Xbox Revenue Grew 5% In First 3 Months Of 2025, Hardware Revenue Drops 6%

“Xbox Revenue Grew 5% in First 3 Months of 2025, Hardware Revenue Drops 6%”

by
William D’Angelo
, posted 1 day in the past / 4,006 Views

Microsoft has released its earnings report for the second quarter of the 2025 fiscal yr, which ended up March 31, 2025.

Xbox gaming income elevated by 5 p.c year-on-year to $5.72 billion. That is barely higher than the forecast, which anticipated progress within the low single digits p.c.

Xbox content material & providers income elevated eight p.c in comparison with the identical quarter a yr in the past, pushed by progress in Xbox Recreation Move, Name of Responsibility, and Minecraft. That is barely higher than the forecast, which anticipated progress within the low to mid single digits p.c.

Xbox {hardware} income dropped six p.c year-on-year. That is inline with expectations, which was to see a decline year-on-year.

General, Microsoft reported for the quarter income was up 13 p.c year-over-year to $70.1 billion, working revenue elevated 16 p.c to $32.0 billion, and web revenue was up 18 p.c to $25.8 billion.

“We continue to transform the business and focus on margin expansion as we bring our games to over 500 million monthly active users across devices,” stated Microsoft CEO Satya Nadella. “We ended the quarter as the highest writer by pre-orders and pre-installs on each Xbox and PlayStation retailer.

“PC Recreation Move income elevated over 45 p.c year-over-year. With Xbox Play Wherever gamers can now entry greater than 1,000 video games they will play throughout console and PC. And simply final week we brough cloud gaming to LGTVs. Cloud gaming set a brand new file surpassing 150 million hours performed for the primary time this quarter.

“We’re additionally integrating AI throughout the Xbox. New Copilot for gaming is a customized gaming companion that gives in recreation help and knowledgeable teaching. And our first of its form mannequin can generate gameplay in actual time.

“Finally, it is fantastic to see the success of the Minecraft movie, which is the top grossing film of the year. In addition to monetizing our IP in new ways, we are seeing a 75 percent plus increase in weekly active users of the game year-over-year since the release.”

Microsoft’s forecast for the quarter ending June 30, 2025 expects whole Xbox income to develop within the mid single digits p.c year-on-year. Xbox content material & providers is anticipated to develop within the excessive single digits p.c pushed by first-party content material. No forecast was given for Xbox {hardware}.

A life-long and avid gamer, William D’Angelo was first launched to VGChartz in 2007. After years of supporting the positioning, he was introduced on in 2010 as a junior analyst, working his means as much as lead analyst in 2012 and taking on the {hardware} estimates in 2017. He has expanded his involvement within the gaming group by producing content material on his personal YouTube channel and Twitch channel. You may contact the creator on Bluesky.