As Andy already reported, Microsoft has just announced bumper revenues of over $80 billion for the most recent quarter. But not every division within the tech titan is coining it. Its Xbox hardware revenue continues to fall and even its overall gaming services revenues are on the slide.Xbox hardware revenues are reportedly down by 32% in the final quarter of 2025, while overall gaming revenue was down 9%. Microsoft also says in its earnings release that Xbox content and services revenue, including Game Pass, were down by 5%.So, basically anything to do with Xbox and gaming for Microsoft is on the slide, though as The Verge notes, Microsoft isn’t releasing any information on Xbox Game Pass membership rates. That obviously makes it difficult to gauge the impact of the Game Pass Ultimate price hike, which wasn’t exactly warmly received by gamers.Microsoft’s whole Xbox endeavour, of course, is currently in flux. The company has continued to publish more games for play on Sony’s competing PS5 console as part of its broader—and some would argue, incredibly confusing—”This is an Xbox” push to redefine what an Xbox means.That push will even extend to jealously guarded IP such as Halo, the next installment of which will launch on both Xbox and PS5 this year, and also includes the Asus ROG Xbox Ally X, which is a handheld gaming PC with some trimmings added to Windows to Xbox-ify it a bit.At the same time, Microsoft also has its ongoing “Dream Team” collab with AMD involving…
