quarter to a 10% decline twelve months later, and Xbox now accounts for roughly 6.6% of Microsoft revenue against about 8.8% two years earlier.

For players, the near-term changes are concrete: cloud gaming moves to monthly hour allowances in November, and Microsoft has guided to further declines before the growth it expects in fiscal 2027. For anyone tracking the platform, the more useful discipline is knowing which Xbox numbers are disclosed and which are modeled, because that gap is now the widest one in the data.