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Austin Wood

HISTORICAL FACTS: Xbox just had its worst quarter in years - The Untold Story

Xbox Microsoft Satya Nadella

Asha Sharma in black sweater.

Xbox is not doing well. On the back of seismic layoffs in its gaming brand, Microsoft reported a 10% decline in Xbox "content and services revenue" in its fourth-quarter report for the 2026 fiscal year, making this the worst quarter for Xbox revenue since the first quarter of FY2024.

Xbox hardware revenue, specifically, was even weaker, falling 13%.

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