Microsoft has released its first-quarter fiscal results for the 2025-26 financial year, and Xbox consoles appear to be continuing their sales freefall, although "content and services" revenue is up.
In the company's latest financial release, Microsoft says its Xbox hardware revenue has dropped by 29% when compared to the same period last year, and given that Xbox hardware sales have been in decline for a while now, that's not good news for the gaming division.
There's a silver lining for Microsoft, though, albeit a very small one; content and services revenue, which includes the company's Game Pass service as well as gaming-related software, increased by (an admittedly paltry) 1%, driven by "growth in Xbox Game Pass and third-party content".
It's worth noting that the first quarter of Microsoft's fiscal year covers the period between June and September, so it doesn't take into account the controversial Game Pass changes introduced earlier this month, which saw the price of top tier Ultimate jump to $30 per month.
The data also won't include major Xbox releases for the end of the year, like The Outer Worlds 2 and Call of Duty: Black Ops 7, the latter of which will almost certainly boost...
