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Microsoft CEO Announces Xbox Revenue Growth of 13%, Game Pass Nears $5 Billion Annually

Xbox Revenue Grew 13% This Quarter as Microsoft CEO Boasts Game Pass Yearly Revenue of Almost $5 Billion

Microsoft’s latest FY2025 Q4 earnings report reveals a 13% year-over-year increase in Xbox content and services revenue (adjusted to 12% for currency fluctuations). While hardware sales dropped by 22%, the gaming division overall saw a 10% revenue boost. CFO Amy Hood attributed this growth to “stronger-than-anticipated results from first-party titles and Xbox Game Pass subscriptions.”

In an investor briefing, CEO Satya Nadella highlighted key achievements, including Xbox Game Pass nearing $5 billion in annual revenue—a first for the service since its 2017 debut. He also noted Microsoft’s dual dominance as the top publisher on both Xbox and PlayStation platforms this quarter. Additionally, Nadella confirmed over 40 titles currently in production across Xbox studios.

Our gaming ecosystem now reaches 500 million monthly active users across all devices. This quarter, we became the leading publisher on PlayStation as well as Xbox, driven by hits like Forza Horizon 5 and the Oblivion Remastered release. Call of Duty continues to break records: Black Ops 6 has attracted 50 million players, with total gameplay exceeding 2 billion hours.

Minecraft achieved new peaks in monthly users and revenue, bolstered by its blockbuster cinematic adaptation. With nearly 40 projects underway, our development pipeline remains robust. Cloud gaming engagement hit 500 million hours this year, while Game Pass revenue stands at the cusp of $5 billion annually.

CFO Hood cautioned that gaming revenue may see mid-to-high single-digit declines next quarter due to challenging year-on-year comparisons:

We anticipate a mid single-digit decrease in Xbox content/services revenue for the upcoming quarter, reflecting the strong performance of prior-year releases.

Xbox’s upcoming slate includes the PlayStation 5 edition of Senua’s Saga: Hellblade II Enhanced, aiming to replicate the success of recent multiplatform launches. Notable releases through October include Gears of War: Reloaded (August 26), Double Fine’s Keeper (October 17), Team Ninja’s Ninja Gaiden 4 (October 21), and Obsidian’s The Outer Worlds 2 (October 29). Activision’s Call of Duty: Black Ops 7 also joins the Xbox-published lineup this fall.