60°

Exclusive Developer Interview ft. Phantom Blade Zero

Interview with Soulframe and Mike Peng from S-Game.

60°

Microsoft Expects More Xbox Content and Services Revenue Decline Despite Game Pass Growth

During the conference call for Q2 of FY2026, Microsoft CEO Satya Nadella and CFO Amy Hood talked about the future of the xbox business.

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dveio3h ago

«partly offset by growth in Xbox Game Pass.»

I take it with a big grain of salt. They've been reporting nothing about GP, only words.

We still don't have any hardware numbers, no software units sold, no subscription numbers, no PC vs console GP, we don't have any profit numbers ... we literally have nothing but overall revenue and words.

Reaper22_3h ago

Does it really matter? Are you shareholder? Gamers have to stop acting like these companies owe us something. Its obvious everything is down. Thats completely normal in all businesses. It will be up and down again.

SimulationDaily2h ago

It's hilarious for me to hear the console warrior's hate for game pass.

It's an option, and it's a net positive for the customer to have options. The whole "concern for developers" is fake drivel to thinly veil console warrior discourse.

dveio2h ago

Yes, since they don't get tired spewing out word salad 12 months a year.

"Biggest launch", "millions of players", "growth of", "here look our revenue", "We buy ABK", "We'll bring you 1st party every quarter", "Biggest this, biggest that", "We always wanted to share games with everyone", "We're growing", "biggest launch", "millions of players", ... you get the point.

They either shut up.

Or deliver numbers like Nintendo, Playstation, hell even Tencent does.

On a sidenote:

Just years ago, Microsoft wanted to buy out a whole lot more than just Zenimax and ABK. They even wanted to push Sony out and collect Nintendo in.

You bet your butt I'm demanding numbers.

SimulationDaily54m ago

@dveio: The fun part is that you can demand whatever you want, but you're owed nothing.
Life lesson for you: you almost never get what you want. The more kids learn it, the better.

Aloymetal49m ago

''Does it really matter? Are you shareholder?''
Says the one that's always bragging how much money MS make instead of how many goty/great games they produce lmao! BTW, Your defense of Microsoft is only highlighting MS & Lord Phil's mismanagement. The more $ they make, the more lame they look.

varora38m ago(Edited 23m ago)

Abreil maybe it's not us and it's actually you, honestly why the F would you say that people are wrong for wanting numbers that back up their claims.

You are the problem for defending them when OBVIOUSLY they are engaging in obfuscation and misleading people. This is a company that has REPEATEDLY got caught lying to their investors and consumers and convicted of such in court in multiple different cases over their history.

Of course in 2026 you can't touch them because people like you have become so accepting of cooperate BS that the legal systems of countries have become so pro-cooperate that obviously anti-consumer cases no longer even have a chance of succeeding due to corruption.

For example a case being decided by a judge that has a son who works for the company on trial, a situation where 30 years ago would have instantly been grounds for recusal.

When you need to start calling people fanboys or console warriors because you can't make any type of actual argument... well let me tell you, you have already lost the argument.

Prove me or dveio wrong with an actual argument and not name calling and emoji's that just make you look like an idiot.

+ Show (2) more repliesLast reply 38m ago
rlow13h ago

I really think Call of Duty underperforming, the raise in subscription prices and Hoods ridiculous expectations of 30% return. Is what led to the lower numbers.

varora2h ago

You would think that after all the times Microsoft has made claims about Game Pass profitability then to be proven to have lied or at a minimum mislead people as shown by various factors, even in court statements and documents that people would stop falling for it.

But I guess when certain people pushed so hard to convince people that industry consolidation by Microsoft was a good idea they have to keep defending them and pushing the narrative forever.

SimulationDaily2h ago

It's time N4G starts cracking down on troll accounts made an hour ago. 😌

Imagine completely distorting reality and thinking it makes you look smart.

varora2h ago(Edited 2h ago)

What part was distorted?

