Xbox commits to core fans as hardware revenue plunges 33% YoY
TL;DR Summary
Microsoft’s Q3 FY2026 results show gaming down 7% and Xbox hardware revenue down 33% year over year, despite overall revenue up 18%. CEO Satya Nadella says Xbox will recommit to core fans and fundamentals, with price adjustments to Game Pass (US: $29.99→$22.99; UK: £22.99→£16.99; PC: $16.49→$13.99; UK PC: £13.49→£10.99) and continued focus on the next-gen Project Helix hardware under new Xbox leadership. Sharma’s moves aim to stabilize Xbox engagement while strengthening the broader Windows/Xbox/Bing/Edge ecosystem.
- Xbox "has work to do", but is "recommitting" to core fans following hardware revenue drop of 33% year-on-year Eurogamer.net
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- ‘We know we have work to do’: Xbox’s Asha Sharma comments on latest financials as Xbox revenue declines again Video Games Chronicle
- 'We Know We Have Work to Do' — Microsoft's Continued Console Sales Struggle Shows the Stark Reality of the Job Facing New Xbox Boss IGN
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