Xbox FY25 Q4 gaming revenue is up 10% year-over-year, driven by growth in first-party games — with Xbox Game Pass reaching nearly $5 billion in annual revenue “for the first time”
For three consecutive quarters, Microsoft has reported an increase in Xbox Game Pass subscribers, as seen in FY25 Q2 and FY25 Q3, and now in the current quarter.
This trend aligns with observations made by video game analyst Mat Piscatella, who pointed out that U.S. spending on video game subscriptions hit a record high in June 2025.
Despite other gaming subscriptions contributing to this total, it’s undeniable that Xbox Game Pass continues to be a substantial part of the market.
The surge in subscribers can be attributed to Microsoft releasing numerous first-party games over the last few months. April welcomed Compulsion Games’ South of Midnight and Bethesda Game Studios’ The Elder Scrolls 4: Oblivion Remastered, followed by id Software’s DOOM: The Dark Ages in May.
Additionally, the past period has been beneficial for third-party games added to Xbox Game Pass, with Sandfall Interactive’s Clair Obscur: Expedition 33 receiving positive reviews upon its release.
Furthermore, game sales are being boosted by ports of Xbox titles to PlayStation 5, such as Forza Horizon 5 and Indiana Jones and the Great Circle, which debuted on Sony’s gaming platform in April. Forza Horizon 5 has been the best-selling game on the console for 2025.