Or is it that you just don't like people who don't take Microsoft at face value and just want any kind of dissent silenced?

varora2h ago(Edited 2h ago)

Let me say I understand you have to report what Microsoft says.

But, Abriel you quite factually called the FTC ambulance chasers when you were with techraptor and adamantly defended the buy out on N4G. And Micrsoft did in fact get forced to admit that many of thier prior statement about Game Pass and Xbox were in fact untrue in that case. As well as plenty of other times where things they said turned out to be untrue.

I mean, if you look back at things they were saying in 2018-2023'ish then look at how they are forced to put their games on other platforms and the decline of the brand how can you not conclude that much of what they said in 2018-202x was in fact untrue or misleading?

160°

Microsoft Gaming Revenue Drops 9% Year-on-Year, Content and Services Down 5%, Xbox Hardware Down 32%

Microsoft announced its financial results for Q2 of fiscal year 2026, including an update on its gaming business.

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Eaten818h ago(Edited 18h ago)

They are the only company keeping PS5 alive - you better hope they don’t die!

varora17h ago

Ironically, it's PlayStation that's saving xbox, they're the only ones buying the games.

Eaten813h ago

They should merge then, because Sony apparently can’t make games anymore.

Scissorman12h ago

yes, cause 18 million PS5s sold last year because of xbox's games... meanwhile xbox sold 2.5 million for the year...

Eaten812h ago(Edited 12h ago)

Well they certainly weren’t sold because of the non-existent Sony games…

jjb198110h ago(Edited 10h ago)

Bro, why do you need to make alt-accounts to troll? Maybe if you play a PS5, you'll magically grow a pair.

peppeaccardo8h ago

it would be usefull to switch on what is left of your brain before writing a post ... you risk to come through as a dumb a$$

ocelot075h ago

@jjb1981

It's called mental illness it's a terrible thing to have unfortunately. Things that seem strange, crazy, sad and pathetic to the likes of you and I. To them it's a normal every day thing. It's what probably keeps their mind focust from thinking about other scary things.

+ Show (4) more repliesLast reply 5h ago
1Victor1h ago(Edited 1h ago)

🚨🚓🎼 🎶 🎼 👇

Outside_ofthe_Box18h ago

Pretty surprising on revenue and content being down. Obviously hardware being down is expected, but you'd think that the GamePass price hike, CoD, and things such horizon 5 coming to PS5 would drive things up. No wonder MS is all-in on the multiplat strategy, don't really have choice at this point. There might be another GP price hike this year.

SimulationDaily17h ago

COD is likely the issue. It appears BO7 is doing significantly worse than BO6. Game Pass is apparently growing, so the problem isn't there.

varora17h ago(Edited 17h ago)

Game Pass growing... that's not what I hear, I hear that it shed around 30% of it's Ultimate subscribers after the price hike as well people canceling other tiers. And you just reported services were down which would indicate the exact opposite.

SimulationDaily16h ago(Edited 16h ago)

@Varora: What you "hear" (from your uncle who works at Nintendo?) is irrelevant when the CFO of Microsoft says the opposite in the conference call.
Incidentally, "content and services" are down, not just services, which include Call of Duty. If you don't know how to interpret financials, don't try 😂

Edit: Oh wait... another troll account made 46 minutes ago. I really need to learn to check before engaging. 😂

varora16h ago(Edited 16h ago)

Well, certainly no one should question the honesty of a Microsoft executive...

But, I heard that between people downgrading and canceling it was as much as 30%.

And even though they raised the price of Game Pass Ultimate by 50% and an average increase across all tiers of 38% which of course grew subscribers so, you would think it should have made significantly more money, but you know who am I to argue its not simply CoD, it did massively under perform.

The good news is that Microsoft's consolidation of the industry really seems to be paying off for them, the industry and its former employees.

Eaten813h ago(Edited 13h ago)

Varoras source: trust me bro, my wife’s boyfriend works at Xbox!

