It was another not-great quarter for Xbox, and that's probably not great news for a division of Microsoft that in the minds of many observers is already up against the wall. But CEO Asha Sharma is having none of that defeatist talk, saying after the company posted its result that she expects Xbox to return to growth by the end of the 2027 fiscal year.
Xbox content and services revenue for the company's fourth quarter were down 10% compared to the previous year, while operating expenses increased by 8%, which chief financial officer Amy Hood said in an earnings call was driven by investments in R&D and impairment charges. Operating income decreased 14%, and operating margins were down by 21%.
