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Microsoft becomes PlayStation's top publisher and annual Xbox Game Pass revenue nears $5 billion
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'We have nearly 40 games in development, so much, much more to come.'
Xbox hardware revenue decreased by 25 percent during fiscal year ended June 30, 2025, but Microsoft has indicated there is cause for optimism after it became the top publisher on PlayStation during Q4.
The U.S. tech giant's latest fiscal results confirm Xbox hardware sales are in decline, although annual gaming revenue increased by 9 percent year-on-year to $23.5 billion. Annual Xbox content and services revenue increased 16 percent year-on-year, driven by the impact of the company's massive Activision Blizzard merger.
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Xbox Console Sales Drop 22%, Game Pass and First-Party Titles Drive 10% Rise in Overall Microsoft Gaming Revenue
Microsoft reported its latest 2025 quarterly earnings results Wednesday, revealing growth for Microsoft Gaming but poor sales for Xbox consoles.
The tech company’s gaming-specific sales reached $5.5 billion for the three-month period which ran April 1-June 30, up 10% from the $5 billion in the comparable 2024 quarter.
Content and services sales increased 13%. Hardware revenue, which is made up of sales for Xbox devices, including the Xbox Series X and S consoles, was down 22% total. (For comparison, last quarter, console sales fell just 6%).
During the quarter, Xbox’s notable releases included “South of Midnight,” third-party title “Clair Obscur: Expedition 33,” “The Elder Scrolls IV: Oblivion Remastered,” “DOOM: The Dark Ages,” as well as updates for ongoing franchises including “Minecraft,” “Call of Duty,” “Diablo,” “Overwatch,” “Halo” and “World of Warcraft.”
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