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The story
In its earnings for the July-September 2026 quarter (Q1 FY2027), Microsoft reported that its Xbox division saw gaming revenue fall 2% year-over-year, content services revenue also down 2%, and hardware sales down 14%. On 5ch’s hardware/industry board (/ghard/), opinions split over whether the post-price-hike consoles are genuinely in short supply or simply not selling, over how to judge the commercial performance of ‘Gears of War,’ and over how Xbox Series stacks up against Switch 2 and PS5 in NPD’s unit sales data. Meanwhile, Microsoft as a whole posted blowout results for the same quarter — ¥14 trillion in revenue (up 19% year-over-year) and ¥5.8 trillion in net profit (up 32%) — leading some to point out that the Xbox division alone is being left behind in the shadow of the thriving AI business.
What people said
Gaming revenue -2% ❌
Xbox content services revenue -2% ❌
The exclusive Gears title didn't sell at all, and it's a massive loss.
They've only ever reported percentage changes, not actual figures.
In the end, running Xbox is all about how well the person in charge can fool the fanboys. It's dead last in popularity, so nothing's going to fix that.
She said it's improved (compared to her predecessor's era), not that it's a success, right?
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XBOX: TBD
LMAOOO
Has there ever been a more embarrassing moment than this? lol
Well, they've never disclosed divisional profit, so outsiders won't really know.
Won't Asha be held responsible for turning Gears into such a huge loss?
NPD:
Hardware — Total video game hardware unit sales fell 3% year-over-year in September. PlayStation 5 unit sales rose 22% year-over-year, Switch 2 fell 14%, and Xbox Series fell 27%.
It's normal for more hardware to ship in July-September than in April-June, so that's nothing to brag about. Unit numbers should be judged against the same quarter last year. They raised prices and revenue is still down 14%, meaning unit sales fell even further than that — no matter how you spin it, there's no way to make the console numbers look good.
It's dead last by a mile and posts huge year-over-year declines every single year, and you're saying it's actually selling fine, just out of stock? lol
Hold on a second — isn't this guy trying way too hard? It's kind of hilarious lol
The fact that a console in its 6th year is suddenly struggling with production is a problem in itself. Failing to produce enough when there's actual demand is a failure in its own right. Do they really think people will still buy it if they ramp up production later? Even after GTA6 comes out?
What about the game people are calling 'Tōkon' (lit. 'fighting spirit') — its peak was even lower than the supposedly bombed Gears, so is that one going to be okay?
And there it is, the 'bu-but PlayStation!' deflection. lol
If it's really a stock shortage, that's just an admission of incompetence. But really, it's probably just not selling.
At places like Yodobashi, I think units sold out whenever they came in — at least before the price hike. After the price hike, I don't know since nothing's come in, but I'd guess Yodobashi doesn't want to stock it because they expect it won't sell.
Does Asha actually think there's demand for Helix? Even an idiot can tell that thing's going to be a total bomb.
Fair point. But that's on Microsoft for not disclosing hardware shipment numbers in the first place, so there's not much choice. Also, the US makes up a big share of Xbox sales, so US unit-tracking data gives a reasonably good read. It's not likely to be way off.
That's exactly why they make the numbers meaningless — to obscure how much they're actually making. If they were genuinely profitable, they'd just say so plainly.
Microsoft's overall earnings were booming.
https://www.nikkei.com/article/DGXZQOGN28CHP0Y6A021C2000000/
For the most recent quarter (July-Sept 2026), revenue hit ¥14 trillion, up 19% year-over-year, with net profit of ¥5.8 trillion, up 32%.
The stock is rallying on the news too.
Japanese game companies will probably die first, lol.
AAAAAAAH
This really shows how dumb /ghard/ can be, huh.
The AI division's revenue is up 50% and overall net profit is up 32%… Clearly some division is dragging things down.
Xbox will keep getting Microsoft's scraps, so it's safe either way. Japanese makers have it rough — they actually have to earn their own money.
Re: #98
Looks like the 'Manhattan Project' and 'Midway Project' are paying off. Is victory just around the corner?
Background and Key Points of This Discussion
Microsoft has not disclosed concrete unit sales or divisional profit figures for the Xbox business in recent years, releasing only year-over-year percentage changes. Because of this, the latest numbers need to be read alongside external data, like NPD’s September North American hardware sales figures (PS5 up 22% YoY, Switch 2 down 14%, Xbox Series down 27%). Xbox hardware has already seen a price increase, and some in the thread argued that if revenue is still down year-over-year even after that hike, the actual unit decline must be even steeper. At the same time, Microsoft as a whole continues to post rising revenue and profit, driven largely by its AI business, with some pointing out that development and production resources are being prioritized for AI. The real state of the Xbox division is hard to judge from disclosures alone, so it’s worth continuing to track these percentage changes in future earnings reports.
*This article was compiled and summarized from the 5ch (Hardware/Industry [/ghard/]) thread “Xbox Earnings: Gaming Revenue -2% ❌ Xbox Services Revenue -2% ❌ Xbox Hardware -14% ❌.”
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