PC shipments were up year over year according to recent data, but Microsoft’s hardware brands took such a licking last year that it offset any gains. Xbox hardware revenues have not had a consistently positive number since 2023. In this past quarter ending Dec. 31, 2025, Xbox hardware declined 32%. Microsoft has to survive the AI bubble for Xbox to liveThis month, Xbox touted several new games from its portfolio we should get excited for. We can only expect more firings, more studio closures, and a harder sell for any future Xbox hardware.