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Xbox hardware revenue fell by $1.7 billion during fiscal 2026

Xbox hardware revenue saw a significant decrease of 7%, approximately $1.7 billion, in the fiscal year ending June 30, 2026. This decline is attributed to reduced console sales and a 5% drop in Xbox content and services revenue, despite growth in Xbox Game Pass. Microsoft also faces ongoing challenges with component shortages and has implemented mass layoffs across its gaming division.

Article tone: Very negative
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