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Xbox hardware revenue decreased 14% year-over-year during Microsoft's (MSFT) Q1 FY27

Microsoft's Q1 FY27 earnings report indicates a 14% year-over-year decrease in Xbox hardware revenue and a 2% decline in content and services revenue. The drop in content and services is attributed to lower Xbox Game Pass and third-party content sales, partially offset by first-party titles. The report also notes a price increase for Xbox consoles in August 2026.

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