Microsoft has reported a 10% year-over-year decline in Xbox content and services revenue for the fourth quarter of fiscal year 2026, marking the only Xbox-specific financial metric disclosed in its latest earnings release.
The company does not report Xbox as a standalone business segment. Instead, the gaming business is included within its More Personal Computing division, which also covers Windows OEM, Windows devices, search advertising and other consumer businesses. As a result, Microsoft did not provide separate figures for Xbox revenue, operating profit, hardware sales or Game Pass revenue.
For the fourth quarter of FY26, the More Personal Computing segment generated $12.9 billion in revenue, down 4% year over year, or 5% in constant currency. The division reported operating income of $2.748 billion, representing an operating margin of approximately 21.4%.
For the full fiscal year, More Personal Computing revenue totalled $54.052 billion, compared with $54.649 billion in the previous year. Operating income increased slightly to $14.386 billion from $14.166 billion.
Microsoft also confirmed that the quarter included restructuring-related costs tied to Xbox. The company said results were partially offset by severance expenses and impairment charges related to the gaming business, although it did not disclose the value of those charges.
The earnings release did not include updated Game Pass subscriber numbers or provide any information on Xbox hardware sales, standalone Xbox revenue or operating profit. As a result, the 10% decline in Xbox content and services revenue remains the only direct performance metric Microsoft disclosed for its gaming business during the quarter.
