In its latest earnings report for Q2 of FY 2026, Microsoft has revealed that its Xbox gaming divisions saw a decline in revenues. The total gaming segment shrank by 9 percent, while content and services—which would include Xbox Game Pass—saw a 5 percent decline. Decline of hardware sales revenues should come as no surprise, since Xbox Series X/S has been struggling quite a bit over the last few months. Compared to November 2024, November 2025 saw Xbox Series X/S console sales fall by 70 percent. Microsoft had raised the prices of its current-gen consoles back in September, with the Xbox Series X now priced at $599.99, and the 1 TB variant of the Xbox Series S costing $429.99.