Microsoft’s quarterly revenue is in for its Q3 2026 earnings. While the company is up overall, it’s a different story for its Xbox division, which has reported declines across the board.
In what feels like a notably honest response, Xbox CEO Asha Sharma took to X (formerly Twitter) to address the performance directly. Her comment strikes a more candid tone than usual and is not something I feel like we usually get following poor performance from a company, acknowledging the clear shortcomings at Xbox.
“Xbox earnings today. While we have made progress expanding the business and our margins, player and revenue growth has not yet met our ambition. We know we have work to do to earn every player today and into the future.”
It’s honestly quite straightforward, and that’s what Xbox needs right now. I’m sure nobody expected Xbox to do a complete 180 in the two months since Sharma became CEO, as that would be ridiculous and nothing short of a miracle.
For those who don't know, here are the reported earnings for the FY26 Q3 period:
- Xbox Hardware Revenue down 33%
- Xbox Content and Services Revenue down 5%
- Gaming revenue down 7%
Fans online have had some choice comments regarding what Sharma said. One user on r/Xbox stated:
“Xbox needs to bring back the appeal of Xbox consoles, which should be the priority point of the brand. Gives us again reasons to invest in the platform."
It’s a sentiment that has been discussed heavily lately, often leading back to the topic of exclusives, something that is reportedly under heavy discussion at Xbox.
What is clear here is that people aren’t expecting Xbox to rebuild overnight. Many are acknowledging how Sharma is doing so far, while also recognizing how much work is left to do.
Others, meanwhile, are simply cheering Asha on, with one user stating: “You can do it, Asha."
It’s certainly a refreshing time to be an Xbox fan, and it’s also refreshing that this is the first real bad news we’ve had in two months, though this was unavoidable, so let’s just hope it isn’t followed by more bad news (fingers crossed!).
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