Microsoft has reported a 5% decline in Xbox content and services revenue for the period encompassing October-December 2025.
This is the first quarterly decline for Xbox content in three years.
Xbox hardware revenue has also declined 32%, continuing what has become a recurring quarterly trend.
Xbox Content, Services, and Hardware Revenue Declined During End of 2025
The decline in gaming revenue contributed to a broader 3% decline in Microsoft’s Personal Computing segment, and an increase in operating expenses.
