Microsoft’s gaming business is failing to gain momentum, even after its change in leadership, now under Asha Sharma, and the adjustments made to its strategy.

Xbox continues to face difficulties, and the numbers paint a worrying picture of the gaming brand’s situation as the current console generation draws to a close and a new era approaches, which reports suggest will begin in 2028.

Microsoft has released its quarterly results, revealing that not even Game Pass can save Xbox at the moment.

XBOX reseñas

Xbox’s Downward Trend Continues: The Brand Reports Another Troubled Financial Quarter

A few moments ago, Microsoft presented its financial report for the first quarter of fiscal year 2027, covering the period from July 1 to September 30 of this year.

When it comes to Xbox, the company has little good news to share. Once again, it reported declines in key business segments that had been growing until recently and served as a lifeline while the brand waited for better times that never came.

According to Microsoft’s report, Xbox’s content and services revenue declined 2% year over year. This segment includes Xbox Game Pass, which was once one of the brand’s main growth drivers for years but is now also experiencing a downturn.

The company reported lower revenue from third-party content. As for its first-party lineup, Microsoft revealed a modest 1% increase, the only positive figure worth highlighting during the period.

Xbox Series X|S Are Struggling as Their Generation Nears Its End

One piece of news that has become increasingly common with every Microsoft financial report is the decline in revenue generated by its gaming hardware, specifically Xbox Series X|S.

Today’s report revealed a 14% drop for the quarter, adding another setback for the North American company’s consoles in the market.

It’s worth remembering that a couple of years ago, Amy Hood, Microsoft’s CFO, acknowledged that console sales were trending downward. At the time, she said the company did not expect to see positive figures at any point before the end of the generation.