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Microsoft has released its earnings report for the second quarter of the 2026 fiscal year, which ended up December 31, 2025. Xbox gaming revenue decreased by $623 million or nine percent year-on-year. This was driven by declines in Xbox hardware and Xbox content & services. Xbox content & services revenue decreased five percent compared to the same quarter a year ago. This is inline with the forecast, which expected a decline in the low to mid single digits percent (-1% to -6%). Microsoft stated the prior year "benefited from strong first-party content performance." Xbox hardware revenue dropped 32 percent year-on-year due to a lower number of consoles sold. This is inline with the forecast, which was for a decline. Microsoft did increase the price of Xbox consoles in most regions on May 1, 2025 and a second time in the US on October 3, 2025. Xbox Revenue Jumped 49% During Holiday Quarter, Driven By Activision Blizzard Acquisition Overall for the quarter, Microsoft reported for the quarter revenue was up 17 percent year-over-year to $81.3 billion, operating income increased 21 percent to $38.3 billion, and net income on a GAAP basis was up 60 percent to $38.5 billion. "We are committed to delivering great games across Xbox, PC, cloud, and every other device," said Microsoft CEO Satya Nadella. "And we saw record PC players and paid streaming hours on Xbox." Microsoft's forecast for the quarter ending March 31, 2026 expects Xbox content & services to decline in the mid single digits percent (-4% to -6%) against a prior year that benefitted from strong content performance partially offset by growth in Xbox Game Pass. Xbox hardware is expected to decline. https://www.vgchartz.com/article/4668... Thanks for watching! Leave a LIKE or SHARE the video if you enjoyed it! Click Here to Subscribe - http://bit.ly/1STlFlK Follow on Socials: Twitch - / trunkswd Bluesky - https://bsky.app/profile/trunkswd.bsk... Threads - https://www.threads.net/@trunkswd Instagram - / trunkswd Support the Channel: Tip - https://streamlabs.com/trunkswd/ Hello, I am TrunksWD, but you can call me William. This YouTube channel is mainly a gaming let's play channel where I play games solo and with friends. However, there are some different style of videos such as vlogs. Be sure to leave any suggestions about different games I can play or advice in the comments section down below. #xbox #gaming #microsoft