During the financial conference call for Q1 of fiscal year 2027, Microsoft Chief Executive Officer Satya Nadella and Chief Financial Officer Amy Hood provided insight into the performance of the company’s Xbox business.
Nadella talked about games briefly after fifteen incredibly boring minutes blabbering about AI, reiterating the company’s intention to create great games across platforms.
He also boasted a record quarter for Minecraft and a successful beta test for World of Warcraft, on top of the positive press reception for Call of Duty: Modern Warfare 4.
“In gaming, we remain focused on building great games and reaching players wherever they choose to play, across consoles, PC, mobile, and cloud.
Minecraft delivered a record quarter, reaching all-time highs in both engagement and revenue, while World of Warcraft had its largest beta in franchise history.
We enter the Holiday season with one of the strongest first- and third-party lineups in years, including Modern Warfare 4, which launched last week to the best reviews for a Call of Duty game in more than a decade, and Grand Theft Auto 6, which is coming to Xbox next month. “
As usual, Hood provided the outlook for the current quarter, between October and December 2026: Xbox Content and Services revenue is expected to go back to growth in the mid-to-high single digits, driven by the content launch patterns across first- and third-party.
Specifically, Xbox expects growth to be the strongest in the second quarter (the current one), with some deceleration in Q3, and further moderation in Q4.
Hardware revenue in Q2 is expected to decline year-on-year again, which really surprises no one.
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.
