Recent sales figures for Black Ops 7 have contributed to declining software revenue at Xbox, prompting new leadership to signal upcoming changes. Executives have linked the results to broader platform challenges following the Activision Blizzard acquisition.
Microsoft closed its $70 billion acquisition of Activision Blizzard near the end of 2023. Black Ops 7, released in 2025, underperformed compared to Black Ops 6 from 2024, with the game failing to reach the top 10 best sellers in the U.S. during April 2026.
Xbox software and services revenue fell 5 percent in both the second and third quarters. Microsoft CFO Amy Hood attributed the drop to lower Call of Duty sales. Adding the title to Game Pass at launch led to a price increase to $30 and millions of subscriber losses, according to Xbox chief strategist Matthew Ball.
New Xbox CEO Asha Sharma outlined a platform reset in recent staff memos, noting slowed growth after pricing changes and the need to reassess funding for major franchises over the next five years. Modern Warfare 4 is scheduled for release later in 2026 amid competition from Grand Theft Auto 6 in November.
