Microsoft (MSFT) reports Q2 FY26 Xbox content and services revenue fell 5% from Q2 FY25 Microsoft says the previous year benefitted from a strong first-party lineup. While Microsoft’s latest earnings report primarily focused on Windows, cloud, and AI, there were also updates on the gaming division. Xbox content and services revenue fell five percent in Q2 2025. Microsoft confirmed the decrease in revenue for Xbox content and services in its Q2 2026 earnings report. The full quarterly earnings report dives deep into how Microsoft’s business performed over the past few months.