By While hardware earnings drop by 6%
Today, Microsoft unveiled its latest earnings report for the quarter that concluded on March 31st, 2025, revealing a familiar trend for Xbox revenue – growth in content and services, but a decline in hardware.
In particular, Microsoft reports that Xbox content and services revenue has surged by 8% year-over-year, “fueled by increases in Xbox Game Pass, Call of Duty, and Minecraft“. This is classified as a “business highlight” by the company.
Hardware revenue has decreased by 6%, which aligns with expectations given the apparent struggles in console sales over the past year. However, this decline is considerably smaller than that observed in FY25 Q2, where it plummeted by an astonishing 29%.
On a broader scale, Microsoft cites “gaming revenue” as having risen by 5% year-over-year during the last quarter. Evidently, this marks the most successful Q3 in history from an Xbox gaming revenue standpoint, as highlighted in the tweets below:
Microsoft’s CEO, Satya Nadella, has been vocal about Xbox’s achievements in an earnings conference this afternoon, listing milestones like a 45% annual increase in PC Game Pass subscribers, Xbox Cloud Gaming amassing 150 million hours of gameplay this quarter, and Xbox finishing the quarter as the leading publisher on both Xbox and PlayStation consoles for pre-orders and pre-installs.
While the hardware side is not optimistic, other aspects seem to be thriving for Xbox at this moment, and Nadella appears assured that content and services revenue will keep rising in the future.
This bodes well for the upcoming earnings report, as it will showcase the success of titles like DOOM: The Dark Ages, South of Midnight, and Oblivion Remastered for Microsoft – alongside the recent PS5 launches of Indiana Jones and the Great Circle and Forza Horizon 5!
What are your thoughts on this news? Share your opinions in the comments section below.
Please be aware that some external links on this page are affiliate links, meaning if you click them and proceed with a purchase, we may earn a small commission. Please review our FTC Disclosure for further details.
[source view.officeapps.live.com]
Fraser serves as the News Editor at Pure Xbox, dedicating time to report on the most significant developments in the realm of Xbox and more.