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Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →The 42% decline in Xbox hardware revenue is a year-over-year figure for Microsoft’s fiscal quarter that ended June 30, 2024. It is a historical number, not a description of Xbox’s current sales. It was reported by The Verge in July 2024, and it does not appear in the searchable text of Microsoft’s own fourth-quarter release. Microsoft’s full-year figure for that same fiscal year was a 13% decline, and its later quarters show different numbers altogether.
What the 42% figure measures
The claim compares Xbox hardware revenue in the quarter ended June 30, 2024 with the same quarter a year earlier. It is a single quarter, measured year over year, and it covers hardware only: consoles and related devices. It does not cover content and services, which include Game Pass, digital game sales and in-game purchases.
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The figure circulated through a July 31, 2024 repost of The Verge’s report, including an automated Reddit summary of that article. That makes it secondary reporting. Microsoft’s fourth-quarter fiscal 2024 earnings release confirms the quarter’s end date, but the searchable text of that release does not state a hardware percentage. Readers who see the 42% number attributed to Microsoft’s release should know that the release’s searchable text does not contain it.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchWhat Microsoft’s own reports show
Microsoft’s official figures for Xbox hardware and services are reported across several periods. Comparing them requires matching the period, the category and the source.
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| Period | Xbox category | Reported change | Source and notes |
|---|---|---|---|
| Quarter ended June 30, 2024 (year over year) | Hardware | Down 42% | The Verge report, repeated July 31, 2024. Secondary source; not in the searchable text of Microsoft’s fiscal 2024 Q4 release. |
| Quarter ended June 30, 2024 | Content and services | Up 61% | Microsoft fiscal 2024 Q4 release. Microsoft said 58 points of the growth came from the Activision Blizzard acquisition. |
| Full fiscal year 2024 (compared with fiscal 2023) | Hardware | Down 13% | Microsoft fiscal 2024 performance page. Annual figure, not the quarterly one. |
| Fiscal 2026 Q3 | Hardware | Down 33% | Microsoft fiscal 2026 Q3 segment page. Microsoft attributed the decline to fewer consoles sold. |
| Fiscal 2026 Q3 | Content and services | Down 5% | Microsoft fiscal 2026 Q3 segment page. |
| Fiscal 2026 Q4 | Content and services | Down 10% | Microsoft fiscal 2026 Q4 press release, dated July 29, 2026. The searched release highlights do not state a hardware percentage for this quarter. |
Two points follow from the table. First, the 42% figure and the 13% figure describe different periods, so they do not contradict each other. Second, the 61% services increase in the 2024 quarter sits alongside the hardware decline in that quarter, and it should not be read as evidence that hardware sales recovered. Microsoft’s own reporting keeps those categories separate.
Is Xbox hardware revenue still falling?
The most recent hardware figure Microsoft has published in the sources reviewed is the 33% decline for fiscal 2026 Q3. That decline was tied to lower console volume, so the company linked it to units sold rather than to pricing or mix. Microsoft’s fiscal 2026 Q4 release reported a 10% decline in content and services revenue, but it did not state a hardware percentage in its searchable highlights. No hardware figure for that quarter should be inferred from other sources.
Rank #2
- What's in the box: Xbox Series X console, 1 Xbox Wireless Controller - Carbon Black, Ultra High Speed HDMI cable, Power cord.
- Equipped with AMD's Zen 2 and RDNA 2 architectures, DirectX ray tracing delivers true-to-life lighting, shadows and accurate reflections to create dynamic, living worlds.
- Memory: 16GB GDDR6 w/320 bit-wide bus; Memory Bandwidth: 10 GB @ 560 GB/s, 6 GB @ 336 GB/s; Internal Storage: 1TB Custom NVME SSD
- Gaming Resolution: True 4K; Performance Target: Up to 120 FPS; High Dynamic Range: Up to 8K HDR; Optical Drive: 4K UHD Blu-Ray; HDMI Features: Auto Low Latency Mode, HDMI Variable Refresh Rate, AMD FreeSync.
