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Xbox content & services revenue decreased 10% YoY in Microsoft (MSFT) Q2 2026

Microsoft reported a 10% year-over-year decrease in Xbox content and services revenue for Q2 2026. This decline was partially attributed to severance expenses and impairment charges related to recent layoffs and reorganization within the Xbox division under CEO Asha Sharma. Despite the drop in Xbox revenue, Microsoft's overall financial results for the quarter exceeded expectations.

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