Xbox Game Pass made record revenues throughout Holiday 2024, indicating the subscription service generated in excess of $1 billion--the previous record.

Microsoft financial results are in, with Xbox Q2 2025 gaming revenue down 7%, while Xbox Game Pass saw growth.

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. The decline in hardware revenue was not unexpected.

Microsoft CEO Satya Nadella gives an update on the state of the Xbox business, saying that releasing games like Black Ops 6 on Game Pass is paying of.

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."