• Gaming
  • Simulation
  • Esports
  • Entertainment
  • Technology
Simulation Daily
No Result
View All Result
Sign up for Our Newsletter
Simulation Daily
  • Gaming
  • Simulation
  • Esports
  • Entertainment
  • Technology
No Result
View All Result
Simulation Daily

Microsoft Gaming Revenue Declines 7%, Xbox Hardware Down 29% Year-on-Year

Giuseppe Nelvaby Giuseppe Nelva
January 29, 2025
in News
Reading Time: 2 mins read
Xbox Logo
ShareTweetShare

Today Microsoft announced its financial results for Q2 of fiscal year 2025, related to the period between October and December 2024, including an update on its gaming business.

You might also like

Vein Details Massive Early Access Map Size, New Zombie Noises, & More

Crusader Kings 3 All Under Heaven Expansion Release Date Revealed

Farming Simulator: Signature Edition Release Date Announced

It’s worth mentioning before we dive into the results, that for the past four quarters, we saw big differential growth percentages from Microsoft, as figures after the acquisition of Activision, Blizzard, and King were compared to figures before the acquisition.

This is the first time following the acquisition that we get an apples-to-apples comparison, as Q2 of the previous fiscal year also included revenue from the acquired companies.

According to the financial documents related to the More Personal Computing Business, which includes the gaming business, and the form 10Q, overall gaming revenue was $6,581 million and declined 7%, year-on-year (from $7,111 million),

Xbox content and services revenue increased 2% year-on-year driven by growth in Xbox Game Pass. Yet, that was not enough to compensate for a massive drop in hardware revenue, which dropped a whopping 29% year-on-year due to lower volume of consoles sold.

This is actually pretty much precisely in line with Microsoft’s guidance expressed by Chief Financial Officer Amy Hood in October. She mentioned that gaming revenue was expected to decline in the high single-digits (between 5% and 9%) due to the Xbox hardware business, while content and Services revenue was expected to be relatively flat.

While (as usual) Microsoft did not share data on operating income for its gaming business specifically, we hear that the gross margin for the More Personal Computing Business (which includes gaming, as mentioned above) increased by 13% “driven by growth in Gaming.”

We can also take a look at the performance of Microsoft as a whole, with revenue up 12% year-on-year and operating income up 17% year-on-year.

If you’re interested in comparing today’s results with historical data, you can check out our article about the previous quarter’s financial results, announced in October.

Other companies have also already announced their financials this quarter, including Koei Tecmo and Capcom.

Related Posts

Xbox AMD Partnership

Microsoft Teases “Next Generation of Xbox” in Partnership With AMD

June 17, 2025
Farming Simulator Content Update 3 key image

Farming Simulator 25 Free Content Update 3 Released

September 2, 2025
EA Sports FC 25

EA Sports FC 25 IQ Deep Dive Details a Renewed Emphasis on Tactics

August 21, 2024

Browse by Category

  • Editorials
  • Events
  • Guides
  • Interviews
  • News
  • Previews
Tags: Businessfinancial resultsFinancialsGamingIndustryMicrosoftPCXboxXbox Series X|S
ShareTweetShare

Recommended For You

Massive Vein 0.021 Update Adds New Zombie Behavior, Improved Performance, & More
News

Vein Details Massive Early Access Map Size, New Zombie Noises, & More

October 8, 2025
Crusader Kings 3 All Under Heaven key art
News

Crusader Kings 3 All Under Heaven Expansion Release Date Revealed

October 8, 2025
Farming Simulator Signature Edition farming
News

Farming Simulator: Signature Edition Release Date Announced

October 8, 2025
Microsoft Flight Sikmulator 757
News

Today in Flight Simulation News – October 7, 2025

October 8, 2025
American Truck Simulator South Dakota Towns
News

American Truck Simulator Shows the Towns of South Dakota DLC

October 7, 2025
Starfinder: Afterlight Has Already Raised 3x Its Original $87,000 Kickstarter Goal On Day 1
News

Starfinder: Afterlight Has Already Raised 3x Its Original $87,000 Kickstarter Goal On Day 1

October 7, 2025

Next Post
Satya Nadella and Xbox Logo

Microsoft CEO Boasts Game Pass & Xbox Cloud Gaming Records, 4 Million Players for Indiana Jones

Simulation Daily Powered by Orbx

Navigate Site

  • About Simulation Daily
  • Our Staff
  • Ethics
  • Contact Us
  • Advertise With US
  • Gaming
  • Simulation
  • Esports
  • Entertainment
  • Technology
  • Disclaimer and Privacy Policy

Follow Us

© 2025 Orbx Ltd

No Result
View All Result
  • Home
  • Gaming
  • Simulation
  • Technology
  • Esports
  • Entertainment
  • About Simulation Daily
  • Our Staff
  • Ethics
  • Contact Us
  • Subscribe to our Newsletter

© 2024 Orbx Ltd

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?