The latest Microsoft revenue report has revealed that Xbox revenue has climbed while its hardware sales continue to dwindle.
Microsoft’s latest earnings report for FY25 Q3 (January 2025 – March 2025) has revealed that gaming revenue for Microsoft has increased 5% in total, with a significant growth of 8% due to Xbox content and services.
However, Xbox hardware revenue continues to drop, with a decline of 6%, a drop that the company said to expect last year.
It should be worth noting that the services and revenue climb of 8% is strong, but Microsoft is yet to reveal any numbers on Game Pass subscribers. It’s revenue increase is also thanks to Xbox’s new multi-platform strategy, which recently saw the likes of Indiana Jones and the Great Circle and Forza Horizon 5 hit the PlayStation 5 this quarter.
According to various rumors, Microsoft is set to continue and get bolder with this multiplatform strategy moving forward with its titles, including noticeable releases on the Nintendo Switch 2.
As for what’s next for Xbox hardware remains to be seen, but rumors have suggested that the console could be another 2-console strategy, with a mainline console and handheld version.
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You can read Microsoft’s full earnings report here.
What do you think of Xbox’s latest revenues? Are you excited for the future of Xbox? Let us know down below, and join the discussion in the official Insider Gaming forums.
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Tom Henderson is Insider Gaming's Co-Founder and Editor-In-Chief. When he's not running one of the industry's leading independent video game websites, he's probably playing an FPS like Call of Duty,…
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