The ray of sunshine that glowed above Xbox earlier this year has all but dissipated after its cost-cutting, job-ending ‘Reset.’ But positive tidings may not come until 2027, according to Microsoft’s leadership. Nobody tell Xbox that next year may be an even worse time for gaming hardware and the people who make it. Here are the numbers according to the latest financials: Microsoft’s More Personal Computing revenue, which includes Xbox, hit $12.9 million in revenue, down 4% year-over-year. That’s partially due to Surface devices seeing sales declines, but Xbox has also proved a major driver of losses over the past few years. Overall Xbox revenue was down 7%, or $1.7 billion, driven by “Xbox content and services and Xbox hardware.” On the software side, content and services were down 10% compared to last year, mostly because Xbox had more hits in its last fiscal year, which ends in June. Meanwhile, Xbox hardware revenue was down 29%. That may not be as bad as some analysts expected, but it’s consistent with Xbox hardware revenue declines over the past year. Fewer people are buying consoles, not the least because each device is now way more expensive than it was at launch in 2020—thanks to memory prices driven by the demand for AI hyperscalers.