Xbox revenue fell to US$5.379 billion in the quarter ended September 30, 2026, from a recast US$5.508 billion a year earlier. That is US$129 million, or about 2.3%, lower.
Microsoft's October 28 results are unaudited and cover its fiscal 2027 first quarter.
Xbox's content-and-services revenue fell 2% from the same time last year. With exchange-rate shifts stripped out, the fall was 1%, Microsoft says.
Its metrics table groups games and in-game content from Microsoft and other firms with Game Pass and other subscriptions. Cloud play, ads and other cloud services also count. The 2% fall applies to all of that revenue together. It does not tell us how many people have Game Pass.
The table also shows a 10% fall for the quarter that ended in June. That was a year-on-year change too. The latest fall is smaller, but the two rates do not show how revenue changed from June to September. Each compares a quarter with the same time a year before.
September's reporting changes put Xbox, Windows and search ads in Devices and Consumer, with prior figures recast.
For October–December, Microsoft forecasts mid-to-high single-digit percentage growth in Xbox content-and-services revenue, compared with a year earlier. The outlook is in US dollars. In the earnings call, finance chief Amy Hood links the forecast to the timing of game launches. She expects growth to slow in the following two quarters.