Microsoft recorded a clear decline in the performance of the gaming sector during the third quarter of 2026, as Xbox hardware revenues decreased by 33%, in addition to a decline in content and services revenues by 5%.

This decline comes at a time when the company continues to restructure the gaming division after major management changes, including the departure of Phil Spencer and Sarah Bond, with Asha Sharma assuming responsibility for leading the current phase and rebuilding the Xbox strategy.

On the other hand, Microsoft achieved strong growth driven by the cloud computing and artificial intelligence sectors, which offset a large part of the decline in games, and CEO Satya Nadella confirmed that the company is focusing on improving the user experience, including reducing the cost of Xbox Game Pass and developing system services.

The recent updates also included improvements to Windows 11 in terms of performance and ease of use, as part of a broader trend to refocus on the basics and enhance user satisfaction.