Xbox Game Pass has an absolute record, but hardware has fallen again.
3Xbox and its hit song. Game Pass has an absolute record, but hardware has fallen again.
Microsoft has released its Q4 FY25 financial results, reporting $76.4 billion in revenue for the three months April-June 2025. Of that, $27.2 billion was net profit. It makes perfect sense why Microsoft had to lay off 9,000 employees in July (/s).
Anyway, we are traditionally interested in the Xbox division. It also did well, although one could add that it is a well-worn song. The Xbox Content & Services segment sales of games and subscription services did well, but hardware is constantly declining.
Overall, the Xbox division generated $5.53 billion in revenue in the three months, a 10% year-over-year increase and an all-time record for Q4. Xbox Content & Services segment recorded revenue of $5.26 billion (+13% YoY), while hardware accounted for $270 million (-22% YoY).