Microsoft has revealed its Xbox revenue has risen overall, but hardware sales have decreased.
In the company’s latest earnings report for FY25 Q3 (January 2025 – March 2025), Microsoft announced gaming revenue had grown by five per cent in total, with an increase of eight per cent in Xbox content and services, like first-party titles and Xbox Game Pass.
While ‘Avowed’ released on Xbox Series X|S and PC during the quarter, Microsoft attributed this revenue boost to games like ‘Call of Duty’ and ‘Minecraft’.
On top of this, Microsoft said Xbox Game Pass subscriptions had grown significantly, but didn’t confirm the exact number of new members the service has grown by.
While Xbox has seen success in its gaming revenue, the company has struggled with its hardware, with sales for Xbox Series X|S consoles dropping by six per cent in the quarter.
Despite Xbox’s hardware slowdown, the company has given no indication it is looking to exit the console market, with Phil Spencer recently teasing a handheld device is in the works, as well as a next-gen console aiming for a 2027 release.
The next-gen Xbox – which is rumored to be called “Xbox Prime” – will reportedly be “PC in essence but with a TV-friendly shell”.
Windows Central’s Jez Corden said on ‘The Xbox Two Podcast’: “The whole idea of the next Xbox is that it’s gonna be a PC in essence but with a TV friendly shell that also has a specific set of specs in mind, so developers will be building for Windows PC in a way but in such a way that they know exactly what the specs will be, so they can optimize exactly for it.”
