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Microsoft XBOX revenue decline narrows as console demand exceeds supply

Microsoft XBOX CEO Asha Sharma said revenue fell 2% year over year in the first quarter of fiscal 2027, compared with a 10% decline in the preceding quarter, while margins improved. Console demand still exceeded supply, limiting sales. XBOX was working to deliver more consoles and expand its refurbished-console program.

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Microsoft XBOX revenue decline narrows as console demand exceeds supply
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What to know

  • 01

    Sharma said Minecraft performed above expectations and set records.

  • 02

    PC platform revenue posted double-digit growth.

Why it matters

The reported supply constraints are relevant when interpreting XBOX console sales performance.

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