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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →Microsoft reported a 42% year-over-year decline in Xbox hardware revenue for its FY24 fourth quarter, which ended June 30, 2024. That is a revenue figure—not evidence that console sales by unit fell 42%. Microsoft’s later results show continued pressure in parts of the Xbox business, but they measure different periods and categories.
What the 42% figure measures
Microsoft’s FY24 Q4 earnings-call discussion reported that Xbox hardware revenue decreased 42% year over year; on a constant-currency basis, it decreased 41%. The quarter ended June 30, 2024, and Microsoft released its results on July 30, 2024. Microsoft FY24 Q4 earnings-call discussion Microsoft FY24 Q4 earnings release
Revenue is the money generated from hardware sales; it is not the number of consoles sold. The cited results do not provide a matching Xbox console unit count, so they cannot establish that units sold fell 42%.
Hardware was weak while content and services grew
In the same quarter, Xbox content and services revenue increased 61% year over year. Microsoft said 58 percentage points of that growth came from the net impact of its Activision acquisition. The 61% therefore should not be read as a measure of organic growth alone. Microsoft FY24 Q4 earnings-call discussion Microsoft FY24 Q4 earnings release
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What Microsoft’s later results show
The 42% figure belongs to one FY24 quarter and one category: hardware revenue. Later results provide context for the Xbox business, but they are not an update to that statistic.
- FY26 Q4: Xbox content and services revenue decreased 10% year over year, according to Microsoft’s July 29, 2026 earnings release. Microsoft FY26 Q4 earnings release
- FY26 as a whole: Microsoft’s Form 10-K reported that Xbox revenue decreased $1.7 billion, or 7%, for the fiscal year, reflecting declines in content and services and hardware. This is a full-year total-revenue comparison, not a hardware-only quarterly figure. Microsoft FY26 Form 10-K
Microsoft’s FY26 Q3 call materials had forecast a low-teens decline in content and services revenue and a year-over-year hardware revenue decline. That was guidance at the time; the subsequent FY26 Q4 release is the later reported result. Microsoft FY26 Q3 earnings-call materials
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What the numbers do not explain
The cited FY24 Q4 results do not identify a specific reason for the hardware revenue decline. They do not establish that pricing, competition, demand, or inventory caused it. Those explanations would require separate evidence.
For a fair comparison, match both the metric and period: hardware revenue with hardware revenue, content and services with the same category, or total Xbox revenue with total Xbox revenue. Also distinguish reported changes from constant-currency changes and account for acquisition effects where Microsoft identifies them.
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