Microsoft reported that its Gaming revenue fell 9 percent, while Xbox content and services revenue decreased 5 percent in the second quarter of FY 2026. Xbox hardware revenue fell 32 percent year-on-year, Microsoft said.Microsoft reported that its Gaming revenue fell 9 percent, while Xbox content and services revenue decreased 5 percent in the second quarter of FY 2026. Xbox hardware revenue fell 32 percent year-on-year, Microsoft said.