Xbox Revenue Drops 9% in Holiday 2025 Quarter, Hardware Revenue Falls 31% - Sales/ 3,462 Viewsby, posted 11 hours agoMicrosoft has released its earnings report for the second quarter of the 2026 fiscal year, which ended up December 31, 2025. This was driven by declines in Xbox hardware and Xbox content & services. Xbox content & services revenue decreased five percent compared to the same quarter a year ago. Xbox hardware revenue dropped 32 percent year-on-year due to a lower number of consoles sold. Xbox hardware is expected to decline.