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# Xbox revenue plunges $1.7bn, with hardware dropping 29% YoY

**[GamesIndustry.biz](https://daily.dev/sources/gamesindustry)** · 3 min read · 0 upvotes · 0 comments

## Summary

Microsoft's Xbox division posted a significant revenue decline, with full-year revenue down 7% and hardware sales dropping 29% year-over-year due to reduced console sales. Game Pass growth partially offset the losses. In Q4, Xbox content and services fell 10% and hardware dropped 13%. The company responded with layoffs affecting 4,800 employees globally, including 1,600 Xbox roles, with further cuts planned in FY27. Several studios were restructured: Double Fine and Compulsion Games became independent, while Undead Labs and Ninja Theory entered negotiations for new ownership. Microsoft CEO Satya Nadella expressed confidence in returning Xbox to growth by fiscal 2027, citing strong IP and studio talent.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://www.gamesindustry.biz/xbox-revenue-plunges-17bn-with-hardware-dropping-29-yoy>

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---

Tags: [#microsoft](https://daily.dev/tags/microsoft), [#gaming](https://daily.dev/tags/gaming), [#xbox](https://daily.dev/tags/xbox)

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