The Microsoft Corporation released a report outlining the financial results for the last three months of 2025, marking the second quarter of its fiscal year 2026.
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- From October to December 2025, Microsoft earned a total of $81.27 billion. Compared to the end of 2024, its revenue grew by 17%.
- At the same time, revenue from the gaming division fell by 9.4% to $5.96 billion.
- Revenue from Xbox console sales and other gaming hardware continued to decline rapidly. By the end of the quarter, it had decreased by 32%. Microsoft explained that this was due to a reduction in the number of consoles sold.
- Revenue from Xbox gaming content and services dropped by 5%. The decline was related to weaker sales of games from Microsoft’s internal studios—there was higher demand at the end of 2024 compared to the end of 2025.
- Microsoft recorded a record number of PC players in the past quarter, although the exact number was not specified.
- According to Microsoft’s forecast, revenue from its gaming division is expected to decrease again from January to March 2026. The corporation anticipates declines in both hardware and game segments.
