Xbox Console Gross sales Drop 22%, Microsoft Gaming Income Up 10%

Microsoft reported its newest 2025 quarterly earnings outcomes Wednesday, revealing development for Microsoft Gaming however poor gross sales for Xbox consoles.

The tech firm’s gaming-specific gross sales reached $5.5 billion for the three-month interval which ran April 1-June 30, up 10% from the $5 billion within the comparable 2024 quarter.

Content and companies gross sales elevated 13%. Hardware income, which is made up of gross sales for Xbox gadgets, together with the Xbox Series X and S consoles, was down 22% whole. (For comparability, final quarter, console gross sales fell simply 6%).

During the quarter, Xbox’s notable releases included “South of Midnight,” third-party title “Clair Obscur: Expedition 33,” “The Elder Scrolls IV: Oblivion Remastered,” “DOOM: The Dark Ages,” in addition to updates for ongoing franchises together with “Minecraft,” “Call of Duty,” “Diablo,” “Overwatch,” “Halo” and “World of Warcraft.”

For Microsoft total, Wall Street forecast earnings per share (EPS) of $3.38 on $73.8 billion in income, based on analyst consensus knowledge offered by LSEG. Microsoft reported diluted EPS of $3.65 on $76.4 billion in income.

“Our strong performance this fiscal year speaks both to our innovation and to the trust customers continue to place in Microsoft,” Microsoft chairman and CEO Satya Nadella stated in a letter to shareholders. “As a platform company, we are focused on meeting the mission-critical needs of our customers across our at-scale platforms today, while also ensuring we lead the AI era.”

Microsoft govt vp and CFO Amy Hood added: “We closed out our fiscal year with a solid quarter, highlighted by record bookings and Microsoft Cloud quarterly revenue of $36.8 billion, up 21% (up 22% in constant currency) year-over-year.”