Xbox Continues to Struggle: Microsoft Reports Declines in Content and Game Pass, While Its First-Party Lineup Sees Only Modest Growth | LEVEL UP

Xbox Continues to Struggle: Microsoft Reports Declines in Content and Game Pass, While Its First-Party Lineup Sees Only Modest Growth | LEVEL UP

By @LevelUPcom
Publication Date: 2026-10-31 12:00:00

Microsoft’s gaming business is failing to gain momentum, even after its change in leadership, now under Asha Sharma, and the adjustments made to its strategy.

Xbox continues to face difficulties, and the numbers paint a worrying picture of the gaming brand’s situation as the current console generation draws to a close and a new era approaches, which reports suggest will begin in 2028.

Microsoft has released its quarterly results, revealing that not even Game Pass can save Xbox at the moment.

Xbox’s Downward Trend Continues: The Brand Reports Another Troubled Financial Quarter

A few moments ago, Microsoft presented its financial report for the first quarter of fiscal year 2027, covering the period from July 1 to September 30 of this year.

When it comes to Xbox, the company has little good news to share. Once again, it reported declines in key business segments that had been growing until recently and served as a lifeline while the brand waited for better times that never came.