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Microsoft Says Xbox Game Pass Reached 'Nearly $5 Billion' in Annual Revenue over the Last Year, Setting a New Record for the Service

KING COUNTY, WASHINGTON, JUL 30 – Xbox content and services revenue rose 13% driven by first-party games and Game Pass, which neared $5 billion annually, despite a 22% drop in hardware sales, Microsoft said.

  • Microsoft reported that Xbox Game Pass generated nearly $5 billion in revenue over the last year ending June 30, 2025.
  • This milestone followed sustained subscriber growth, with 34 million users confirmed in February 2024 and possible increases since then.
  • For the fiscal quarter concluding on June 30, 2025, Xbox gaming revenue increased by 10% compared to the previous year, fueled by a 13% rise in content and services revenue, despite experiencing a 22% decline in hardware sales.
  • CEO Satya Nadella noted that Microsoft’s gaming platforms collectively engage half a billion active users each month and commended the success of several key first-party game releases driving this performance.
  • The data suggests strong digital service growth amid hardware challenges and broad layoffs, indicating Microsoft's continued focus on gaming services expansion.
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XboxEra broke the news in on Wednesday, July 30, 2025.
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