Revenue from Xbox content and services has increased by 13% compared to the previous year

Microsoft's financial results for the last quarter of its fiscal year 2025 demonstrate substantial advances in gaming revenue, alongside gains in Xbox content and services.

Financial Performance

For the quarter ending June 30, 2025, Microsoft reported:

• Total Revenue: $76.4 billion, reflecting an 18% increase compared to the previous year
• Net Income: $27.2 billion, showing a 24% rise year-over-year
• Revenue from More Personal Computing (including Xbox): $13.5 billion, indicating 9% growth from the prior year

Key Insights

Microsoft's CEO, Satya Nadella, described this period as a "record fiscal year" during the company's earnings call. A significant contributor to these results was Microsoft's robust cloud services. Amy Hood, the executive VP and CFO, highlighted the fiscal closure with a surge in Microsoft Cloud earnings, which reached $46.7 billion, marking a 27% increase (or 25% when adjusted for currency).

Additionally, Microsoft's cloud-based data platform, Microsoft Fabric, has become the company's fastest-growing database product. Its revenue increased by 55% compared to the same period last year.

Gaming revenue saw a year-over-year growth of 10%, while revenue from Xbox content and services rose by 13%, fueled by strong performances from first-party content and Xbox Game Pass, according to Hood.

Nadella also mentioned that Microsoft ranked as the leading publisher on both Xbox and PlayStation for the quarter, driven by the successful releases of Forza Horizon 5 and Oblivion Remastered on the PlayStation 5 platform.

Recent reports indicated that six of the top ten best-selling PlayStation games in Q2 2025 were Microsoft-published titles, including Indiana Jones and the Great Circle, Minecraft, Doom: The Dark Ages, Call of Duty: Black Ops 6, Forza Horizon 5, and Oblivion Remastered.

Nadella stated that Call of Duty: Black Ops 6 attracted 50 million players, accumulating over two billion hours of gameplay. Furthermore, the April release of A Minecraft Movie boosted monthly active usage and revenue for Mojang Studios' Minecraft.

Although Microsoft did not provide extensive details about Game Pass, Nadella disclosed that the subscription service's annual earnings exceeded $5 billion for the first time. Looking forward, Nadella noted that Microsoft is developing nearly 40 games. However, Hood projected that gaming revenue might drop by "mid-to-high-single digits" in the upcoming quarter, with Xbox content and services potentially declining "in the mid-single digits" compared to a robust 2025.

Microsoft experienced a financially successful year, yet the company did not address the closure of several game studios or the layoffs involving thousands within its gaming sector during the earnings presentation.