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Xbox Hardware Sales Drop 14% as Supply Limits Demand

By Drooid · Oct 29, 2026 · How we work

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Microsoft reported Xbox hardware sales fell 14% in the quarter ending September 30, 2026.
CEO Sharma said sales are limited by supply, with demand exceeding inventory.
Xbox revenue declined 2% year-over-year to $5.379 billion.
Content revenue dropped 2% and services revenue fell 1%.
Microsoft announced a 20% workforce cut affecting 60,000 staff in the US, UK, Canada and India.

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Microsoft reported Xbox hardware sales fell 14% in the quarter ending September 30, 2026.
CEO Sharma said sales are limited by supply, with demand exceeding inventory.
Xbox revenue declined 2% year-over-year to $5.379 billion.
Content revenue dropped 2% and services revenue fell 1%.
Microsoft announced a 20% workforce cut affecting 60,000 staff in the US, UK, Canada and India.