Microsoft released its Xbox financial report for fiscal year 2025:
•Xbox hardware sales continued to decline by 25% compared with the same period last year, which is the fourth consecutive year that hardware sales have declined.The recent price increase of Xbox has not helped reverse the decline, and the Xbox Series X is now priced at around $600
• However, the Xbox gaming software ended up being a success.Content and service revenue grew 13%, while overall game revenue grew 10%, which is a considerable increase
The software success can be attributed to the recent porting of Xbox first-party games to the PlayStation platform and the overall growth in the number of first-party games.Xbox has also recently dominated the top ten best-selling list of PlayStation, and 6 of the top ten best-selling models are Xbox games
Xbox achieved a record $23.455 billion in Microsoft's fiscal 2025 annual revenue, accounting for 95% of its revenue generated by content and services.
Xbox quarterly revenue summary chart:
Activision Blizzard + Game Pass + Recent PS5 Transfers Are the Major Drivers of Xbox Quarterly Revenue
•Monthly active users reach 500 million
• 40 Xbox games are under development
• Game Pass’s annual revenue reached nearly $5 billion for the first time, and although Microsoft did not release specific subscription data, internal employees’ resumes 2 months ago suggest that Game Pass subscribers may have reached 35 million
Game Pass will account for 21% of Xbox’s total fiscal 25 revenue ($23.45 billion) at $5 billion in annual revenue