Satya Nadella says Xbox will "reset the business" as revenue drops 7%
“We are making the necessary decisions required across our content portfolio, platform, and operations to reset the business for long-term growth. We have the best IP in the industry and talented studios around the world and believe we can bring these strengths together and expect to return the business to growth in fiscal 2027.”
Reported July 30, 2026 by gizmodo.com. Checked word for word against that report.
Microsoft CEO Satya Nadella addressed investors during an earnings call after the company reported that its Xbox business—part of the More Personal Computing segment—saw overall revenue fall 7% year over year, with content and services dropping 10% and hardware sales declining 29%. Nadella stated that the company is making necessary changes across its games lineup, platform, and operations to turn the division around, aiming for a return to revenue growth by the 2027 fiscal year. The results come as console prices climb due to rising memory costs tied to AI infrastructure, and as Xbox faces stiff competition from the upcoming release of *Grand Theft Auto VI*, which will be available on rival PlayStation consoles as well. Microsoft’s long-term strategy reportedly hinges on a future hybrid console-project, codenamed Helix.
- gizmodo.com ↗︎30 JUL 2026