During the conference call for Q1 of the fiscal year 2026, Microsoft Chief Executive Officer Satya Nadella and Chief Financial Officer Amy Hood provided insight about the performance of the company’s Xbox gaming business.
Nadella, who introduced the livestreamed conference call with a long (and deathly boring) dissertation about generative AI and Copilot, mentioned Copilot for Gaming as well, adding that it provides a “voice-first immersive experience across PC, Mobile, and the new Xbox Ally” portable PC
He then moved on to speaking specifically about gaming, boasting a record of 155 million monthly active users for Microsoft. On top of that, we hear that the Content and Services part of the business set a new revenue record for Q1.
“In gaming, we expanded our reach across every endpoint focused on our high-margin content and services. We launched critically acclaimed games like Keeper, Ninja Gaiden 4, and The Outer Worlds 2, reaching 155 million monthly active users in Minecraft, an all-time high, and set a new record for overall Content and Services revenue for the quarter. “
On top of that, Nadella boasted a “great response” to the Xbox Ally portable PC and a new record for players on the PC platform as a whole.
“We also saw a great response to the Xbox Ally launched two weeks ago, and set new records for players on PC.”
As usual, Hood also announced the revenue forecast for the gaming business related to the current quarter, between October and December 2025.
Microsoft expects Xbox Content and Service revenue to decline in the low-to-mid single-digits due to the comparison with the previous year, which benefited from strong first-party performance, partly offset by growth in subscriptions.
It’s worth mentioning that Hood expected a decline for Xbox Content and Service revenue in the previous quarter as well, but her forecast proved inaccurate, as the segment ended up recording a small growth.
If you want to know more about Microsoft’s and Xbox’s financial performance, you can check out our article dedicated to the financial results announced earlier today.
