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- Microsoft’s CEO, Satya Nadella, has revealed in an earnings call that Xbox Game Pass has made a new record.
- He said that the subscription service, for the very first time, has reached an annual revenue of $5 billion.
- Nadella also revealed that Microsoft was the top publisher for both Xbox and PlayStation in Q4, FY 2025.
Xbox Game Pass, while it offers pretty solid value for money, was recently under some criticism. An analyst who previously predicted that the subscription service would reach 200 million subscribers by 2034 is alarmed that it is in trouble due to its nonexistent growth.
Just recently, Microsoft’s final quarter of the 2025 fiscal year’s financial results are out and reveal that the subscription service has just hit a new record of $5 billion in annual revenue for the very first time.
Why it matters: Game Pass numbers were said to be stagnant for a long time, but the new report from Microsoft says otherwise.
In the report, it has been revealed that the overall revenue and net income have increased by 18% and 24%, respectively. However, its hardware sales have seen a massive decline, which was to be expected as the gaming giant has shifted its focus from it for the time being.
Satya Nadella, the CEO of Microsoft, revealed in the earnings call that in Q4 of the 2025 fiscal year, Microsoft is the top publisher on both Xbox and PlayStation, which is a significant achievement.
He also revealed that the Game Pass annual revenue has reached $5 billion for the first time, and there are 500 million monthly active users across all platforms and devices.
We are now the top publisher on both Xbox and PlayStation this quarter. Game Pass annual revenue was nearly $5 billion for the first time.
Despite Xbox’s hardware still struggling, this is a pretty solid achievement. It is also worth noting that the company has something special in store for its fans, and it will likely make a comeback with its next Xbox consoles.
Recently, its parent company, Microsoft, laid off a whopping 9,000 employees, which resulted in a massive controversy. Shortly after the layoffs, it was revealed that the company is on its way to reaching a $4 trillion evaluation, which it is likely to achieve soon.
What do you think about Xbox’s recent Q4 results? Share your thoughts with us in the comments section below or join the official Tech4Gamers forums for discussion.
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[News Editor]
Obaid is pursuing a Law degree while working as a content writer. He has worked as a gaming writer for over three years because of his passion for the medium and reporting the latest updates in the industry. Having played hundreds of games, Obaid finds himself coming back to Elden Ring, Cyberpunk 2077, and Red Dead Redemption 2, with these games being among his favorites. He has also been mentioned on highly regarded websites, such as Wccftech, Metro UK, PS Lifestyle, GamePressure, VGC, and Gamespot.
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