During the conference call for Q2 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.
During the livestreamed conference call, Nadella had a shorter comment to share about gaming (following a very long-winded and frankly boring tirade about AI), which isn’t surprising considering the declining trends in the financial results.
That being said, he boasted a record for PC players and reiterated the commitment to deliver great games across all devices.
“In gaming, we’re committed to delivering great games across Xbox, PC, cloud, and every other device, and we saw record PC players and paid streaming hours on Xbox.”
Hood mentioned that the results in gaming for Q2 announced earlier today were actually below Microsoft’s expectations.
As for Q3, between January and March, Hood explained that Microsoft expects Xbox Content and Services revenue to decline in the mid-single digits against “a prior year comparable that benefited from strong content performance” (pretty much like in the current quarter), partly offset by growth in Xbox Game Pass.
Hardware revenue is expected to continue to decline, surprising pretty much no one.
Considering the mention of Game Pass growth, it’s likely that the primary cause for the Xbox Content and Services revenue decline is underperformance of Call of Duty: Black Ops 7 compared to Black Ops 6, but that’s just my personal speculation, which you should take with a grain of salt.
If you want to know more about Microsoft’s and Xbox’s financial performance for the quarter that recently ended, you can check out our article dedicated to the financial results announced earlier today.
