Microsoft's Q4 fiscal year 2025 results show that Xbox content and services revenue grew 13% this quarter (12% when considering constant currency). Hardware revenue continues to decline (-22%), but overall gaming revenue is still up 10%. According to Microsoft CFO Amy Hood, the result was driven by 'better-than-expected performance from first-party content and Xbox Game Pass.'
During the subsequent investor call, Microsoft CEO Satya Nadella shared some new milestones, such as the fact that the Game Pass subscription service has nearly reached $5 billion of yearly revenue for the first time since its launch in 2017. Nadella also referenced the fact that Microsoft was the top publisher not only on Xbox but also on PlayStation this quarter. Lastly, the chief executive officer noted that Xbox has nearly 40 games in development.
When it comes to gaming, we have 500 million monthly active users across platforms and devices. And we are now the top publisher on both Xbox and PlayStation this quarter, with the successful launches of Forza Horizon 5 and Oblivion Remastered. The Call of Duty franchise has never been stronger: 50 million people have played Black Ops 6. Total hours surpassed 2 billion.
Minecraft saw record monthly active usage and revenue this quarter, thanks in large part to the success of the Minecraft movie. And we have nearly 40 games in development, so much, much more to come. We surpassed over 500 million hours of game play streamed via the cloud this year. And Game Pass annual revenue was nearly $5 billion for the first time.
Microsoft CFO Amy Hood noted, however, that Xbox revenue will likely decline in the first quarter of the next fiscal year due to a tough comparison with the previous year:
In Gaming, we expect revenue to decline in the mid to high single digits. Against a strong prior year comparable, we expect Xbox content and services revenue to decline in the mid single digits.
Xbox Game Studios is about to launch Senua's Saga: Hellblade II Enhanced on PlayStation 5, no doubt hoping to repeat the excellent results of ports like Forza Horizon 5 and Indiana Jones and the Great Circle. The remaining release schedule for the publisher's calendar year includes Gears of War: Reloaded on August 26, Double Fine's new game Keeper on October 17, Team Ninja's Ninja Gaiden 4 on October 21, and Obsidian's The Outer Worlds 2 on October 29. There's also Call of Duty: Black Ops 7, although that one is technically published by Activision, which is nevertheless owned by Xbox.
About the author: With over two decades of experience in gaming journalism, Alessio Palumbo has led the gaming vertical at Wccftech since August 2015. He started working at a young age for Italian websites like Everyeye.it, Gamestar.it, Nextgame.it, and Multiplayer.it before kickstarting the indie English-language publication Worlds Factory as its founder and Editor in Chief. In the last decade, he has coordinated the overall output of Wccftech's gaming section, managed PR relations, assigned reviews, produced daily news coverage, edited gaming content as needed, and delivered game reviews. Arguably, his trademark content is the long series of exclusive developer interviews that have been cited by Wikipedia and by the biggest news media and gaming publications. His passion for technology also makes him knowledgeable when it comes to gaming hardware and tech. His favorite genres include RPGs, MMORPGs, and action/adventure games.
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