Microsoft’s Q4 financials are out, and Xbox improved 13% year over year in the ever-important content and services revenue.
The financials for Microsoft have hit, and the first bit of news for Xbox fans is that the division is up 13% in content and services revenue.
According to Microsoft’s slides:
- Gaming Revenue grew 10%
- Xbox content and services revenue grew 13% (up 12% CC) driven by growth in first-party content and Game Pass
- Xbox hardware revenue declined 22%
As noted by the excellent Stephen Totillo on Bluesky:
- Gaming revenue increased $2.0 billion or 9% driven by growth in Xbox content and services, offset in part by a decline in Xbox hardware. Xbox content and services revenue increased 16% driven by the impact of the Activision Blizzard acquisition and Xbox Game Pass. Xbox hardware revenue decreased 25% driven by lower volume of consoles sold.
- Xbox earned 23.455 billion USD in FY25, compared to 21.503 billion USD in FY24
It has been a trying time for some fans of the Xbox platform. The company has shifted to a multiplatform approach across a large number of its new titles. The numbers above show the same pattern: more money made than ever, though less of it from hardware.
This comes a short time after Microsoft decided to lay off over 9000 employees, including a rumored 1000 or so within the Microsoft Gaming division. The company’s future in gaming is rumored to include multiple PC storefronts in its ecosystem, alongside its own.
With gaming being seen as a mature industry, one where growth will need to come from new thoughts, the strategy makes sense. For now, Xbox is seemingly reaping the rewards of its content shift, as it dominates the sales chart on the PlayStation platform in the United States.
Keep an eye on this space as we will update the article with any news from the upcoming earnings call, which will take place at 2:30 PM PT between Microsoft executives and their shareholders.
Here are some quick hitters on what Satya had to say about Xbox
- Top publisher on Xbox and PlayStation for Q4 2025
- 50 million cod blops 6 players with 2 billion hours played
- 500 million hours on cloud in a year
- Game Pass annual revenue was nearly 5 billion
- Minecraft had its biggest quarter ever
Amy Hood has given guidance of a drop in Xbox revenue by mid-single digits for Q1 FY26
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