Xbox and gaming
Revenue fell 10% in the June 2026 quarter, content and services fell 10%, and about 4,800 companywide jobs were cut in July, 3,200 in Xbox.
The numbers
What it is
Xbox consoles, Game Pass subscriptions, first-party studios and content sold through the Xbox store. Activision Blizzard titles sit in this business.
Why it matters to the stock. Game Pass and content are the margin levers, and management said the business was not healthy at current margins. Management expects content and services to decline in the mid-single digits in the September quarter and targets a return to growth in fiscal 2027.
News
Battlefield 6 joins Xbox Game Pass on October 13 for Ultimate and PC
Pure Xbox reported on October 7, 2026 that Battlefield 6 arrives on Xbox Game Pass on October 13 for Ultimate and PC members.
Xbox console prices rise up to $150 on August 1, 2026, 2TB model discontinued
Microsoft raised Xbox console prices effective August 1, 2026, after announcing the change on June 25.
Microsoft cuts about 4,800 jobs and divests Xbox studios
Microsoft said it will eliminate about 4,800 jobs, roughly 2.1% of its global workforce, with the deepest cuts in Xbox.
Asha Sharma named CEO of Microsoft Gaming, succeeding Phil Spencer
Satya Nadella named Asha Sharma executive vice president and CEO of Microsoft Gaming, reporting directly to him.