Xbox Series X|S are reportedly sold at a loss as Microsoft faces falling hardware and content revenue

Microsoft reported another drop in Xbox revenue, and Jez Corden says the Xbox Series X|S is still costing the company about $150 per unit. According to the journalist, Microsoft loses that much on each console even after the planned August 2026 price increase.

Corden said he heard the same figure from Xbox: the company is still losing about $150 on every Xbox Series X|S after the upcoming price hike. That makes the hardware business look even tighter at a time when Microsoft is already dealing with weaker results across the division.

In the latest quarter, Xbox content and services revenue declined 10% year over year, while Xbox hardware revenue fell 13%. Microsoft also said Xbox revenue has now been declining for four consecutive quarters.

The company's fourth-quarter earnings release said Xbox results were partially offset by severance expense and impairment charges. At the same time, Microsoft reported that full-year Xbox revenue was down 5% from the previous year.

Satya Nadella framed the situation as a reset for the division, saying Microsoft is making the necessary decisions across content, platform, and operations to restore long-term growth and expects Xbox to return to growth in fiscal 2027.

If Xbox hardware is still losing money per unit while revenue keeps falling for a fourth straight quarter, how long can Microsoft keep this model going?