Microsoft CEO Says Xbox Is ‘Recommitting To Our Core Fans’ As Revenue Falls In FY26 Q3

In a follow-up to these results, Microsoft CEO Satya Nadella insisted that Xbox is “recommitting to our core fans” and “shaping the future of play” with its new leadership, which includes being “responsive to customer feedback”.

Here’s a bit of what he had to say (thanks to Tom Warren of The Verge for the transcript):

“And you also see this in Xbox, where the team is recommitting to our core fans and players and shaping the future of play. Last week’s Game Pass changes are one example of how we are staying responsive to customer feedback.”

In addition, Nadella mentioned how Microsoft “set new records for monthly Xbox active users in the quarter, as well as game streaming hours” in FY26 Q3, despite the declines in revenue.

It’s easy to jump to conclusions about all of this, but to be honest we’re not reading much into any of today’s results — we always expected these declines, and we’re more interested to see how Asha Sharma’s new strategy fares in the long run rather than the short term. In a year’s time, how will these results look? That’s the big question.