During the conference call for Q3 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 mentioned during the livestreamed conference call that Microsoft is “doing the foundational work required to win back fans and strengthen engagement” across its consumer business, including Xbox, pretty much echoing Xbox CEO Asha Sharma’s mission statement.
Specifically, he added that the Xbox team is “recommitting to its core fans and players while shaping the future of play.”
He also cited last week’s Game Pass pricing changes as an “example of how Microsoft is staying responsive to customer feedback.”
Lastly, he added that Xbox set new records for monthly active users and streaming hours in the past quarter.
As usual, Amy Hood provided the forecast for the current quarter, which ends on June 30. For gaming content and services, revenue is expected to decline year-on-year again in the low-teens, due to the comparison with the strong first-party content performance in the same period of the previous year, on top of the changes to Game Pass pricing.
Hood also mentioned that hardware revenue is also expected to decline year-on-year, although she did not say by how much. This certainly isn’t surprising.
She did not provide guidance for the whole gaming business, but with both components down, it’s obvious that overall revenue is also expected to be down.
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.
