Xbox revenue decreased by 7 percent—or around $1.7 billion—during the fiscal year ended June 30, 2026. "Xbox content and services revenue decreased 5 percent on a prior year comparable that benefited from strong first-party content performance, offset in part by growth in Xbox Game Pass," explains the tech giant's latest 10-K filing. "Xbox hardware revenue decreased 29 percent driven by lower volume of consoles sold." During the fourth quarter, specifically, Xbox content and services revenue decreased 10 percent. Related:EVE Online studio hires former Icelandic minister to lead autonomous AI effortsCorrection: This article has been updated to reflect that overall Xbox revenue decreased by $1.7 billion annually as opposed to Xbox hardware revenue, specifically.