Update [Wed 30th Jul 2025, 11:03pm]:
In a follow-up conference call, Microsoft CEO Satya Nadella added a few other stats:
Satya Nadella on Xbox:
• 500 million monthly active users across platforms and devices
• “We are now the top publisher on both Xbox and PlayStation this quarter.”
• “Game Pass annual revenue was nearly $5 billion for the first time.”https://t.co/zHYFkRNo54
— Tom Warren (@tomwarren) July 30, 2025
Original Story: Microsoft has revealed its earning report for the quarter ended June 30, 2025, and it’s a familiar story for anyone who’s been following these reports in recent times – Xbox content and services revenue is up, but hardware revenue is down.
Specifically, the company mentions its 13% increase in Xbox content and services revenue as a “business highlight”, stating that it’s “driven by growth in first-party content and Xbox Game Pass”. The 13% figure relates to a year-on-year increase, meaning it’s 13% better than the corresponding period of last fiscal year.
“Xbox content and services revenue increased 13% (up 12% in constant currency)”
Of course, this isn’t just based on Xbox console and PC games – Microsoft has enjoyed huge success on PS5 as well:
Meanwhile, hardware revenue is down 22% year-on-year, which is no surprise considering the dwindling number of Xbox console sales these days – especially considering the price increases that were announced back in early May.
This all results in Microsoft’s gaming revenue growing by 10% YoY.
“Gaming revenue grew 10%”
“Xbox hardware revenue declined 22%”
Ultimately, there’s nothing too crazy to take away from these latest results at first glance, and we’re more interested to see how the hardware percentage is affected once the Xbox ROG Ally has been released in a few months’ time.
But what about you? What’s your takeaway here? Let us know down in the comments section below.
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[source microsoft.com]
Fraser is the News Editor at Pure Xbox, where he spends his time reporting on the biggest stories in the world of Xbox and beyond.