- Bundled with HDMI_Cable
Comparing 2024 and 2026 therefore means comparing two different quarters, in two different fiscal years, using figures from two different kinds of source. Treat the 42% number as a point in time, and use the fiscal 2026 figures for the current trend.
What Xbox leadership said in 2026
Xbox management has described conditions in 2026 in internal messages that were shared publicly. These statements add context to the current situation. They do not establish why hardware revenue fell in the June 2024 quarter.
Rank #3
- BEST VALUE IN GAMING — Experience next-gen speed and performance in the smallest XBOX ever. The XBOX Series S delivers powerful all-digital gameplay in a sleek, compact design.
- UP TO 120 FPS GAMEPLAY — Enjoy smooth, responsive gaming with frame rates up to 120 FPS, powered by XBOX Velocity Architecture, a custom NVMe SSD, and DirectX Raytracing for a heightened level of realism.
- 512GB CUSTOM SSD AND XBOX VELOCITY ARCHITECTURE — Reduce load times dramatically with the custom 512GB NVMe SSD and XBOX Velocity Architecture, enabling lightning-fast performance and seamless world streaming.
- QUICK RESUME — Seamlessly switch between multiple games and resume exactly where you left off. No more waiting through title screens and loading bars.
- FOUR GENERATIONS OF DIGITAL GAMES — Play thousands of digital games from XBOX Series X|S, XBOX One, XBOX 360, and Original XBOX with backward compatibility. Many titles are enhanced for better visuals and performance. Smart Delivery ensures you always get the best version for your console.
June 10, 2026: supply and cost constraints
In a message to Xbox employees signed by “Asha and Matt,” the team wrote: “We are currently unable to make as many consoles as players want to buy, and we need a new business model and partnerships for hardware as we remain committed to Helix.” The same message discussed rising storage component costs and said that Game Pass had started growing again after more than eight months of decline. The message describes 2026 conditions, not the 2024 quarter.
July 6, 2026: a reset and a growth goal
A July 6, 2026 message attributed to Asha described a restructuring of the business, including the console install base and cost structure. It stated: “We will return to growth in 2027.” That is management’s stated goal, not a forecast Microsoft has guaranteed.
Rank #4
- What's in the box: Xbox Series S 512GB console, 1 Wireless Controller, High Speed HDMI cable.
- CPU: 8X Cores @ 3.6 GHz (3.4 GHz w/SMT) Custom Zen 2 CPU; GPU: 4 TFLOPS, 20 CUs @1.565 GHz Custom RDNA 2 GPU; SOC Die Size: 197.05 mm2.
- Memory: 10GB GDDR6 128 bit-wide bus; Memory Bandwidth: 8GB @ 224 GB/s, 2GB @ 56 GB/s.; Internal Storage: 512GB Custom NVME SSD
- Gaming Resolution: 1440p; Performance Target: Up to 120 FPS; HDMI Features: Auto Low Latency Mode, HDMI Variable Refresh Rate, AMD FreeSync.
How to read Xbox revenue figures
- Check the period. A quarter, a fiscal year and a calendar year give different numbers. The 42% figure is a quarter, the 13% figure is a fiscal year, and the 33% figure is a fiscal 2026 quarter.
- Check the category. Hardware revenue, content and services revenue, and total gaming revenue move differently and should not be substituted for one another.
- Check the source. Microsoft’s earnings pages and segment reports are primary. Press coverage and summaries are secondary and should be attributed as such.
- Check the driver. Microsoft gave a volume explanation for the fiscal 2026 Q3 hardware decline. For the 2024 quarter, the cause reported in the sources reviewed is not established by the 42% figure itself.
Used this way, the 42% figure is a reliable record of one quarter’s year-over-year change as reported in 2024. It is not a measure of where Xbox hardware sales stand in 2026.
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