Xbox FY25 This fall gaming income is up 10% year-over-year, pushed by progress in first-party video games — with Xbox Game Pass reaching practically $5 billion in annual income “for the first time”

Microsoft shared monetary particulars for FY25 Q4 on Wednesday, revealing that gaming income is up 10% year-over-year for the quarter ending June 30, 2025.

More particularly, Xbox content material and companies income is up 13% year-over-year, with the corporate noting progress in first-party video games and Xbox Game Pass as drivers for the rise. Meanwhile, {hardware} income is down 22% year-over-year.

As an entire, Microsoft reached $76.4 billion in income for the quarter, with $27.2 billion in web earnings, up 18% and 24% year-over-year, respectively.

Xbox Game Pass is rising once more, whereas total sport gross sales are sturdy

This marks the third quarter in a row the place Microsoft reported progress in Xbox Game Pass, following related mentions in FY25 Q2 and FY25 Q3.

It additionally tracks with feedback from online game analyst Mat Piscatella, who famous that online game subscription spending reached an all-time excessive within the U.S. in June 2025.

Obviously, that features different non-mobile gaming subscriptions, but it surely’s nonetheless abundantly clear that Xbox Game Pass stays a major piece of the pie.

As for the “why,” it is price noting that Microsoft has launched a really staggering variety of first-party video games over the previous few months, with April seeing the arrival of Compulsion Games’ South of Midnight, in addition to Bethesda Game Studios’ The Elder Scrolls 4: Oblivion Remastered. Meanwhile, May introduced id Software’s DOOM: The Dark Ages.

Outside of first-party video games, it is also been an awesome interval for third-party additions to Xbox Game Pass, with Sandfall Interactive’s Clair Obscur: Expedition 33 seeing important acclaim upon its launch.

Game gross sales are additionally being bolstered by completely different ports of Xbox titles to PlayStation 5, with Forza Horizon 5 and Indiana Jones and the Great Circle coming to Sony’s gaming platform in April. Both have offered properly, with Forza Horizon 5 reportedly the best-selling sport on the console for 2025.