Revenue from Xbox content and services has increased by 13% compared to the previous year
Microsoft's fiscal year 2025 concluded with a robust Q4, reflecting substantial increases in both gaming revenue and Xbox content and services. The tech giant reported notable financial success during this period.
Financial Performance
Covering the fiscal period of the last three months up to June 30, 2025:
- Total Revenue: $76.4 billion, marking an 18% rise from the previous year
- Net Income: $27.2 billion, increasing 24% compared to the prior year
- Revenue from More Personal Computing (including Xbox): $13.5 billion, a 9% increase year-over-year
Significant Achievements
CEO Satya Nadella characterized the year as a record-setting one during an earnings call. A significant driver of this was the performance of Microsoft's cloud segment, which climbed to $46.7 billion, growing 27% year over year, with a 25% increase when adjusted for constant currency, according to Amy Hood, the company's executive vice president and CFO.
Within its cloud offerings, Microsoft Fabric has emerged as the company's fastest-expanding data platform, with a year-over-year revenue surge of 55%. Gaming revenue increased by 10% and Xbox content and services saw a 13% uptick, mainly due to first-party content and the Xbox Game Pass exceeding expectations, as stated by Hood.
Nadella disclosed that Microsoft claimed the top publisher spot on Xbox and PlayStation over the quarter. This success was driven by releases like Forza Horizon 5 and Oblivion Remastered on PlayStation 5.
In recent updates, it was reported that Microsoft published six of the ten top-selling games on PlayStation for Q2 2025. The list includes high-ranking titles such as Indiana Jones and the Great Circle, Minecraft, Doom: The Dark Ages, Call of Duty: Black Ops 6, Forza Horizon 5, and Oblivion Remastered.
Nadella noted 50 million players engaged with Call of Duty: Black Ops 6, with over two billion hours of gameplay. Additionally, the premier of A Minecraft Movie in April led to peak levels of user activity and revenue for Mojang Studios' Minecraft.
Although details were scarce, Nadella shared that the Game Pass service generated annual revenues nearing $5 billion for the first time.
Looking forward, Nadella mentioned the development of around 40 games, but Hood projected a decline in gaming revenue by mid-to-high single percentages next quarter and a mid-single-digit drop for Xbox content and services, following a strong year.
Despite a lucrative financial year, Microsoft didn't address the closure of several game studios or the "layoffs impacting thousands in its gaming sector" during earnings discussions.