Xbox Achieves Record-Breaking Results In Latest Earnings Report

Although hardware revenue declines by 6%

Microsoft has released its latest earnings report for the quarter that ended March 31st, 2025 today, and it’s very much the same story as last time when it comes to Xbox revenue – content and services is up, but hardware is down.

Specifically, Microsoft says that Xbox content and services revenue has grown by 8% compared to this time last year, “driven by growth in Xbox Game Pass, Call of Duty and Minecraft”. The company lists this as a “business highlight”.

Hardware revenue is down by 6%, which is to be expected considering console sales have seemingly been pretty rough over the past year, but it’s nowhere near as big as a decline as in FY25 Q2 – when it was a whopping 29%.

Microsoft lists “gaming revenue” as a whole as having grown by 5% YoY in the past quarter. Apparently, this represents the best Q3 in history from an Xbox gaming revenue perspective, as referenced in the tweets down below:

Microsoft CEO Satya Nadella has also been bigging up the success of Xbox in an earnings call this afternoon, reeling off highlights like a 45% increase in PC Game Pass subscribers year-on-year, Xbox Cloud Gaming reaching 150 million hours of playtime in the quarter, and Xbox ending the quarter as the top publisher on both Xbox and PlayStation consoles for pre-orders and pre-installs.

Obviously the hardware side of things isn’t great news, but everything else appears to be looking positive for Xbox as things stand, and Nadella seems confident that content and services revenue will continue to increase in the future.

That’s going to make the next earnings report very interesting, as we’ll get to see how much success the likes of DOOM: The Dark Ages, South of Midnight and Oblivion Remastered have brought Microsoft – not to mention Indiana Jones and the Great Circle and Forza Horizon 5’s recent PS5 launches!

What do you make of this news? Let us know down in the comments section below.

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[source view.officeapps.live.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.

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