Overview
- Xbox content and services revenue rose 1% year over year, driven by Game Pass and third‑party sales, with first‑party content declining.
- Console hardware revenue fell 29% from a year ago, with reporting characterizing the drop as fewer units shipped and sold at retail.
- The performance exceeded prior guidance from CFO Amy Hood, who had projected a mid‑single‑digit decline for content and services.
- Microsoft’s Personal Computing segment, which includes Xbox, reported an 18% year‑over‑year increase in operating income.
- Upcoming releases such as The Outer Worlds 2 and Call of Duty: Black Ops 7, plus ASUS ROG Ally device sales from their Oct. 16 launch, are set to be reflected in the next quarter.