Xbox Revenue Drops 7%, But Game Pass Soars Thanks to Call of Duty!

On Wednesday, Microsoft disclosed its Q2 FY25 financial findings, indicating a 7% decrease in gaming income compared to the same period last year, ending December 31, 2025. However, the quarter witnessed a 2% increase in Xbox content and services revenue, which the company attributes to growth in Xbox Game Pass. On the other hand, Xbox hardware revenue experienced a 29% decrease year-over-year.

This quarter doesn’t show a significant year-over-year increase as expected, mainly due to the fact that Microsoft’s acquisition of Activision Blizzard King (which contributed greatly to revenue) is now fully incorporated into the company’s financial reports. The last major surge in revenue from this acquisition was accounted for in Q1 of the fiscal year 25.

In other parts of the company, Microsoft’s Cloud division reported earnings of approximately $40.9 billion, marking a 21% increase compared to the same period last year. Across the entire company, Microsoft recorded quarterly revenue of $69.6 billion, with operating income of $31.7 billion – this figure also saw a rise of 17% compared to the previous year.

Xbox Game Pass growth is thanks to Call of Duty

It’s common knowledge that the surge in Xbox Game Pass subscriptions can be attributed to the debut of Call of Duty: Black Ops 6. Notably, this game, being an exclusive Xbox first-party title, was made available on Xbox Game Pass Ultimate and PC Game Pass from its release day.

In the context of American gaming market trends, research firm Circana highlighted an increase in subscription spending across October, November, and December 2024. This surge was predominantly fueled by the popular Xbox Game Pass service.

2025 promises an exciting reveal of the Xbox Game Pass library, as the in-house teams have a rich collection of content lined up. Among these are Obsidian’s Avowed, Compulsion’s South of Midnight, and id Software’s DOOM: The Dark Ages, which will be released successively in February, April, and May respectively.

Developing…

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2025-01-30 01:09