Xbox content and services revenue down 2%, hardware down 14%

Microsoft reported first-quarter fiscal 2027 results: Xbox content and services revenue fell 2% year-over-year on weaker third-party content and Game Pass, while hardware revenue dropped 14%. Operating expenses in the Devices and Consumer segment declined 3%, driven partly by Xbox.

• Xbox content and services revenue fell 2% year-over-year
• Hardware revenue dropped 14% year-over-year
• Devices and Consumer operating expenses declined 3%, driven by Xbox
• The Game Pass price cut has not yet lifted service revenue