Microsoft has released its Q2 FY26 earnings report, highlighting a significant decrease in revenue across gaming, hardware and content across the Xbox brand. According to the latest earnings report, Xbox has reported lower revenue for the company. During this period, Microsoft’s gaming revenue decreased by 9 percent. Additionally, Xbox hardware revenue was down 32 percent while content and services revenue was down 5 percent. During the same webcast postmortem, Hood states that the company expected Xbox hardware to drop again in Q3.