The decline in Xbox hardware revenue has become so predictable you could set your Starfield watch to it. “Xbox content and services revenue declined 5 percent (down 6 percent CC) on a prior year comparable that benefited from strong first-party content performance,” reads the company’s latest earnings presentation. “Xbox hardware revenue declined 32 percent.”But last year’s numbers weren’t exactly stellar. Xbox hardware was down 29 percent this time in 2025, while content and services were only up 2 percent. With the AI arms race led by Microsoft and others spiking gaming hardware costs in the near term, maybe that’s for the best.