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Microsoft Gaming Revenue Grows 10% Year-on-Year, Content and Services Up 13%, Xbox Hardware Down 22%

Giuseppe Nelvaby Giuseppe Nelva
July 30, 2025
in News
Reading Time: 2 mins read
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Today, Microsoft announced its financial results for Q4 of fiscal year 2025, related to the period between April and June 2025, including an update on its gaming business.

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According to the documents provided by the company, overall gaming revenue grew 10% year-on-year.

Xbox content and services revenue grew 13% year-on-year, driven by growth in first-party games and Xbox Game Pass.

On the other hand, Xbox hardware revenue declined 22%.

This is actually better than the forecast provided by CFO Amy Hood three months ago. She expected growth for the overall gaming business in the mid-single digits, while the Xbox Content and Services segment was expected to grow in the high single digits.

It’s worth mentioning, as usual, that the results of Microsoft’s Gaming business are now merged with Activision Blizzard‘s. That being said, the comparison is now apples to apples, since the acquisition was finalized over a year ago.

Looking at the full fiscal year (between July 2024 and June 2025), the revenue for the gaming business was $23.455 billion, marking significant growth over the $21.503 billion reported in the previous fiscal year (up 9% year-on-year).

Xbox content and services revenue increased 16% year-on-year driven by the impact of the Activision Blizzard acquisition and growth in Game Pass.

Xbox hardware revenue dropped 25% year-on-year due to the lower volume of consoles sold.

Looking at Microsoft as a whole company, revenue grew 18% year-on-year, and operating income grew 23% year-on-year.

If you’re interested in comparing the results announced today with historical data, you can read our article dedicated to the previous quarter’s financial results, announced in April.

Other gaming companies have also already announced their financial results this quarter, including Koei Tecmo, Ubisoft, Krafton, Electronic Arts, and Capcom.

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