Microsoft’s cloud and AI businesses are doing pretty well — and their impact is being felt across the company. In its Q2 2025 earnings, Microsoft announced revenue of $69.6 billion for the quarter, up 12 percent year-over-year,
Doom, Ninja Gaiden and more are soon landing on the service on day of release, showing how integral Game Pass is to the business.
Microsoft pulls in over $6.58 billion in revenue from its Xbox games division throughout Holiday 2024, driven primarily by software and services growth.
Microsoft shared details on the company's financial results for Q2 FY25 on Wednesday, revealing that gaming revenue was down 7% year-over-year for the quarter ending Dec. 31, 2025. The quarter did see Xbox content and services revenue up 2%, to which the company credits growth in Xbox Game Pass. Xbox hardware revenue declined 29% year-over-year.
Xbox Game Pass made record revenues throughout Holiday 2024, indicating the subscription service generated in excess of $1 billion--the previous record.
Microsoft's latest earnings report shows that Game Pass has rocketed skyward. Satya Nadella, CEO of Microsoft, announced the news during the report's webcast: "All up, Game Pass set a new quarterly record for revenue and grew its PC subscriber base by over 30% as we focus on driving fully paid subscribers."
Xbox hardware revenue has fallen 29 percent year over year compared to Q2 2024. Microsoft (MSFT) announced the decline in its Q2 2025 earnings report released on January 29, 2025.
The 1TB Xbox Series S console is not on sale, nor are any versions of the Xbox Series X consoles. Other retailers appear to be matching Microsoft's offer, as Amazon and Walmart are selling the same console for the same price.
There's still no release date for Nintendo's Switch 2 console and the launch lineup is a mystery, but one thing has been revealed: gamers can expect Xbox games to become available for it at some point.
Black Ops 6 enjoyed a record breaking launch quarter as it topped software sales on both Xbox and PlayStation, according to Microsoft. The latest entry in Activision ’s shooter series was released on October 25, 2024, for Xbox Series X/S, Xbox One, PS5, PS4 and PC. Notably, it was also the first Call of Duty to be available on Game Pass on day one.
Data firm Ampere has released some interesting stats about the month of December in gaming - stats that name Microsoft as the top publisher in the world for the final month of 2024. According to the analyst group, $465 million was spent on Xbox games last month, making Microsoft the biggest publisher across Xbox, PlayStation and PC.