Microsoft CEO Says Xbox Is 'Recommitting To Our Core Fans' As Revenue Falls In FY26 Q3

For me it seems all to far gone
The two pillars of consoles are set
With Sony and Nintendo.
Xbox will be PC gaming with Helix, meaning no new Xbox console games as we know it as it will be a PC version on Helix and then if you wish you can switch to console dashboard like series x to play your old last generation Xbox console games, however they have not stated if this be via cloud gaming or native download to the console part of Helix, of course the new PC games will be native download.
Helix will sell a few but not as many or probably half the amount of series s and x.

It’s really a revert back to PC.
I think they will publish games to Sony and Nintendo consoles maybe with some delay or if they can sell enough to justify the port investment. Like FH5 was a very good port investment.

I think they are trying to bolster the Xbox brand but hardware wise it’s really gone, even with Helix as it will be a bit niche.

Software and publishing etc will be their income and possibly in someways game pass.
However the small content and services drop of 5% is a warning shot.
Not matter the PR speak spin says.

None of the above is meant in a negative way, just the way I see it going.

Congrats guys. We voted with wallets. They made very big investments into gaming and such financials are a wake up call that they have been doing things wrong and not respecting their fans.

Its the fans that actually make them money by actively playing, making content, buying games and subs - not your casual player who bought a console on Xmass to play gta and then turned it off for 5 years.

As said many times - grow PC/cloud but also pay attention to consoles. As easy as that.

So “core” fans, not ‘hardcore’ fans. I see. Gamepass iterations are nowhere near as important to me as the security that comes with knowing my vast library of physical media will play on future hardware. Cmon Asha, give me a reason to continue investing in this ecosystem. Until I have that assurance, the only logical move is to invest in the ecosystem(s) where these conditions are a bit more certain. There are no guarantees in life, blah blah; still.

I hate when these companies try to make new metrics of success. 'Yeah, yeah, our profits have plummeted.... but look at all these hours! We could buy everything with these hours!'

Corporate nonsense.

@AI-Generation why there would be no xbox console games? Series s/x and ps5 will be the main consoles for next 5 years or so. Most analysts estimate cross gen period to be even longer than previous gen.

Whether for Helix - I agree we need a solid confirmation of native xbox console games support. I dont think they want to lose 30-40M of xbox players next gen and seems like that will be the unique feature of Helix vs any other PC

@CallMeDuraSouka agree on pricing. 450-500 should be series X white and black respectively.

Ps5 pro is now 900 lol and ps5 costs same as xbox so I think this argument is not relevant anymore.

Personally, it's too little, too late.
I bought my Series X for Microsoft Flight Simulator.
Fast forward to today my loyalty has been rewarded with what is objectively the worst version, xbox being the only platform unable to utilise VR.
All Microsoft's early talk of feature parity seems to have gone out of the window sharpish when they got a whiff of that PlayStation money.

Not surprising about hardware sales drop. You had ongoing no hardware marketing combined with 50% Game Pass price increase, so no surprise there.

Let it sink in than even after going multiplatform for all games revenue has gone down for 2 quarters in a row with previous minimal growth for over 2 years.

These numbers are inexcusably bad and hence why so many (needed) U-turns at Xbox, yes FH5 might have sold 5 million copies since PS5 launch last year and yet Xbox keeps shrinking more and more and it’s obvious why, they keep stating Xbox has more users than ever, but for all we know even a CoD player on PS5 or a Candy Crush player can be counted as an Xbox user now, however players on the actual Xbox console are either leaving or spending significantly less than before, I myself went from buying all third-party games on Xbox to not a single one since 2024, which is why now the mission is to “recommit” to all of us who actually spent on their platform and a big chunk of their revenue was coming from, it’s been a good start for Asha but at least for me until I see more concrete action I’ll keep holding on investing in Xbox games, subs and hardware.

Just reading more of this and its now been an over 30% decline in the last two quarters for hardware. It would have been three but the 1st quarter was a 29% decline. They are horrific numbers.

I would also like to highlight Nadella for ultimate corporate speaker with this beauty, '...that empower every business to eval-max their outcomes...'

Like he's coming up with new pokemon or something.

They had my money every month for years. And then GamePass became my most expensive monthly subscription. I was barely using it, but the price wasn't too bad in my mind. But that price hike made me take a deep look and think about it. Now I've moved on. More worried about my car hobby at the moment. It's like no one at Microsoft bothered to even pretend to have basic business school understanding.

Phil was just stealing money. But it was Microsoft's money so get it fam