+ Show (1) more replyLast reply 13h ago
Kurt Russell7h ago

I noped my way out on the last price hike. Whilst Ultimate was convenient for a while being also able to Play on PC, it became too rich for my blood.

CrashMania16h ago

Wonder how the goalposts will be moved this time, it shifted from exclusives and console sales, to revenue, where now then.

Lightning7713h ago

No goal post. It was down last January also. Amy Hood predicted this was gonna happen. You gave us and downs, that's simply how it works.

ocelot075h ago(Edited 5h ago)

Think it was down last January but I don't know why. There is probably a genuine reason for it.

DivineHand12515h ago

There is no incentive to buy into a closed ecosystem with no exclusives. I wish they would just make windows lite or steam os bootable on the Xbox so long time fans who still own the console can get some enjoyment.

Lightning7713h ago

Closed ecosystem? How's it closed?

__y2jb9h ago(Edited 9h ago)

All consoles are closed eco systems. This in itself is not a problem but a closed eco system without exclusives is pointless when there’s alternatives that have them.

NotoriousWhiz2h ago

That's why xbox's next (and final) "console" will actually be a PC.

derek14h ago

And Microsoft wants to release another super expensive console next gen? Bizzaro world economics over there. Phillip Bartholomew Spencer will be promoted on the strength of these loses. Lol

TriniOutsider13h ago

Their next console has to be released. I could only imagine how much R&D they've already put into their next platform.

derek13h ago

Sunk-cost fallacy in action.

__y2jb9h ago

Yes let’s release so we can lose even more money!

Eonjay1h ago

Its a PC.. I don't think they spent a lot of money to R&D the idea of releasing a prebuilt PC. And they are not subsidizing it so by that token I don't see any reason why they wouldn't release it unless they pivot from hardware altogether.

NotoriousWhiz2h ago

They're just releasing a PC. And they don't intend to subsidize the cost so it's going to priced like any other PC and probably expected to ship PC-like numbers and not the many millions that consoles sell. After that, they'll eventually go third party and xbox hardware will be a thing of the past. Sega says hi.

Show all comments (66)
60°

Highguard CEO responds to that poorly-received Game Awards reveal

Dusty Welch told PC Gamer: "Look, I wish Highguard had been received better."

jjb19811d 17h ago

Turd of the Year 2026. The game is bad. Very boring, the map sucks and having 18-shot revolvers with a six-chamber cylinder just shows how lazy they are.

InUrFoxHole1d 16h ago (Edited 1d 16h ago )

Wait are you saying you want a 18 chambered cylinder? Thats just a wild gripe. I get the other 2 but be real man

Dagexon1d 16h ago (Edited 1d 16h ago )

I mean wanting the weapon to make some sort of sense is reasonable

Dagexon1d 16h ago

I mean wanting the weapon to make some sort of sense is reasonable

jjb19811d 13h ago

At least design it in a way that makes sense. FFS, don't even make it have six chambers. Such a great idea to do a reload animation, showing me load six bullets but now I magically have 18. Yeah, ok. The game will be dead because greed not creativity is their motivator.

+ Show (1) more replyLast reply 1d 13h ago
Alek8321h ago

If you play more than a few matches, you will see that the map was made for at least 6v6 instead of 3v3. 5v5 at least. 3v3 was a terrible decision with that map.

PapaBop1d 4h ago

Their entire release strategy was a mistake, I get that Apex was shadow dropped too but that was from an established studio with EA's backing. This game isn't for me but going by what I've read what people are saying, it would have benefitted massively from a few betas and the chance to grow with community feedback before the release.

jambola1d 1h ago

Apex also wasn't shown off at the end of a 4 hour show amd hyped up to be an amazing reveal

__y2jb1d 3h ago (Edited 1d 3h ago )

A hyper generic, f2p, mtx filled, live service hero shooter (with horses)...just what everyone wants!

Michiel19891d ago

and this is why you properly test a multiplayer game. The game has some cool concepts but the execution seems to be terrible even though I think it can be salvaged with not that much work, but not sure if that can save it even if that happens.