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Xbox “has work to do”, but is “recommitting” to core fans following hardware revenue drop of 33% year-on-year

Player growth has “not yet met our ambition”.

Image credit: Xbox

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by Victoria Phillips Kennedy
News Reporter

Published on April 30, 2026

33 comments

Earlier today, Microsoft shared its earnings results Q3 FY2026, covering for the period between 1st January and 31st March. Microsoft’s revenue is up 18 percent, at $82.9bn, though gaming revenue fell seven percent. Xbox content and services also saw a drop of five percent year on year. Microsoft attributed this to “a prior year comparable that benefited from strong first-party performance”.

Meanwhile, Xbox hardware revenue dropped 33 percent. This follows a price rise for Xbox Series X/S consoles in the US towards the end of last year, the consoles’ second in six months. In November, Microsoft said this price increase was due to “changes in the macroeconomic environment”. Despite this, Microsoft CEO Satya Nadella said the company had “set new records for monthly Xbox active users in the quarter, as well as game streaming hours”.

A little teaser for Xbox’s Project Helix.Watch on YouTube

Writing on social media platform X, Microsoft’s newly-appointed Xbox boss Asha Sharma said “while we have made progress expanding the business and our margins

Microsoft Canada president vows ‘community-first approach’ to AI investment

Tech giant announced $19-billion investment to expand AI and cloud infrastructure in Ontario and Quebec

Ling Hui

Published Apr 08, 2026 • Last updated 1 day ago • 2 minute read

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The Microsoft logo is displayed at an event at the Chatham House think tank in London, Monday, Jan. 15, 2024. Photo by Kin Cheung /AP Photo

Microsoft said its billion-dollar investment to expand artificial intelligence infrastructure at Ontario and Quebec data centres will include a “community-first approach,” taking into account concerns from the local communities.

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In December, the tech giant had announced a $19-billion investment — the largest in Canadian history — to expand its AI and cloud infrastructure in the two provinces.

In a blog post Tuesday, Microsoft Canada president Matt Milton said the company is aware that Canadians have “real questions” about affordability, energy and water use, jobs and the impact on communities regarding its AI investment.

“At Microsoft, we believe communities should share in the benefits of AI infrastructure and they should not bear the costs,” Milton said.

Electricity costs, water usage among concerns

He said the company’s five “community-first” principles will shape how it will build and operate its data centres in Ontario and Quebec.

Among those principles he outlined was the company’s commitment to “paying our way on electricity” to ensure that its data centres don’t increase electricity prices for Canadians and put added strain on the grid.

Milton said the company will work with provinces, utilities, system operators and regulators to plan new supply in advance. He also said the company will pay the full cost of the electricity it uses, including the cost of new generation, transmission and grid upgrades.

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Milton also said that Canada’s cooler climate means the company can cool its data centres mostly using outside air, “using water for cooling less than 5% of the year.”

Thousands employed in construction process

He also said the company will work with local governments, conservation partners and research institutions on water projects.

Milton said Microsoft’s data centre investment in Canada will employ about 2,000 workers across all sites during construction with 400 Canadian businesses involved during the construction phase.

He said once its data centres are built and operational, the company will create 250 full-time jobs and hire about 400 contractors to maintain and operate its sites.

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Story continues below

In December, the tech giant had announced a $19-billion investment — the largest in Canadian history — to expand its AI and cloud infrastructure in the two provinces.

“At Microsoft, we believe communities should share in the benefits of AI infrastructure and they should not bear the costs,” Milton said.

Electricity costs, water usage among concerns

He said the company’s five “community-first” principles will shape how it will build and operate its data centres in Ontario and Quebec.

Story continues below

Milton also said that Canada’s cooler climate means the company can cool its data centres mostly using outside air, “using water for cooling less than 5% of the year.”

Thousands employed in construction process

He also said the company will work with local governments, conservation partners and research institutions on water projects.

Milton said Microsoft’s data centre investment in Canada will employ about 2,000 workers across all sites during construction with 400 Canadian businesses involved during the construction phase.

He said once its data centres are built and operational, the company will create 250 full-time jobs and hire about 400 contractors to maintain and operate its sites.

Microsoft touts $500 million AI savings while slashing jobs
Plaintiff awarded $6M in landmark social media lawsuit against Google, Meta

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Xbox “has work to do”, but is “recommitting” to core fans following hardware revenue drop of 33% year-on-year

Xbox “has work to do”, but is “recommitting” to core fans following hardware revenue drop of 33% year-on-year

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Microsoft Canada president vows ‘community-first approach’ to AI investment

Microsoft Canada president vows ‘community-first approach’ to AI investment

Microsoft Canada president vows ‘community-first approach’ to AI investment Back to video

Electricity costs, water usage among concerns

RECOMMENDED VIDEO

Thousands employed in construction process

Microsoft Canada president vows ‘community-first approach’ to AI investment Back to video

Electricity costs, water usage among concerns

RECOMMENDED VIDEO

Thousands employed in construction process

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