Xbox Console Sales Drop 22%, Game Pass and First-Party Titles Drive 10% Rise in Overall Microsoft Gaming Revenue

Microsoft reported its latest 2025 quarterly earnings results Wednesday, revealing growth for Microsoft Gaming but poor sales for Xbox consoles.

The tech company’s gaming-specific sales reached $5.5 billion for the three-month period which ran April 1-June 30, up 10% from the $5 billion in the comparable 2024 quarter.

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Content and services sales increased 13%. Hardware revenue, which is made up of sales for Xbox devices, including the Xbox Series X and S consoles, was down 22% total. (For comparison, last quarter, console sales fell just 6%).

During the quarter, Xbox’s notable releases included “South of Midnight,” third-party title “Clair Obscur: Expedition 33,” “The Elder Scrolls IV: Oblivion Remastered,” “DOOM: The Dark Ages,” as well as updates for ongoing franchises including “Minecraft,” “Call of Duty,” “Diablo,” “Overwatch,” “Halo” and “World of Warcraft.”

For Microsoft overall, Wall Street forecast earnings per share (EPS) of $3.38 on $73.8 billion in revenue, according to analyst consensus data provided by LSEG. Microsoft reported diluted EPS of $3.65 on $76.4 billion in revenue.

“When it comes to gaming, we have 500 million monthly active users across platforms and devices,” Microsoft chairman and CEO Satya Nadella said on an earnings call with analysts Wednesday. “We are now the top publisher on both Xbox and PlayStation this quarter with successful launches of ‘Forza Horizon 5’ and ‘The Elder Scrolls IV: Oblivion Remastered.’ The ‘Call of Duty’ franchise has never been stronger: 50 million people have played ‘Black Ops 6,’ total hours surpassed 2 billion. ‘Minecraft’ saw record monthly active usage and revenue this quarter, thanks in large part to the success of the ‘Minecraft’ movie, and we have nearly 40 games in development. So much, much more to come. We surpassed over 500 million hours of gameplay stream via the Cloud this year, and Game Pass annual revenue was nearly $5 billion for the first time.”

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