Microsoft’s Q2 2025 (October – December 2024) has revealed Xbox’s gaming revenue declined, but saw slight growth in via game pass.
Cut to the Chase
Xbox’s key points for Q2 2025 are:
- Gaming revenue declined 7% (down 8% CC)
- Xbox content and services revenue grew 2% driven by growth in Xbox Game Pass
- Xbox hardware revenue declined 29%
What Does it Mean?
It’s always hard to judge the long term effects of quarterly financials as they don’t paint a broader picture of the company as a whole. On first impressions, Xbox content and services revenue growth by 2% seems like a good indicator for Xbox Game Pass, but during the months in which the hotly anticipated Call of Duty: Black Ops 6 released, I would have expected a little more movement. However, its growth matches Microsoft’s guidance at 2%
Xbox’s revenue decline is something that we should hopefully see changed in the coming months, as Xbox’s new strategy is to release its games across more platforms and thus, increase revenues. But again, it’s somewhat surprising considering a big quarter with Call of Duty.
Xbox’s hardware revenue decline shows a sharp decrease at 29%, which is frankly a shocking statistic during the holiday period. For context, Xbox hardware grew by 3% during the same quarter last year. That being said, Xbox’s new focus on the cloud will undoubtedly have an negative impact on hardware sales.
Would you this of Xbox’s financial results for Q2 2025? Let us know in the comments below or on our community forum!
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