Microsoft FY25 Q2 Earnings Reveal Xbox Revenue Decline and Game Pass Growth
Q2 earnings reveal a decline in Xbox hardware revenue, while content and services revenue has increased. The company posted its latest earnings report on Wednesday, January 29, 2025. Xbox FY25 Q2 earnings in brief: Microsoft Gaming revenue declined 7% (down 8% in constant currency) Xbox hardware revenue down 29% Xbox content and service revenue up 2% Xbox Cloud Gaming logged 140 million hours of engagement PC Game Pass subscriptions are up 30% Compared to the last quarter,
Xbox Q2 FY25 gaming revenue is down 7% year-over-year, but Xbox Game Pass still grew
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 Revenue Achieves New Quarterly Record and Grows PC Subscribers by 30%
Xbox Game Pass set a new quarterly record for revenue while also growing its PC subscriber base by over 30%. Satya Nadella, Microsoft's CEO, touted the success of Black Ops 6, the most recent entry in the Call of Duty series, as well as Indiana Jones and the Great Circle, which has already been played by over 4 million people.
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Microsoft reveals record quarter for Game Pass amidst declining Xbox hardware sales
Xbox Game Pass posted a record revenue in Q2 of FY2025 thanks to Call of Duty and Indiana Jones, but Xbox console sales continue to dive.
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