During the financial conference call for Q4 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 business.
Nadella mentioned during the livestreamed event the current, radical, and definitely unfortunate restructuring happening at Xbox.
The CEO also added that the company expects the gaming business to return to growth in fiscal year 2027, which is the one that started on July 1, 2026, and will end on March 31, 2027.
“When it comes to Xbox, we’re making the necessary decisions required across our content portfolio, platform, and operations to reset the business for long-term growth.
We have the best IP in the industry and talented studios around the world and believe we can bring our strengths together and expect to return the business to growth in fiscal 2027.”
It’ll certainly be interesting to see how Microsoft plans to return to growth in such a short time, considering that layoffs and studio divestitures don’t result in increased revenue. It’s often the opposite.
Hood provided the outlook for the current quarter, between July and September 2026: Xbox content and services revenue is expected to decline in the mid-single digits, and hardware revenue is also expected to drop, although Hood did not mention by how much.
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.
