Xbox Hardware Revenue Down 33% - Inside Games Roundup

Inside Games Daily delivers a candid look at Microsoft's struggling Xbox division, highlighting a 33% drop in hardware revenue for Q1 2026, exacerbated by pricing hikes and weak international demand—especially in Japan, where sales plummeted 75% year-over-year. Despite these challenges, the show notes a bright spot: record monthly active users and streaming hours, suggesting strong player engagement even if hardware sales lag. Microsoft’s leadership shakeup, including the departure of top executives and the appointment of new CEO Asha Sharma, signals a strategic pivot toward core users, affordability, and long-term growth. The episode also covers the ongoing failure of Oblivion Remastered to receive critical PC patches over a year after launch, raising concerns about Bethesda’s post-launch support. In contrast, Crimson Desert’s massive success—over 5 million copies sold—earned its developers a $2.5 million bonus, drawing national praise in South Korea. Meanwhile, Warhorse Studios teases a major new RPG, fueling speculation it could be a Lord of the Rings title, with a reveal expected soon. The episode closes with a roundup of upcoming games, including political roguelike Prime Monster and rhythm-based tactical game Wardrum.