Microsoft published results for the first fiscal quarter of 2026, which ended September 30, 2025. This gave us an idea of how things are going for the Xbox gaming division.
Xbox content and services revenue increased 1% year-over-year, primarily driven by Game Pass growth and strong performance in third-party games. Microsoft acknowledged that this growth was partially offset by lower revenue from its own games, which this time around did not have as strong a quarter as before.
But the hardware turned out to be significantly worse. Xbox console sales fell 29% year over year. which also led to a 2% drop in overall gaming revenue. The US company added that this compares with an exceptionally strong period last year.
While the last three months have been quieter for Xbox, 2025 overall has brought some hits from its own studios, such as Bethesda Game Studios’ The Elder Scrolls IV: Oblivion Remastered or id Software’s DOOM: The Dark Ages. Oblivion Remastered even became the fifth best-selling game of the year in the US.
The reporting quarter was saved at least due to smaller projects, such as Grounded 2 from Obsidian Entertainment in Early Access or Gears of War: Reboot from Coalition studio. The end of this year is marked by Microsoft The Outer Worlds 2 from Obsidian (RPG released yesterday) and Call of Duty: Black Ops 7 from Activision, which will host the very strong Battlefield 6 from EA. Rising Game Pass prices will also help in the next quarter.
The More Personal Computing segment, which includes Windows and Surface devices in addition to Xbox, grew 4% to reach $13.8 billion in revenue. For the quarter as a whole, Microsoft generated $77.7 billion in revenue and $27.7 billion in net profit.which represents year-on-year growth of 18% and 12%. Microsoft’s results are achieved through the cloud and its artificial intelligence factory in collaboration with Copilot. Despite this, shares fell slightly following the results, depreciating 3.50% after straightening out. More detailed information about Microsoft’s financial results can be found in the white paper.
Source :Indian TV
