What changed
2026-07-30 04:26 UTC → 2026-07-30 04:53 UTC ·
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German indie studio Cyberwave added *Solarpunk* to Microsoft’s Xbox Game Pass at launch on 8 June 2026. Microsoft raised console prices for the third time on 26 June, citing division continues to struggle after a components crunch that more than doubled DRAM and SSD steep rise in component costs. FTC filings FY2026 Q4 results confirmed a 10% drop in early July showed Game Pass at content‑services revenue and a 13‑14% decline in hardware revenue, leaving overall Xbox revenue about 5% lower year‑on‑year. Industry analysis estimated the company now loses roughly 30 million active subscribers, far short of US $150 on every Xbox Series X or Series S sold, a margin squeeze labeled the 77 million target. “RAMpocalypse.” CEO Asha Sharma called the service “not healthy,” triggering Sharma’s “reset” plan, announced in late July, narrows the largest Xbox earlier restructuring in history – about 4,800 jobs cut, divestitures of several first‑party studios target to around 3,200 job cuts and consideration the spinoff of selling Arkane Studios. Flagship four first‑party franchises such as *Gears of War: E‑Day* and *Clockwork Revolution* were moved to Xbox exclusives, while *Halo: Campaign Evolved*, *Forza Horizon 6*, *Fable* and *Minecraft Dungeons 2* remained multi‑platform. The shortfall was linked to studios, alongside a late‑2025 planned console price increase and slower growth after of $100 or more slated for August 2026. The plan also retains the Activision Blizzard acquisition. In late July Microsoft began testing of a free, ad‑supported Xbox Cloud Gaming tier. On 28 July the company disclosed that each Xbox Series X or Series S now loses about $150 – a margin squeeze dubbed the “RAMpocalypse” – even after a planned August 2026 price hike of $100‑$150. Hardware revenue fell 13 % and content‑services revenue fell 10 % YoY in Q4 FY 2026; Despite more than 200 million new players joined but joining in FY26, revenue declined. The “reset” plan adds further layoffs, spinoffs per player fell, prompting the goal of four studios and a pivot returning to higher‑margin titles, aiming for growth in FY 2027. Microsoft’s cloud business rose 27 % to $59.3 billion, partially offsetting the Xbox drag. FY27. Project Helix is Helix, a rumored to be an open‑PC console that could console, is said to restrict third‑party storefronts such as Steam and may be priced unless a premium price above $1,000 if full‑storefront support is allowed. charged. Game Pass subscriber numbers remain well below the 77 million target, with roughly 30 million active users, and flagship franchises have been split between Xbox‑exclusive and multi‑platform releases.