Following negative financial report, Xbox wants pay more attention to 'what players value'

Xbox's latest financial report makes it clear that the company needs to shift its focus If anyone needed more confirmation that Xbox is not in a good place right now, the financial report for the final quarter of this fiscal year makes it brutally clear. Although Microsoft's overall revenue has increased, the company's latest fiscal report reveals a significant decrease in Xbox services and content sales for the fourth quarter of 2026. Compared to last year, Microsoft's total gaming revenue has gone down by 10% — a major decrease for a billion-dollar company. Content and services revenue was aldo down by 10%, while hardware revenue dropped by 13%. It's no mystery that Xbox is losing money: The recent layoffs have been the talk of the gaming world, with several Xbox Game Studios forced to become independent or to suffer hindering cuts. In a previous statement, Asha Sharma, Xbox CEO, said that the business is currently not healthy. And while a lot of effort has been put into improving Game Pass, multi-platform gaming, and the number of games available on Microsoft platforms, the business did not grow at an expected pace. With the release of the financial report, Sharma spoke out and