(Ina Fassbender/Getty Images)
Microsoft said gaming revenue fell by $380 million in the quarter.
Xbox continues to perform poorly, with Microsoft on Wednesday reporting a 33% plunge in console sales in its fiscal third quarter.
Gaming revenue overall dropped 7%, or $380 million, in the quarter, and Xbox content and services revenue — which includes Game Pass, digital game sales, and downloadable content — fell 5%.
While the company said it “set new records for monthly Xbox active users in the quarter,” new Xbox chief Asha Sharma said growth hasn’t matched ambition.
Xbox earnings today. While we have made progress expanding the business and our margins, player and revenue growth has not yet met our ambition. We know we have work to do to earn every player today and into the future.
— Asha (@asha_shar) April 29, 2026
The outlook isn’t great, either, with Microsoft guiding for Xbox content and services revenue to “decline in the low-teens” in Q4, reflecting the company’s recent $7 Game Pass price drop. Hardware revenue is also expected to decline.
Wednesday’s results put Microsoft’s nine-month gaming revenue loss at $1.12 billion, with Xbox console revenue down 31% despite a 30% price hike for the console in 2025.
Xbox has fallen significantly behind rivals Sony and Nintendo over the past two console generations. In November, Xbox was even outsold by the motion-controlled Nex Playground console.
Xbox’s new leadership is hoping to turn these results around. In a memo to staff last week, Sharma and Xbox Chief Content Officer Matt Booty acknowledged that players are frustrated and pricing has been hard to keep up with. The pair highlighted the path ahead, with a focus on Project Helix (the next Xbox console), expansion into China and mobile-first markets, and strengthening the economics of Game Pass.
There currently isn’t any US-specific requirement for those lower tariff rates, but in order to receive preferential tariffs, vehicles are must contain at least 75% regional content (components made in North America). Per Reuters reporting, the Trump admin is seeking to raise the regional requirement to 82%.
These reported plans are subject to change as the US negotiates USMCA terms with Mexico over the next few months.
Overall, Tesla will likely have the easiest time qualifying for any stricter requirements. The automaker’s vehicles contained the highest amount of US/Canadian content in 2025, according to American University research. Ford, GM, and Stellantis all scored lower.
Notably: the underlying government data that many domestic content measurements rely on intentionally combines US and Canadian components, so it’s difficult to know exactly how much of any given vehicle is specifically US-made.
There currently isn’t any US-specific requirement for those lower tariff rates, but in order to receive preferential tariffs, vehicles are must contain at least 75% regional content (components made in North America). Per Reuters reporting, the Trump admin is seeking to raise the regional requirement to 82%.
These reported plans are subject to change as the US negotiates USMCA terms with Mexico over the next few months.
Overall, Tesla will likely have the easiest time qualifying for any stricter requirements. The automaker’s vehicles contained the highest amount of US/Canadian content in 2025, according to American University research. Ford, GM, and Stellantis all scored lower.
Notably: the underlying government data that many domestic content measurements rely on intentionally combines US and Canadian components, so it’s difficult to know exactly how much of any given vehicle is specifically US-made.
The $640,000 Luce makes the average Ferrari look like a bargain
Put aside the shape; put aside the smoothing out of Ferrari’s iconic sharp edges; put aside, even, the calls from former Chairman and President Luca Cordero di Montezemolo to “take the Prancing Horse off.” On the grounds of price alone, Luce detractors might have a point.
By now, many of us will have read the criticisms of Ferrari’s first fully electric vehicle, as the Luce — which was unveiled to the world earlier this week and promptly saw the company’s shares crash out in New York and Milan — gets subtly shaded by competitors online and not-so-subtly shaded by basically everyone else.
What makes all of this worse for Ferrari is that, even by the luxury car maker’s notoriously high standards, they’ve slapped a pretty hefty price tag on the Luce, and the company’s CEO, Benedetto Vigna, has already been forced to defend the €550,000 ($640,000) price point, saying yesterday that it’s “fair to pay for innovation,” per Reuters.
While Ferrari’s cars have been getting more expensive of late, as recently as 2022, Ferrari’s average revenue per car sold was around $340,000. At nearly twice that price, this new electric model is obviously proving a little much (visually, conceptually, and financially) for many loyal and long-standing fans of the Prancing Horse to stomach.
Sherwood News
By now, many of us will have read the criticisms of Ferrari’s first fully electric vehicle, as the Luce — which was unveiled to the world earlier this week and promptly saw the company’s shares crash out in New York and Milan — gets subtly shaded by competitors online and not-so-subtly shaded by basically everyone else.
What makes all of this worse for Ferrari is that, even by the luxury car maker’s notoriously high standards, they’ve slapped a pretty hefty price tag on the Luce, and the company’s CEO, Benedetto Vigna, has already been forced to defend the €550,000 ($640,000) price point, saying yesterday that it’s “fair to pay for innovation,” per Reuters.
While Ferrari’s cars have been getting more expensive of late, as recently as 2022, Ferrari’s average revenue per car sold was around $340,000. At nearly twice that price, this new electric model is obviously proving a little much (visually, conceptually, and financially) for many loyal and long-standing fans of the Prancing Horse to stomach.
Sherwood News
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