It’s hard to remember the last time Microsoft shared a fiscal report and had anything positive to share about how the Xbox division is performing. Revenue for both Xbox games and consoles has been consistently declining for years and just yesterday it was reported that Microsoft will keep losing money on every Xbox console it sells even after this weekend’s price hike. Now, Microsoft has shared its results for the final quarter of its 2026 fiscal year and although both Xbox boss Asha Sharma and Microsoft CEO Satya Nadella maintain positive outlooks, things still look grim for Xbox. When comparing the entire 2026 fiscal year to the 2025 fiscal year, Microsoft admits that Xbox revenue decreased by 7%, which is equivalent to $1.7 billion (about £1.27 billion). The other half are set to lose their jobs only sometime before July 2027 and yet are still expected to keep working on new Xbox games.