Xbox added 200 million players in FY2026 as revenue fell every quarter

Xbox executive Asha Sharma said over 200 million new players came to Xbox and its games in FY2026, but the business did not grow with that audience. Revenue fell year-on-year in every quarter — content and services down 10% in Q4, hardware down 13%. Microsoft cut 1,600 Xbox jobs in July 2026 with 1,600 more planned for FY2027. Sharma and CEO Satya Nadella expect a return to growth by June 30, 2027.